PSEC – A Prospect Capital Fund

Press Release

Prospect Energy Corporation Makes Senior Secured Debt Investment in Cypress Consulting Services, Inc.

NEW YORK, NY — (MARKET WIRE) — 09/07/06 — Prospect Energy Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it has made a $4.3 million senior securedinvestment in Cypress Consulting Services, Inc.

Prospect Energy Corporation Sponsors Buyout of NRG Manufacturing, Inc., as Sole Source Capital Solution

NEW YORK, NY — (MARKET WIRE) — 09/05/06 — Prospect Energy Corporation (NASDAQ: PSEC)(“Prospect”) announced today that Prospect has acquired a controllingequity interest in and has provided senior secured debt

Prospect Energy Corporation Closes Public Offering of Common Stock Including Over-Allotment Option

NEW YORK, NY — (MARKET WIRE) — 08/28/06 — Prospect Energy Corporation (NASDAQ: PSEC)(“Prospect”) announced that it has completed a public offering of 5,716,650shares of common stock (including 745,650 shares

Prospect Energy Corporation Prices Public Offering of Common Stock

NEW YORK, NY — (MARKET WIRE) — 08/10/06 — Prospect Energy Corporation(NASDAQ: PSEC) (“Prospect”) announced that it priced a public offering of4,971,000 shares of common stock at $15.30 per share,

Prospect Energy Corporation Increases Quarterly Dividend to $0.38 per Share, Representing 90% Year Over Year Growth

NEW YORK, NY — (MARKET WIRE) — 07/31/06 — Prospect Energy Corporation(NASDAQ: PSEC) (“Prospect”) announced today that it has declared a firstfiscal quarter (for the fiscal year ending June 30,

Prospect Energy Corporation Closes Larger $50 Million Revolving Credit Facility

NEW YORK, NY — (MARKET WIRE) — 07/26/06 — Prospect Energy Corporation (NASDAQ: PSEC)(“Prospect”) announced today that Prospect has closed a $50 millionrevolving credit facility (the “Facility”) with HSH Nordbank

William J. Gremp Joins Prospect Energy Corporation’s Board of Directors

NEW YORK, NY — (MARKET WIRE) — 07/20/06 — Prospect Energy Corporation(NASDAQ: PSEC) (“Prospect”) announced today that William J. Gremp hasjoined Prospect’s Board of Directors. “We are delighted to have

Prospect Energy Corporation Increases Quarterly Dividend to $0.34 per Share, Representing 127% Year Over Year Growth

NEW YORK, NY — (MARKET WIRE) — 06/14/06 — Prospect Energy Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it has declared a fourth fiscal quarter(for the fiscal year ending June 30,

Prospect Energy Corporation Provides Business Updates

NEW YORK, NY — (MARKET WIRE) — 05/22/06 — Prospect Energy Corporation (NASDAQ: PSEC)(“Prospect”) announced today that Vastardis Compliance Services (“VastardisCompliance”) has informed Prospect that Vastardis Compliance is windingdown its

Prospect Energy Corporation Expands Credit Facility

NEW YORK, NY — (MARKET WIRE) — 05/11/06 — Prospect Energy Corporation (NASDAQ: PSEC),(“Prospect”) announced today that it has increased its existing revolvingcredit facility (the “Facility”) to $30 million. Bank