DISCOVER CAPITAL HOLDING CORP., (PINK SHEETS: DSCH)

Editors Note:

While current market conditions have sent many corporations and investors running for shelter, it also presents unique opportunities for those with a keen eye for value.  During the over-inflated, high-flying days of the last decade, such opportunities were a rarity.  However, the Darwinian-like purge of the last few miserable market years has left a smorgasbord of companies ripe for the picking, once flourishing business plans and bright ideas now dormant awaiting funding and/or talented management. 

We’ve all heard the stories of dot com CEO’s buying their once publicly traded companies for pennies on the dollar after the bust.

Today’s featured company is taking full advantage of the current economic environment by employing an active consolidation strategy within the financial services market, rolling up what they feel are the right deals in targeted fashion. Having completed its first key acquisition already, you’ll find that today’s feature is as interesting a business plan as it is an opportunists strategy.

*** ABOUT DISCOVER CAPITAL HOLDINGS ***

Discover Capital Holdings, Corp. is a diversified financial services holding company that is aggressively acquiring financial services companies at distressed multiples. 

DSCH recently acquired Indianapolis Securities, Inc., a Florida-based brokerage established in 1987, with more than $160-million of financial assets under management and approximately 3,000 customer accounts managed by 40 registered representatives throughout 10 branch offices around the country: Florida, Michigan, New York (Long Island and New York), Maryland, and Wisconsin . 

Indianapolis Securities already has the capabilities to handle most financial transactions for its clients' $60 million assets under management. Discover Capital Holdings has implemented a roll-up strategy with a specific technique of acquiring companies or assets in the financial sector at very small multiples. 

*** VISION AND STRATEGY ***

The presence of Discover Capital in the financial markets enables it to identify fast growing acquisition candidates that  would complement Discover's existing business.  Discover's financial strength permits it to be an active acquirer. The acquired companies benefit from the broad range of financial products and services offered from a single institution. 

Of equal importance, acquisitions have augmented the products offered by Discover, expanded the client base and added to the company's team of talented professionals. 

Discover Capital wants to offer a broad spectrum of integrated financial services that will be distributed through traditional channels and the Internet. These services and support will be provided, tracked and controlled through leading edge and proprietary technology. 

Initially, the priority growth strategy will be through mergers and acquisitions of companies that can be easily subsumed and incorporated within Discover Capital's businesses. 

The current depressed market environment creates opportunity for those who are able to identify value at distressed prices, opportunity that is not available under normal market conditions. 

The Capitalization strategy will be implemented through a roll-up.

The knowledge and experience level captured within the Company will allow Discover to establish an investment banking firm focused on underwriting and reverse mergers with high potential growth companies. 

The 5-year goal is $5 billion of assets under management, generating in excess of $100 million in revenue through 1000 registered representatives. 
 

*** ON THE MOVE ***

***Acquired a discount Broker in Wisconsin with over $100,000,000 under management in approximately 3,000 accounts. 

***The company has entered into a letter of intent to acquire 51% of e-techknowledge, Inc. a global financial software development and consulting company. 

***Acquired 51% of eAfterHours.com, an online trading platform that allows investors to trade 24 hours a day, 365 days a year. eAfterHours.com has also entered into a joint venture partnership with InvesTrend Research, an independent analyst firm that has approximately 51,000 users. Through this partnership, Indianapolis Securities will be the broker of choice to execute financial transactions for InvesTrend's user base. 

***Discover Capital Holdings, Corp. is initiating a private round of financing for $20,000,000. 

***Retained The Pinnacle Group of New York City to act as corporate investor relations counsel to the company. 
 

The objective at Discover Holdings is to build upon its core businesses and existing account base through the acquisition of additional brokers. 

Discover Holdings seeks to create value and economies of scale through consolidation and rolling up of financial institutions and assets, bringing them all together in one public company. 
 

*** DISCOVER CAPITAL BROKERAGE ***

EQUITIES/EMERGING MARKETS
Listed Equities, Over -the Counter Equities, Preferred Stocks, New Issue Equities, Options, Warrants, Arbitrage Situations,  Institutional Coverage,  International Equities, New Issues, Equity, Fixed Income, Emerging Markets and Equity Research.  Research products are distributed via printed copy to our clients and to major research services like Nelsons. It is also distributed electronically through First Call and Bloomberg terminals. The research department makes presentations to institutional investors about our investment ideas and provides telephone support to large institutional clients

FIXED INCOME INVESTMENT BANKING
Corporate Bonds, Portfolio Strategies, Fixed Income Research, High Grade Bonds, Municipals, Government Bonds, Government Agencies, Mortgage-backed Securities, Convertible Bonds, Unit Investment Trusts, Mutual Funds, Equity Underwriting, Mergers & Acquisitions, Private Placements, Public Offerings, International Investment, Banking, Spin-offs. 

ASSET MANAGEMENT / ACCOUNT SERVICES
Managed Accounts, Funds Management, IRA Accounts, Keogh Accounts, Pension Services, Portfolio Strategies. 

CORPORATE FINANCE 
Indianapolis Securities Inc. has a growing corporate finance operation. Many of the company's clients today are companies that the Indianapolis Securities management team has advised for many years. Indianapolis Securities provides resources like: recapitalizations, refinancing, advisory services, bridge financing, venture capital funding, IPOs, fairness opinions and valuations.

INSTITUTIONAL SALES & TRADING
Indianapolis Securities employs experienced traders who execute orders quickly and efficiently. Indianapolis Securities Inc. traders routinely handle orders in options and stocks traded on the NASD/MSRBAQ, New York and American Stock Exchanges. The block/institutional trading desk is located in New York. This trading desk offers superior execution and market visibility for a variety of blue-chip investment clients, including insurance companies, mutual funds, money managers, and risk arbitrageurs.
 

*** Tomorrow's Technology- TODAY ***

*** LEADERSHIP ***

Mr. Dinov's experience and leadership has been acquired through a number of challenging positions while acquiring a variety of skills. Prior to establishing Discover, he was President of Discovery Capital, Inc. a privately held financial services/holding company. He focused on Private Placements, Bridge Loans, Initial and Secondary Offerings and M and A activities. Before Discovery, he served as an Investment Banker and Hedge Fund manager at Donald and Company, a long established and prestigious investment-banking firm. 

He was also a Vice-President for Prime Charter, Ltd., where he managed their retail sales operation. His extensive experience is not only in the financial areas, but also as a senior executive for a number of entrepreneurial and global companies focusing on the sales and operational areas of those businesses. This unique combination of skills and experience allows Mr. Dinov to better understand the needs of both the individual and corporate clients while having the ability to analysis a variety of opportunities from Emerging Growth Companies to large Venture Capital projects. 

Professionally, Mr. Dinov has his Series 7 and 63, is a member of the Board of American Friends of TZOHAR and member of the CEO CLUB. He is also active in a number of charitable and community organizations through out the New York area. 
 

*** LINKS ***

Discover Capital's Web sites are located at: 

http://www.discovercapitalholdings.com 

http://www.indianapolissecurities.com. 

To review Discover Capital's SEC filings, Click Here

For a current quote, Click Here
 

*** SELECTED COMPANY & SHAREHOLDER INFORMATION ***

Discover Capital Holdings, Inc.
State of Incorporation: DE
Formerly = Hospitality Concepts, Inc. to 1-90
Formerly = Sunlite Technologies Corp. until 11-01

Shares Outstanding: 6,070,029 as of 2002-08-12 
Estimated Market Cap: 23.855M as of 2002-10-01 
Dividends: None
Transfer Agents: North American Transfer Co., Freeport, NY 11520

Indianapolis Securities, Inc. is a member of the Securities Investor Protection Corporation (SIPC).
 

*** CONTACT ***

Corporate Offices

165 EAB Plaza Center
West Tower, 6th Floor
Uniondale, NY 11556 
tel: (516) 522-2555
email: info@discovercapitalholdings.com 

Broker Inquiries
email: careers@discovercapitalholdings.com 

Investor Relations

Strong and clear communications with shareholders is a priority with Discover Capital Holdings, Corp. We believe in investor involvement and access to our investor relations department. Discover Capital Holdings, Corp.'s investor relations department is made up of senior executives who place a premium on direct communication with our investor public. 

Investor Relations
Mark Cohen
The Pinnacle Group
Great Neck, NY, 11021
Tel: (516) 773-2477
pnaclgrup@aol.com
http://www.pinnaclegroupny.com

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