TriNorth Capital Inc.
TSX : TRT

TriNorth Capital Inc.

March 31, 2006 16:09 ET

TriNorth Capital Announces Results for Year Ended December 31, 2005

TORONTO, ONTARIO--(CCNMatthews - March 31, 2006) - TriNorth Capital Inc. (TSX:TRT) reported a net loss of $667,000 ($0.04 per share) for the year ended December 31, 2005, compared with a net loss of $369,000 ($0.02 per share) for 2004. The results reflected gains on the sale of marketable securities of $321,000 (2004: $39,000) and interest and other income of $118,000 (2004: $147,000), offset by general and administrative costs of $629,000 (2004: $755,000) and share of loss reported by equity-accounted investees of $133,000 compared with a share of income in 2004 of $42,000. The 2004 results included a dilution gain of $605,000 and a foreign exchange gain of $88,000. Amortization of purchase discrepancy in 2005 was $344,000, compared with $535,000 in 2004, and reduces the book value of the company's investment in Vitalink Worldwide to nil.

At December 31, 2005, TriNorth had $2,216,000 in cash and marketable securities (at quoted market value, a non-GAAP measure) and $3,647,000 (at book value) in investments in privately held and publicly traded technology-based businesses.

TriNorth's President & Chief Executive Officer, John Pennal, said the Company has refined its strategy for venture investments since it made its first investments five years ago. "We will continue to seek investment opportunities in high growth potential companies, both private and public, but with a clear preference for publicly traded companies."

In March 2006, TriNorth sold its investment in Intelligent Mechatronic Systems (IMS) and now has equity interests in two privately held investees - Vitalink Worldwide, which operates as Business.ca, and VFM Interactive Inc. - and two publicly traded investees - Biorem Inc. (TSX: BRM) and SilverBirch Inc. (TSXV: SVB).

"Business.ca and VFM both made solid progress during the year, and we remain confident about the business prospects for both companies." Mr. Pennal added that Business.ca established an affiliate company during 2005 and incurred substantial initial set-up costs that were expensed in 2005 but should not recur in 2006 and subsequent years.

Following the sale of the Company's interest in IMS on March 15, 2006, TriNorth now has approximately $0.22 per share in cash and marketable securities at current quoted market value, a non-GAAP measure. The book value of TriNorth's privately held venture investments and the current market value of TriNorth's publicly traded venture investments totals $0.11 per share, which includes no value for the Company's investment in Business.ca that has been written off under GAAP.

TriNorth's audited financial statements for the year ended December 31, 2005 and the related Management's Discussion and Analysis can be accessed electronically at www.sedar.com.

TriNorth Capital Inc. is a Canadian-based investment company that has investments in privately held and publicly traded high growth potential companies, cash resources and substantial tax losses to shelter future income and investment gains.

This release contains forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct, and such forward looking statements should not be unduly relied upon. These statements speak only as of the date of this release, and are subject to a number of risks and uncertainties, including the factors discussed in the Company's current and previous filings with the Canadian securities regulatory authorities. Actual results could differ materially from these forward-looking statements.

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