DRGV Dragon Capital Group Corp (PK)

Dragon Capital Group Corp. (PINKSHEETS: DRGV), a leading holding company of emerging high-tech companies in China, announced today the company's financial results for the third quarter of fiscal 2008 ended September 30, 2008.

Financial Highlights:

Revenue for the third quarter of 2008 ended September 30, 2008 were $11.44 million, slightly lower than revenue of approximately $11.79 million in the third quarter ended September 30, 2007. Cost of goods sold for the third quarter of 2008 were $10.73 million, a decrease from $11.11 million compared to the third quarter of 2007. Net income for the third quarter of 2008 ended September 30, 2008 increased to approximately $265,000 as compared to a loss of approximately $288,000. This increase in net income was largely attributable to a significant improvement in operating expenses which declined when compared to the third quarter of 2007 by approximately $439,000 to approximately $318,000.

Nine-Month Financial Results

Revenue for the first nine months of 2008 reached $34.17 million, a slight increase when compared to revenue of $33.44 million for the same period of 2007. Cost of goods sold for the first nine months of 2008 were $31.87 million, a slight increase when compared to $31.50 million for the first nine months of 2007. Operating expenses for the first nine months of 2008 were $1.16 million, a decrease of 48.24% compared to the first nine months of 2007. This is largely attributable to a substantial decrease in non-cash compensation when compared to the same period in 2007. For the nine months ended September 30, 2008, net income increased to approximately $730,000 from a net loss of approximately $864,000 in 2007.

Balance Sheet

At September 30, 2008, total assets were $16.65 million, an increase of over 15.19% from $14.46 million at December 31, 2007. This increase was partially attributable to an increase in accounts receivables and an increase in inventory. At September 30, 2008, shareholder equity reached $9.37 million and total current assets reached $16.01 million with working capital of approximately $9.74 million.

Mr. Lawrence Wang, CEO of Dragon Capital Group, stated, "Dragon posted stable, strong sales in a challenging environment. More importantly we have achieved profitability through a significant reduction in overall operating expenses. We are committed to increasing overall performance in this difficult economic environment and believe the high-tech industry within China still has tremendous growth potential for the future. We continue to look to reduce costs and achieve higher operating efficiencies which we believe can extend our profitability into the coming years. We remain committed to seeking opportunistic acquisitions to grow our business as we work diligently to increase our shareholder value."

About Dragon Capital Group Corporation

Dragon Capital Group Corporation is a holding company serving as a business incubator for emerging Chinese businesses. Dragon currently controls seven subsidiaries operating in high-tech, IT products and services and management consulting. Three of the subsidiaries are growing strong recurring revenue streams from electronics hardware distribution and network integration. The company's other three subsidiaries, still in the emergent stage, are focused on wireless Internet applications, mobile business solutions, software development, enterprise management, computerized automations systems integration and network integration. For more information, 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.

Contact: Investor Relations: Gary Liu Tel: 954-363-7333 ext. 318