PSEC – A Prospect Capital Fund

Press Release

Prospect Energy Corporation Announces Financial Results for Third Fiscal Quarter Ended March 31, 2006

NEW YORK, NY — (MARKET WIRE) — 05/10/06 — Prospect Energy Corporation (NASDAQ: PSEC)today announced financial results for its third fiscal quarter ended March31, 2006. Our net investment income for

Prospect Energy Corporation Makes Initial Senior Secured Debt Investment in Conquest Cherokee LLC

NEW YORK, NY — (MARKET WIRE) — 05/09/06 — Prospect Energy Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it has made an initial $3.5 millionsenior secured debt investment in Conquest Cherokee

Prospect Energy Corporation Schedules Third Fiscal Quarter 2006 Earnings Release and Conference Call

NEW YORK, NY — (MARKET WIRE) — 04/26/06 — Prospect Energy Corporation (NASDAQ: PSEC)(the “Company”) announced today that it will report its third fiscalquarter 2006 results for the period ended

Prospect Energy Corporation Makes Senior Secured Debt Investment in Central Illinois Energy, LLC

NEW YORK, NY — (MARKET WIRE) — 04/25/06 — Prospect Energy Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it has made an $8 million senior secureddebt investment in Central Illinois Energy,

Prospect Energy Corporation Makes Senior Secured Debt Investment in Iron Horse Coiled Tubing Inc.

NEW YORK, NY — (MARKET WIRE) — 04/24/06 — Prospect Energy Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it has made a $9.25 million seniorsecured debt investment in Iron Horse Coiled

Prospect Energy Corporation Makes Senior Debt Investment in Charlevoix Energy Trading, LLC

NEW YORK — (MARKET WIRE) — 04/20/06 — Prospect Energy Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it has made a $5.5 million senior debtinvestment in Charlevoix Energy Trading, LLC (“Charlevoix”),

Prospect Energy Corporation Increases Quarterly Dividend to $0.30 per Share

NEW YORK, NY — (MARKET WIRE) — 03/15/06 — Prospect Energy Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it has declared a third fiscal quarter(for the fiscal year ending June 30,

Prospect Energy Corporation Enters Into Initial Revolving Credit Facility

NEW YORK, NY — (MARKET WIRE) — 02/21/06 — Prospect Energy Corporation (NASDAQ: PSEC)announced today that it has entered into an initial revolving creditfacility (the “Facility”) with Bank of Montreal

Prospect Energy Corporation Announces Dismissal of All Dallas Gas Partners Claims

NEW YORK, NY — (MARKET WIRE) — 02/21/06 — Prospect Energy Corporation (NASDAQ: PSEC)announced today that the United States District Judge for the United StatesDistrict Court for the Southern District

Prospect Energy Corporation Makes Senior Secured Debt and Preferred Equity Investment in Appalachian Energy Holdings, LLC

NEW YORK, NY — (MARKET WIRE) — 02/15/06 — Prospect Energy Corporation (NASDAQ: PSEC)(“Prospect”) announced today that it has made a $3.0 million senior secureddebt and a $0.2 million preferred