PSEC – A Prospect Capital Fund

Prospect Capital Corporation Schedules Third Fiscal Quarter Earnings Release and Conference Call

May 3, 2007

NEW YORK, NY — (MARKET WIRE) — 05/03/07 — Prospect Capital Corporation (NASDAQ: PSEC)(the “Company”) announced today that it will report its third fiscalquarter results for the period ended March 31, 2007, on Thursday, May 10,2007, after the close of the financial markets.

The Company will host a conference call on Friday, May 11, 2007, at 11:00AM Eastern Time. The conference call dial-in number will be 877-407-0782.A recording of the conference call will be available for approximately 7days. To hear a replay, call 877-660-6853 and use Account # 286 andConference ID code # 241103.

About Prospect Capital Corporation

Prospect Capital Corporation (www.prospectstreet.com/) is a closed-endinvestment company that lends to and invests in energy-related businesses.Prospect’s investment objective is to generate both current income andcapital appreciation through debt and equity investments.

Prospect has elected to be treated as a business development company underthe Investment Company Act of 1940 (“1940 Act”). We are required to complywith a series of regulatory requirements under the 1940 Act as well asapplicable NASDAQ, federal and state laws and regulations. We have electedto be treated as a regulated investment company under the Internal RevenueCode of 1986. Failure to comply with any of the laws and regulations thatapply to Prospect could have a material adverse effect on Prospect and itsshareholders.

This press release contains forward-looking statements within the meaningof the Private Securities Litigation Reform Act of 1995. Any suchstatements, other than statements of historical fact, are likely to beaffected by other unknowable future events and conditions, includingelements of the future that are or are not under the Company’s control, andthat the Company may or may not have considered; accordingly, suchstatements cannot be guarantees of any aspect of future performance.Actual developments and results are highly likely to vary materially fromthese estimates and projections of the future. Such statements speak onlyas of the time when made, and the Company undertakes no obligation toupdate any such statement now or in the future.

Contact:Please send investment proposals to:Prospect Capital ManagementGrier Eliasekgrier@prospectstreet.com(212) 448-0702