SOURCE: Dragon Capital Group Corp

June 12, 2006 16:05 ET

Dragon Capital Group Acquires a $10 million Information Technology Firm

SHANGHAI, CHINA -- (MARKET WIRE) -- June 12, 2006 -- Dragon Capital Group Corp (PINKSHEETS: DRGV), a leading holding company of emerging technology companies in China, today announced the acquisition of Shanghai Longri Technology Development Company, Limited ("Shanghai Longri"). Dragon Capital will issue 7 million restricted shares, valued at $560,000, to acquire 51% ownership of Shanghai Longri via a stock exchange on the basis of shareholder equity of Shanghai Longri as April 30, 2006.

Shanghai Longri generated approximately $10 million in gross sales with approximately $450,000 in net income in 2005. Shanghai Longri expects to generate approximately $15 million in gross sales with approximately $750,000 in net income for 2006.

Shanghai Longri is rapidly growing information technology ("IT") companies. Shanghai Longri is engaged in network integration, network service, and IT products distribution. Shanghai Longri is an authorized agent for several prominent IT product suppliers, such as Epson, IBM, Hewlett Packard, Samsung, Legend and Toshiba. Shanghai Longri also provides network design, equipment installation, and after-sales services, including hardware and software integration and support, for various multi-national companies. Shanghai Longri has established retail offices and service centers in Shanghai, Nanjing, and Hangzhou offering quality, professional network services for its customers throughout the eastern area of China. For more information about Shanghai Longri, please visit

Lawrence Wang, CEO of Dragon Capital stated, "This acquisition is proof of our commitment to increasing shareholder value. We are very pleased to have Shanghai Longri to join the Dragon Family. Services and products provided by Shanghai Longri are complementary to services and products of our current subsidiary, Shanghai Zhaoli. Shanghai Longri and Shanghai Zhaoli can develop an effective cross sale network among over 8,000 combined clients. We see tremendous business growth for us by working with Shanghai Longri. We believe that the dynamic increases taking place in the IT industry in China offers Dragon Capital a tremendous growth opportunity in the coming years. Presently we are evaluating more acquisition candidates as we aggressively pursue our acquisition plan to grow our businesses to a new level."

About Dragon Capital Group Corp

Dragon Capital Group Corp (PINKSHEETS: DRGV), formerly Dragon Venture, is doing business in China through its subsidiaries. Dragon was established to serves as a conduit between Chinese high-growth companies and Western investors. As China emerges as a growing force on the global stage, DRGV's professionals will provide invaluable services for Western investors seeking to gain access to the Chinese high-tech economy. In addition, DRGV functions as an incubator of high-tech companies in China, offering support in the critical functions of general business consulting, formation of joint ventures, access of capital, merger & acquisition, business valuation, and revenue growth strategies. DRGV will develop a portfolio of high-tech companies operating in China. Our focus will be on innovative technological applications, which are poised to alter the competitive landscape of the industry. For more information about DRGV, please visit

Safe Harbor Statement

Certain statements set forth in this press release constitute "forward-looking statements". Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning," "expect," "believe," "will likely," "should," "could," "would," "may" or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited operating history, the limited financial resources, domestic or global economic conditions -- especially those relating to China, activities of competitors and the presence of new or additional competition, and changes in Federal or State laws, restrictions and regulations on doing business in a foreign country, in particular China, and conditions of equity markets.

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