Acquisition of Securities of Strategem Capital Corporation

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NEWS RELEASE FOR:
STRATEGEM CAPITAL CORPORATION.

CONTACT:
Ken Morgan
1-604-692-0073
Email: info@strategemcapital.com or visit
www.strategemcapital.com

VANCOUVER, BRITISH COLUMBIA – October 15, 2007

A family trust controlled by Kenneth W. Morgan (the “Trust”), CEO and director of Strategem Capital Corporation (“Strategem” or the “Company”), has acquired 10,000 additional common shares of Strategem in the public market on October 15, 2007.

Morgan and the Trust own directly and indirectly, 649,143 common shares, 35,323 warrants and 190,000 stock options. Assuming the exercise of such warrants and options Morgan and the Trust would own 17% of Strategem’s common shares. Mr. Morgan has control over all the securities referred to above.

The shares were acquired for investment purposes only. Morgan may, from time to time, acquire or dispose of additional shares of Strategem, including the possible exercise of warrants and stock options.

About Strategem Capital

Strategem Capital Corporation is a publicly-traded merchant bank focused on the development of emerging companies with growth potential. The Company invests in debt and/or equity positions in these companies.

This release and prior releases are available on the Company’s Internet web site located at www.strategemcapital.com.

BY ORDER OF THE BOARD OF DIRECTORS

“Kenneth W. Morgan”
Kenneth W. Morgan, CA, CPA
President, CEO and Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.