SOURCE: Dragon Venture

December 14, 2005 16:00 ET

Dragon Capital Group Completes Acquisition of $26 Million Information Technology Company and Forecasts Substantial Growth in 2006 and 2007

FORT LAUDERDALE, FL and SHANGHAI, CHINA -- (MARKET WIRE) -- December 14, 2005 -- Dragon Capital Group Corp (OTC: DRGV), formerly Dragon Venture, a leading holding company of emerging high-tech companies in China, has finalized the acquisition of Shanghai Zhaoli Technology Development Company, Limited ("Zhaoli"). The acquisition has received shareholder approval as well as the unanimous consent of the board of directors. Effective on December 15, 2005, Dragon Capital Group Corporation owns an 80% interest in Shanghai Zhaoli Technology Development Company, Limited.

Zhaoli is an information technology enterprise providing innovative technology solutions to enhance its customer's businesses. Zhaoli generated approximately $20 million in sales in 2004, and approximately $26 million in sales in 2005. Zhaoli's customers include financial institutions, telecommunication companies, hospitals, supermarkets, airports, railway stations, and various government agencies. Zhaoli is an authorized dealer for Epson, Canon, Hewlett-Packard and OKI products. Zhaoli has developed an ERS software system to manage accounting, distribution, inventory and sales.

Lawrence Wang, CEO and Chairman of Dragon Capital, stated, "The completion of this acquisition is proof of our commitment to increasing shareholder value. We anticipate substantial growth in the next three years, particularly because of huge demand for our services and products in China. We have made four acquisitions in 2005; as a result we forecast to generate $35 to $40 million in revenues and $1.5 to $2 million in earnings for 2006 and $45 to $50 million with $2.5 to $3 million in earnings for 2007. We will publish quarterly financial statements within 45 days after ending of each quarter starting the first quarter ended March 31, 2006. Presently we are evaluating more acquisition candidates as we aggressively pursue our acquisition plan."

About Dragon Capital Group Corp

Dragon Capital Group Corp (OTC: DRGV), formerly Dragon Venture, is doing business in China through its subsidiaries. Dragon was established to serve 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 http://www.dragoncapital.us

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.

Contact Information