NEW YORK, NY–( EMWNews – April 1, 2008) – Prospect Capital Corporation (NASDAQ: PSEC)

(“Prospect”) announced today that TLOGH, L.P. (“TLOGH”), has repaid

Prospect’s $15.5 million loan. Prospect has realized an approximately 17%

cash on cash internal rate of return (“IRR”) on the TLOGH investment,

representing a 1.2 times cash on cash multiple.

TLOGH represents the seventh successful realization to date in Prospect’s

portfolio. These seven realizations have averaged an approximately 55% IRR

and 1.5 times cash on cash multiple for Prospect. These returns do not

include equity interests still held by Prospect in three of the seven

portfolio companies that have yet to be monetized.

“TLOGH has been a solid investment for Prospect and our shareholders, and

we look forward to future successful monetizations from our portfolio to

build additional shareholder value,” said Grier Eliasek, President and

Chief Operating Officer of Prospect.

ABOUT PROSPECT CAPITAL CORPORATION

Prospect Capital Corporation (www.prospectstreet.com) is a closed-end

investment company that lends to and invests in private and microcap public

businesses. Prospect Capital’s investment objective is to generate both

current income and capital appreciation through debt and equity

investments.

Prospect Capital has elected to be treated as a business development

company under the Investment Company Act of 1940 (“1940 Act”). We are

required to comply with a series of regulatory requirements under the 1940

Act as well as applicable NASDAQ, federal and state laws and regulations.

We have elected to be treated as a regulated investment company under the

Internal Revenue Code of 1986. Failure to comply with any of the laws and

regulations that apply to Prospect Capital could have a material adverse

effect on Prospect Capital and its shareholders.

This press release contains forward-looking statements within the meaning

of the Private Securities Litigation Reform Act of 1995. Any such

statements, other than statements of historical fact, are likely to be

affected by other unknowable future events and conditions, including

elements of the future that are or are not under the Company’s control, and

that the Company may or may not have considered; accordingly, such

statements cannot be guarantees or assurances of any aspect of future

performance. Actual developments and results are highly likely to vary

materially from these estimates and projections of the future. Such

statements speak only as of the time when made, and the Company undertakes

no obligation to update any such statement now or in the future.