SOURCE: Dragon Capital Group Corp.

June 05, 2007 07:30 ET

Dragon Capital Group Reports First Quarter 2007 Revenues From Its Six Subsidiaries Rising to $10.8 Million

Operating Income From Six Subsidiaries Reaches $339,000

SHANGHAI, CHINA--(Marketwire - June 5, 2007) - Dragon Capital Group Corp (PINKSHEETS: DRGV), a holding company of emerging technology companies in China, today announced its un-audited operating results for the 3 months ended March 31, 2007.

The Company's revenues for the six subsidiaries and on a consolidated basis rose to approximately $10.8 million for the first quarter of 2007. Net income for the six subsidiaries before taxes was approximately $339,000. On a consolidated basis the Company reported a loss of approximately $135,000 inclusive of $440,000 in non-cash expenses. The Company continued to improve its balance sheet as total assets rose to approximately $11.4 million, up from approximately $10.1 million at the end of 2006. Shareholder equity rose to $5.68 million in the quarter as compared to $5.23 million at the end of 2006. The Company has published its financial statements with financial notes, which are available for public viewing via http://www.pinksheets.com.

Lawrence Wang, CEO of Dragon Capital Group, stated, "We are happy to report that our subsidiaries continue to report solid growth in the first quarter. We continue to improve operational efficiencies and capitalize on new business opportunities as we move through the remainder of the year."

About Dragon Capital Group Corp.

Dragon Capital Group Corp (PINKSHEETS: DRGV) is doing business in China through its subsidiaries. Dragon was established to serve as a conduit between Chinese high-growth companies and Western investors. 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 to capital, merger & acquisition, business valuation, and revenue growth strategies. DRGV has developed a portfolio of high-tech companies operating in China. For more information about DRGV, please visit http://www.dragoncapital.us.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance, and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of competitive products, pricing and new technology; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

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