Published: April 26, 2006

BDC Capital Seeks to Become an Operating Company

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BDC Capital, Inc., (OTC BB: BDCI) today announced that it is asking for shareholders approval to withdraw the company's election to be treated as a BDC under Section 54 of the Investment Company Act of 1940. BDC Capital's board voted unanimously to seek the change so that the company can function as an operating entity rather than as a closed-end investment company.

This matter is being brought before shareholders by a proxy vote on May 3, 2006.

If the proposal to withdraw the election to be treated as a BDC is approved by its shareholders, the company plans to directly operate its subsidiaries and assets. "The board decision to withdraw the company's status as a BDC more accurately reflects the reality of our business and of our assets," Richard A. Pomije, Chief Executive Officer, said. The company also expects to remain a fully reporting company, retain a majority of independent directors, and maintain an audit committee, Pomije said.

About BDC Capital

Any statements contained herein related to future events are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on forward-looking statements. BDC Capital, Inc. undertakes no obligation to update any such statements to reflect actual events.