Discovery Capital Corporation

Discovery Capital Corporation

July 14, 2005 16:40 ET

British Columbia Discovery Fund (VCC) Inc. and Discovery Capital Corporation: British Columbia Discovery Fund Leads Investment of $3.0 Million in Mobidia Technology Inc.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 14, 2005) - British Columbia Discovery Fund (VCC) Inc. and Discovery Capital Corporation (TSX VENTURE:DVY.Y) -

Discovery Capital Management Corp. ("Discovery Capital"), manager of British Columbia Discovery Fund (VCC) Inc. (the "Fund" or "BCDF"), is pleased to announce that the Fund has made an additional investment of $1,000,000 into Mobidia Technology Inc. ("Mobidia") as part of a $2,500,000 financing that included the participation of Business Development Bank of Canada ("BDC") and B.C. Advantage Funds (VCC) Ltd. ("Advantage"). As announced in February 2005, BCDF had previously funded an initial seed round investment of $500,000 bringing its total investment in Mobidia to $1,500,000. In connection with its investment, Greg Smith of BDC has been appointed to Mobidia's board of directors.

The Fund is also pleased to announce that Trent Punnett, Vice President, Marketing at Sierra Wireless, Inc., has been appointed to the board of directors of Mobidia coincident with the closing. As Vice President, Marketing, Mr. Punnett is responsible for Sierra Wireless' global marketing initiatives, including strategic marketing, product management and corporate marketing and communications. Mr. Punnett joined Sierra Wireless from Motorola, where he held senior positions in marketing, business development, and sales over a period of 14 years. During his career at Motorola, Mr. Punnett worked with wireless data, cellular infrastructure, voice over IP, Wi-Fi, broadband cable and DSL technologies. He has significant experience in international markets and with major wireless and wireline telecommunications customers. Mr. Punnett holds a Master of Science, Business Administration and a Bachelor of Commerce from the University of British Columbia and is a Fellow of the Institute of Canadian Bankers. Mr. Punnett's advice and contacts in the telecommunications industry are expected to be invaluable as Mobidia develops and executes its sales and marketing strategy.

With the closing of this second round financing, Mobidia has raised $3,000,000 in aggregate, with the funds earmarked for completing product development, enhancing intellectual property protection and expanding marketing and business development. Mobidia has initiated discussions with its potential customers, which are principally Mobile Network Operators, to commence trials of its .wave™ technology.

"The closing of this financing with the participation of two new professional venture funds is a significant milestone for Mobidia," commented Charles Cook, CFO of BCDF. "The market for software that enhances wireless network capacity and performance is developing rapidly with the introduction of new wireless IP services and emerging wireless standards. Mobidia has made significant progress in its product development and in its discussions with potential customers and the proceeds of this financing will allow the company to accelerate these activities."

"We are pleased to be an early investor in Mobidia," noted David Raffa, COO and Fund Manager with Advantage. "We, at Advantage, are excited about Mobidia's prospects, particularly in light of the continuing demands being put on wireless networks from both a capacity and efficiency perspective. There is a real market pain here that needs to be solved."

"We appreciate the important role that Discovery Capital played in syndicating this round of financing," commented Allan Larmour, CEO of Mobidia. "Mobidia's Chief Scientist, Dr. S. Sharif, and CTO, Fay Arjomandi, have taken a foundation and holistic approach, with several U.S. patent pending technologies, to provide mixed wireless data traffic management over single or mixed wireless networks and the investment syndication will play a pivotal role in assisting Mobidia to deliver these capabilities to 3G, Wi-Fi, and WiMAX networks as early as Q1 2006."

About Mobidia Technology Inc.

Based in Richmond B.C., Mobidia Technology Inc. is a wireless technology company dedicated to providing software to wireless carriers around the globe. Mobidia's software product, .wave™, provides adaptive intelligent overlay technology to wireless networks that will enable mobile devices and carrier networks to monitor, classify, and manage specific data types' real-time requirements, providing comprehensive network reporting and ensuring increased bandwidth efficiency, increased network capacity, carrier control of new services over their networks including reduced customer support OPEX, and increased reliability, overall QoS, and performance for high value IP services including video streaming, wireless VoIP, video telephony, interactive gaming, email, corporate applications, and other multimedia services. Using several U.S. patented pending technologies on the wireless device, Mobidia is the only company taking the necessary mobile device and carrier network approach to reliably manage the many wireless data issues being seen in the market today. Mobidia's solution also provides a carrier integration strategy for supporting multiple network technologies (3G/4G, Wi-Fi and WiMAX), delivering consistency of service and seamless switching between networks, or, the ability to use multiple networks simultaneously. For more information about Mobidia Technology please visit or email

About British Columbia Discovery Fund (VCC) Inc.

British Columbia Discovery Fund (VCC) Inc. was established to make venture capital investments in a portfolio of small businesses in British Columbia that qualify under the Small Business Venture Capital Act, focusing on all of B.C.'s top internationally recognized technology clusters; information technology, communications, health and life sciences, and energy and environmental technologies. Established in 2002, the Fund is the largest SBVCA registered venture capital corporation making diversified investments in British Columbia with the objectives of achieving long-term capital appreciation for its shareholders and contributing to the growth in value and employment of the technology industry in British Columbia. In addition to offering a means of participating in the potential of British Columbia's newest technology ventures, the Fund offers significant tax savings to eligible British Columbia individual and corporate investors. The Fund offers its shares on a continuous basis and has raised approximately $28 million to date. To obtain further information about the Fund, please contact a registered advisor, or visit or

About Discovery Capital Management Corp.

With nearly 20 years of venture capital experience in British Columbia, Discovery Capital is a venture fund manager and investor specializing in: information technology, communications, health and life sciences, and other advanced technologies. We have enhanced value for over 250 technology ventures, with our proven expertise in strategic planning, management development, innovative financing strategies, corporate governance and positioning for liquidity.

For more information about Discovery Capital, please visit

About BDC Venture Capital

BDC Venture Capital is a major venture capital investor in Canada, active at every stage of the company's development cycle, from seed through expansion, with a focus on technology-based businesses that have high growth potential and that are positioned to become dominant players in their markets. BDC Venture Capital has been involved in venture capital since 1975 and has to date invested in more than 400 different companies. It currently manages approximately $550 million in venture capital assets invested in the areas of Life Sciences, Telecommunications, Information Technology, Advanced Technologies and Funds Investments.

About B.C. Advantage Funds (VCC) Ltd.

B.C. Advantage Funds (VCC) Ltd. is an investment fund which focuses on early stage technology and life science companies. Advantage, a $30,000,000 fund, is managed by Frank Holler, CEO and Fund Manager, Jim Heppell, President and Fund Manager, David Raffa, COO and Fund Manager and Tanner Philp, CFO and Fund Manager. Advantage has investments in more than 20 BC based technology companies.

John McEwen, CEO, B.C. Discovery Fund (VCC) Inc. and Discovery Capital Management Corp.

Harry Jaako, President, B.C. Discovery Fund (VCC) Inc. and Discovery Capital Management Corp.

This news release may include statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. The issuers caution that actual performance will be affected by a number of factors, many of which are beyond their control. Future events and results may vary substantially from what the issuers currently foresee.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Contact Information