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SHANGHAI, Sept. 21 /PRNewswire-FirstCall/ - Dragon Capital Group Corp (Pink Sheets: DRGV), a leading holding company of emerging high-tech companies in China, announced today that Toro Research is initiating coverage of Dragon Capital Group Corp. (Pink Sheets: DRGV) with a speculative "Buy" recommendation and a performance rating of 8, on a scale of 10.

According to the report, our recommendation is based primarily on the company's revenue performance for the first half of 2009 as it relates to current market trends in the Asian region, as well as the company's historical performance and additional outside factors such as recovering Chinese economy and expanding growth in the country's Information Technology and Telecommunications sectors. For more details, please visit http://www.dragoncapital.us. The following is an abstract for the research report.

Comparative Market Trends:

Dragon Capital Group reported (unaudited) revenue for the second quarter ended June 30, 2009 was $15.0 million, a 27% increase over the $11.8 million recorded in the second quarter of 2008. The company's revenue stream are currently derived from electronics hardware distribution and network integration. The 27% increase during the second quarter, as well as 20% for the first six months of 2009, seems to be defying current market trends in the region, from even some of largest players in the Information Technology industry.

Hewlett Packard, the world's largest technology company, with a portfolio that spans printing, personal computing, software, services and IT infrastructure, reported in July that Second Quarter revenue declined 10% in Asia-Pacific. When adjusted for the effects of currency the decline was 5%. IBM reported Second Quarter Asia-Pacific revenues decreased 7 percent (5 percent, adjusting for currency) and Dell said Asian revenue was down sharply during the second quarter, falling 21 percent compared to last year.

However, it is important to note that many of these large Information Technology companies operating in the region are seeing improvements in 2009. On August 28th, 2009, Dell, said it hopes to see revenue grow on an annual basis from 2010, driven by increasing demand from China and India. "China appears to be emerging fastest out of the financial crisis," Steve Felice, Dell's president for small and medium business, told reporters on a conference call.

Industry Overview: Technology and China's Ascent

Over the past 30 years, China has been the fastest growing nation in the world, achieving year-after-year, an average annual GDP growth rate of around 9% to 10%. And even in the face of one of the deepest global recessions since World War II, China's economy continues to show resilience as the country's recovery continues to gather steam. In July 2009, China reported that Gross-Domestic-Product growth reached 7.9% in the second quarter, just below the 8.1% goal the government set for growth in 2009, and well above the 6.1% seen in the first quarter.

This steadfast growth and economic development, together with a population of well over 1.3 billion people, has placed China as one of the fastest growing telecommunications and information technology markets in the world. And the availability for growth in these sectors seems limitless.

Take for example the Chinese Mobile Telecommunications Industry, one of the largest in the world. In April 2009, statistics from the country's carriers showed that China had almost 648 million mobile users after adding 26.7 million subscribers in the first quarter. However, Third Generation (3G) wireless technology is just now beginning to take hold, as the government, aimed at restructuring the domestic telecom industry, awarded 3G licenses to the top three carriers in January 2009. The move has since then spurred a wave of new investments, and aggressive development and deployment of telecommunication infrastructure throughout the country.

Conclusion:

As Dragon Capital Group continues to focus on the development of its subsidiaries, and capitalize on their individual innovative technological offerings, the company seems to be working towards taking a commanding position in China's high-tech sector in 2009 and beyond. The company's established operating history and proven track record of success has been evident, especially 2009, as it continues to post increases in sales at time when most others are reporting significant declines throughout the region. And finally as China continues to lead the way in economic recovery, and sign of improvements continue to materialize, we believe that Dragon Capital should be able to capitalize on the tremendous growth potential of the economic rebound.

However, it is important to note that, while the upside potential certainly exist for (OTC: DRGV), the company does face general business and operating risks, such as the competitive nature of the Information Technology and Electronics industry, a continued downturn or stagnation in the economic environment of China, changes in the political and economic policies and reforms of the Chinese government, as well as the fact that most of Dragon Capital's subsidiaries and assets are based in China, outside the jurisdiction of any legal system of the US. Investors are urged to be cautious and perform their own due diligence before making any investment in Dragon Capital Group (OTC: DRGV)

About Dragon Capital Group Corp.

Dragon Capital Group Corp (Pink Sheets: 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.