Discovery Capital Corporation
TSX VENTURE : DVY.Y

Discovery Capital Corporation

April 24, 2007 17:12 ET

Discovery Capital Corporation Reports Year End 2006 Results-Net Asset Value of $0.21 Per Share

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 24, 2007) - Discovery Capital Corporation ("Discovery Capital" or the "Company") (TSX VENTURE:DVY.Y) provides the following summary of its financial results for the year ended December 31, 2006.

Key points include the following:

- At December 31, 2006, net asset value ("NAV") per share was $0.21, virtually unchanged from NAV per share of $0.22 at December 31, 2005.

- Total results of operations for 2006 were $(379,125), including a positive change of $349,183 in unrealized depreciation of investments. In 2005, total results of operations were $(11,661,873), including a negative change of $(10,479,620) in unrealized depreciation of investments. Changes in the trading prices or the estimated fair values of the Company's investments can vary significantly from year to year, resulting in high volatility in total results of operations.

2006 Financial Review

Selected financial data derived from the Company's consolidated financial statements as at and for the years ending December 31, 2006 and 2005 is as follows:



------------------------------------------------------------------------
As at As at
December 31, December 31,
2006 2005
------------------------------------------------------------------------
Statements of Financial Position
------------------------------------------------------------------------
Net assets $ 10,619,229 $ 11,012,459
------------------------------------------------------------------------
Unrealized depreciation of investments (11,632,082) (11,981,265)
------------------------------------------------------------------------
Net Asset Value per share $ 0.21 $ 0.22
------------------------------------------------------------------------

------------------------------------------------------------------------
Year ended Year ended
December 31, December 31,
Statements of Operations 2006 2005
------------------------------------------------------------------------
Management fee and other income $ 1,102,371 $ 1,057,429
------------------------------------------------------------------------
Loss before change in value of investments (364,117) (438,048)
------------------------------------------------------------------------
Realized losses on disposal of investments (364,191) (744,205)
------------------------------------------------------------------------
Change in unrealized depreciation of
investments 349,183 (10,479,620)
------------------------------------------------------------------------
Total results of operations (379,125) (11,661,873)
------------------------------------------------------------------------
Total results of operations per share $ (0.01) $ (0.22)
------------------------------------------------------------------------


For the year ended December 31, 2006, loss before change in value of investments declined as compared to the year ended December 31, 2005 as a result of a small increase in management fee and other income and slightly lower overall expenses.

The Company had working capital of $1,491,004 at December 31, 2006, up from working capital of $630,988 at December 31, 2005. There was a net increase in cash and cash equivalents of $945,320 during 2006, as net investing activities generated cash (primarily as a result of the completion of the disposal of the Company's investment in PhotoChannel Networks Inc.) whereas net investing activities consumed cash in 2005. Further, the Company was comparatively inactive with its normal course issuer bid and made no redemptions in 2006, and consumed less cash in operations. All of these factors contributed to the increase in cash and cash equivalents in 2006.

Full details of the Company's year-end 2006 financial results are found in the Company's financial statements and related Management's Discussion and Analysis which will be filed on SEDAR at www.sedar.com.

About Discovery Capital:

With 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 million to date and has investment interests in twelve developing technology companies.

For more information about Discovery Capital Corporation, please visit www.discoverycapital.com.

John McEwen, President and Co-Chief Executive Officer

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
    or
    Discovery Capital Corporation
    Harry Jaako
    Chairman and Co-CEO
    (604) 683-3000 ext. 105
    or
    Discovery Capital Corporation
    Charles Cook
    CFO
    (604) 683-3000 ext. 102
    (604) 662-3457 (FAX)
    Email: info@discoverycapital.com
    Website: www.discoverycapital.com