Kohlberg Capital Corporation Receives Shareholder Approval to Sell Newly Issued Shares...

Kohlberg Capital Corporation Receives Shareholder Approval to Sell Newly Issued
Shares of Common Stock

NEW YORK, July 23, 2008 (PRIME NEWSWIRE) -- Kohlberg Capital Corporation
(Nasdaq:KCAP) announced that at a special meeting of shareholders on July 21,
2008, the company received shareholder approval to sell newly issued shares of
its common stock in one or more offerings at prices below the net asset value
per share at the time of such sales. Any such sale of common stock would require
the prior approval of the company's Board of Directors.

As a business development company, Kohlberg Capital is precluded from selling
newly issued shares of its common stock equity at less than net asset value per
share without shareholder approval or unless such shares are issued through a
rights offering.

"We would like to thank our shareholders for their support in voting for this
proposal. Having shareholder approval to issue shares at prices below net asset
value gives us the flexibility to raise capital more efficiently and continue to
grow our asset base," commented Chris Lacovara, Chairman of the Board. "We
continue to believe that current market conditions are creating attractive
opportunities for us to invest in assets that will yield accretive returns and
support our dividend. We intend to remain judicious in sizing any equity
offering below net asset value, balancing the potential discount to the trading
value of our stock against the opportunities for accretive net investment income
and earnings per share."

About Kohlberg Capital Corporation (KCAP):

Kohlberg Capital Corporation is a publicly traded, internally managed business
development company. Our middle market investment business originates,
structures, finances and manages a portfolio of term loans, mezzanine
investments and selected equity securities in middle market companies. Our
wholly-owned portfolio company, Katonah Debt Advisors, manages CLO Funds that
invest in broadly syndicated corporate term loans, high-yield bonds and other
credit instruments.

Kohlberg Capital Corporation's filings with the Securities and Exchange
Commission, earnings releases, press releases and other financial, operational
and governance information are available on the Company's website at
www.kohlbergcapital.com.

The Kohlberg Capital logo is available at
http://www.primenewswire.com/newsroom/prs/?pkgid=3121

Safe Harbor Statement Under the Private Securities Litigation Reform Act of
1995:

This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the Securities Exchange
Act. The matters discussed in this press release, as well as in future oral and
written statements by management of Kohlberg Capital Corporation, that are
forward-looking statements are based on current management expectations that
involve substantial risks and uncertainties which could cause actual results to
differ materially from the results expressed in, or implied by, these
forward-looking statements. Forward-looking statements relate to future events
or our future financial performance. We generally identify forward-looking
statements by terminology such as "may," "will," "should," "expects," "plans,"
"anticipates," "could," "intends," "target," "projects," "contemplates,"
"believes," "estimates," "predicts," "potential" or "continue" or the negative
of these terms or other similar words. Important assumptions include our ability
to originate new investments, achieve certain margins and levels of
profitability, the availability of additional capital, and the ability to
maintain certain debt to asset ratios. In light of these and other
uncertainties, the inclusion of a projection or forward-looking statement in
this press release should not be regarded as a representation by us that our
plans or objectives will be achieved. Further information about factors that
could affect our financial and other results is included in our filings with the
Securities and Exchange Commission. We do not undertake to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise, except as required to be reported under the rules
and regulations of the Securities and Exchange Commission.

KCAP-G

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CONTACT: Kohlberg Capital Corporation
Denise Rodriguez, Investor Relations
212-455-8300
info@kohlbergcapital.com