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 first quarter ended March 31, 2010.

Financial Highlights:

Revenue for the first quarter ended March 31, 2010 was $12.4 million, a 4% increase over the $11.9 million recorded in the first quarter of 2009. Cost of goods sold for the second quarter of 2010 were $11.6 million compared to $11.3 million in the second quarter of 2010. Gross margins improved to 6.4% in the first quarter ended March 31, 2010, up from 5.2% in the first quarter of 2009. For the first quarter ended March 31, 2010, Dragon Capital recorded a net loss that narrowed to ($151,800) as compared to a net loss of ($678,500) in the first quarter of 2009. The improvement in net results was mainly attributable to a loss from the sale of discontinued operations in the first quarter of 2009 of (709,000) partially offset by an increase of $340,000 in general and administrative expenses in the first quarter of 2010.

Balance Sheet

At March 31, 2010, total assets were $15.8 million compared to $15.2 million at December 31, 2009. At March 31, 2010, shareholder equity was $8.5 million and total current assets were $15.5 million with working capital of approximately $8.1 million as compared to December 31, 2009 where shareholder equity was $8.6 million and total current assets were $14.9 million with working capital of approximately $8.2 million.

Mr. Lawrence Wang, CEO of Dragon Capital Group, stated, "Dragon continues to post increasing sales in an environment that remains somewhat challenging. More importantly our gross margins have shown marked improvement as we continue to improve overall efficiencies. We are committed to achieving continued improvement in performance through the building of our core operations and will continue to look to opportunistically acquire new businesses and evaluate strategic alternatives for non-performing assets to further improve our operating results in the future. We continue to believe the high-tech industry within China has tremendous growth potential for the future and we remain focused on achieving improved results to increase our shareholder value."

About Dragon Capital Group Corporation

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

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 word 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.

Contact: Investor Relations: Lillian Wong Tel: 954-363-7333 ext. 317