DRGV Dragon Capital Group Corp (PK)

Dragon Venture (Pink Sheets:DRGV), a holding company of high-tech companies in China, announced today it has signed a letter of intent to acquire 33.8% ownership of Shanghai Chengku Information Technology Company, Limited ("Chengku") for $100,000. Chengku will increase its registered capital to reflect the new investment of $100,000 and the new shareholder and change its name to Dragon Chengku upon completion of the acquisition. Completion of the transaction is subject to the execution of a final merger agreement, due diligence process, and shareholder approval and which shall take place no later than the closing date of August 1, 2005. Chengku, an e-commerce service provider within China for Chinese companies, was founded in June 2004 and has been profitable since January 2005 by operating its website at www.chengku.com. Chengku owns the biggest enterprise database in China with information on more than 5 million Chinese companies that account for the majority of private companies in China. Chengku officially started its website in January 2005. Since then, its popularity has been soaring. According to www.alexa.com, a site that monitors all websites on Internet traffic worldwide, ranks www.chengku.com approximately No. 4,000 in Internet traffic worldwide. As a professional commercial Internet media, Chengku develops its business based on a B2B model with E-commerce services. Chengku has developed more than 1,500 enterprise members since January 2005 and is the only gateway for urban business trading among businesses within China. Each member pays 5,000 RBM to 20,000 RMB (US$ 605 to $2,418) for annual membership fees. Chengku provides the following services for enterprises: online information popularization; online promotion; comprehensive e-Commerce services of online trading; online wholesale and retail stores to gain direct trade opportunities through online secured banking systems; publishing such information as enterprise member's request, information retrieval services including trade search engines, online supply and demand search; chargeable services for goods search and rank; cooperating with traditional medias to set up professional modern commercial Internet medias in every city; professional paper intermediary advertisement and yellow page advertising services for members; chargeable Wireless Internet Short-Message-Services and WAP website services. Lawrence Wang, CEO of Dragon Venture, comments, "As an incubator of high-tech companies in China, we seek to acquire a variety of emerging high-tech companies in China. After the huge success of online games and search engines in China, we believe E-commerce will be the third profit field based on the Internet in China. Only 5% of over 5 million Chinese companies have E-commerce operations. With a 5% additional penetration of the existing market, revenues could potentially grow to an excess of US$300 million in additional annual sales. We expect Chengku will generate over US$10 million in sales with US$2 million in net income in 2006 with adequate funding. The acquisition of Chengku, a rapidly growing company with innovative technologies and operations, will be another important step for us to build an exclusive network of high-tech companies operating in China." About Dragon Venture Dragon Venture ("Dragon") is doing business in China through its subsidiaries. Dragon was established to serve as a conduit between Chinese high-growth companies and Western investors. The current focus of Dragon is on the development of wireless 3G-based applications and business solutions. Two companies that Dragon has acquired are among the leading providers of mobile Internet applications and business solutions in China. As China emerges as a growing force on the global stage, Dragon's professionals will provide invaluable services for Western investors seeking to gain access to the Chinese high-tech economy. In addition, Dragon 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. Dragon 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. In addition, the company acquires and invests in innovative technology companies in China or forms joint ventures with both American and Chinese companies, focusing on emerging technology industries including Telecommunication, Information Technology, Wireless applications, and other high-tech industries. For more information about Dragon Venture, please visit http://www.dragonventure.net 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.