Capital Alliance Group Inc.
TSX VENTURE : CPT

Capital Alliance Group Inc.

October 30, 2006 13:29 ET

Capital Alliance Subsidiary Signs Letter of Intent to Acquire Chinese Internet Job-Site

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 30, 2006) - Capital Alliance Group Inc. (TSX VENTURE: CPT) is pleased to announce that its subsidiary Black Gardenia Inc. has entered into a non-binding Letter of Intent to acquire China based Live-Interactive Company Limited ("Live-Interactive"). Black Gardenia plans to acquire 60% ownership of Live-Interactive in exchange for one (1) million restricted shares issued from Black Gardenia's treasury. The Letter of Intent contemplates that Black Gardenia may have the option to acquire the remaining 40% of Live-Interactive at a later date and at a price to be negotiated at that time.

Live-Interactive is a one-year old software development company headquartered in Dongguan, China with 14 employees. Live-Interactive owns and operates an online job search company under the site name http://www.fiva.cn. The word "fiva" means "excellent" in the Chinese language.

Fiva.cn has many innovative features to link job seekers with employers in China. A number of these features include: video resume presentations, video interview, SMS notices of new positions to job seekers on their mobile phones, as well as an extensive database of job applicants and Chinese companies looking for qualified employees.

Black Gardenia plans to develop an employer and job seeker database by introducing Live-Interactive to various China based campuses owned and operated by Capital Alliance's other subsidiary, CIBT School of Business & Technology Corp. and CIBT's education partners in China. CIBT has been servicing multinational companies operating in China for over a decade, and as such has cultivated an extensive relationship with these companies. Multinationals are in desperate need of western-skilled workers, and CIBT and its education partners possess an extensive database of graduating students looking for work or seeking career advancement. Live-Interactive has a natural synergy with CIBT as the Internet platform to connect employers with qualified job seekers. Future plans to enhance Fiva's business model include: advertising and marketing of CIBT's educational services to job-seekers, marketing of Fiva's services to employers outside of China including Canada, the United States and Europe, video recorded resumes of job-seekers; offering English and Chinese translation service to employers, and live interviews between employers and job-seekers via Fiva's web site.

About Live-Interactive:

Live-Interactive commenced business operations one-year ago and completed its software development process in July 2006, with the latest beta version of its software released in August and on-line services commencing in September. Within 30 days of operations, over 2000 users have signed up and posted their resumes online, and over 500 successfully matches between employers and desirable job seekers.

About China's job market:

According to news sources, China's galloping economic growth has created a competitive job market in major cities like Shanghai and Beijing, and there is great demand for people with technical expertise and experienced managers with the right business skill-sets. In a recent interview conducted by Business Week, there is evidence of an acute shortage of specialized engineers, especially in the automotive sector, as there has been a large amount of European and Japanese automakers coming into the country over the past few years. The article continued to say that revenues from online job listings for Beijing is going strong and has overtaken newspaper listings for 2005 and now leads by a large margin. Online jobs are now growing at 30% annually, which represented 100 million yuan last year. The Shanghai market is slightly smaller but growing at the same pace. On a national scale, newspaper revenues from recruitment ads generate 2 to 3 billion yuan annually, with flat growth. The $50 million online recruitment market in China however, is experiencing an impressive annual growth rate of 30%.

About Black Gardenia:

Black Gardenia is a Nevada based U.S reporting company that was recently acquired by Capital Alliance Group Inc. For further information on Black Gardenia Inc, please visit U.S SEC website at www.sec.gov and search company Black Gardenia.

About CIBT:

CIBT School of Business is a leading business and technical school, and has been providing training to students for over a decade in China. CIBT operates four campuses in Beijing, two campuses in Weifang, and five learning centers in other cities in China. CIBT has academic partnerships with Beijing University of Technology and Weifang University, and delivers postsecondary business, technology and technical trade skill programs to students and corporations in China. By cooperating with leading education providers in North America including Western International University, a subsidiary of Apollo Group Inc.; ITT Technical Institute; WyoTech Technical Institute, a subsidiary of Corinthian Colleges Inc.; and other universities from Europe and Asia, CIBT delivers advanced curricula to meet the progressive needs of China's growing student population.

Capital Alliance Group Inc.

Toby Chu, President & C.E.O.

WARNING: This news release contains forward-looking information. The reader is cautioned that assumptions used in preparing such information, although considered accurate at the time of preparation, may prove incorrect. The actual results achieved may vary materially from the information provided herein. Consequently, there is no representation by the company that actual results achieved will be the same as those forecast.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.


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