Discovery Capital Corporation

Discovery Capital Corporation

June 14, 2007 14:06 ET

Discovery Capital Celebrates Success of Portfolio Company TIR Systems Ltd.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 14, 2007) - Discovery Capital Corporation ("Discovery Capital" or the "Company") (TSX VENTURE:DVY.Y) is pleased to summarize its successful investment in portfolio company, TIR Systems Ltd., which was recently acquired by Philips Electronics Ltd. in a $75 million transaction. Discovery Capital will realize cash of $2.9 million as a result of this transaction, in which all outstanding shares of TIR were acquired by Philips pursuant to a court-approved plan of arrangement at a price of $1.60 per share.

Discovery Capital's first investment in TIR was made in early 1999, at a purchase price of $.20 per share. TIR at the time was a fledgling developer of lighting system products with a market capitalization of approximately $1.0 million. Discovery Capital continued to provide strategic and financial support to TIR - it made two subsequent investments, the last in the fall of 2001 at a critical time in TIR's development and a precarious time in global financial markets, bringing its average TIR share purchase price to $0.37 per share. In the interim, TIR developed an impressive intellectual property portfolio, grew its operations organically and became an acknowledged world leader in Solid State Lighting, through the development of its Lexel®, the first fully integrated, LED-based light source, designed specifically to produce high quality white light essential for general lighting applications, and positioned to become a new standard in the global lighting market. TIR has a facility in Burnaby and will continue to operate as Philips Electronics Ltd., a wholly-owned, indirect subsidiary of Royal Philips Electronics of the Netherlands, a global leader in healthcare, lifestyle and technology, employing approximately 124,300 employees in more than 60 countries worldwide.

"This is one of the most significant BC technology industry transactions recently, and we think this is welcome news in that the Philips transaction represented the best option for commercializing TIR's groundbreaking technology on a truly global scale," commented Harry Jaako, Chairman and Co-CEO of Discovery Capital. "We have supported and worked with the excellent, hard-working team at TIR for over 8 years, and celebrate with them in having been able to attract a global leader with the expertise and expanse of Philips Electronics. Along the way, we were able to realize a sale price of four times our average share purchase price. We know that hard work and patience is required to develop new technology companies here in British Columbia to become world-class participants in the global markets, and TIR is a perfect example of that."

About Discovery Capital:

With over 20 years of venture capital experience in British Columbia, Discovery Capital is a venture fund manager through its wholly owned subsidiary, Discovery Capital Management Corp., and venture capital investor specializing in: information technology, communications, health and life sciences, and other advanced technologies. Discovery Capital has proven expertise in strategic planning, management development, innovative financing strategies, corporate governance and positioning for liquidity. Discovery Capital Management Corp. is the manager of British Columbia Discovery Fund (VCC) Inc., a British Columbia venture capital fund that has raised over $42.6 million to date and has investment interests in twelve developing technology companies.

Harry Jaako, Chairman and Co-Chief Executive Officer

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 Company cautions that actual performance will be affected by a number of factors, many of which are beyond its control. Future events and results may vary substantially from what the Company currently foresees.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Discovery Capital Corporation
    John McEwen
    President and Co-CEO
    (604) 683-3000 ext. 106
    Discovery Capital Corporation
    Harry Jaako
    Chairman and Co-CEO
    (604) 683-3000 ext. 105
    Discovery Capital Corporation
    Charles Cook
    (604) 683-3000 ext. 102
    (604) 662-3457 (FAX)