Prospect Capital Declares 18th Consecutive Quarterly Dividend Increase, Representing a 17.5% Current Dividend Yield

NEW YORK, NY, Mar 24 (MARKET WIRE) --
Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect" or "Company")
announced today that it has declared a third fiscal quarter (for the
fiscal year ending June 30, 2009) dividend of $0.405 per share.

This dividend marks the Company's 18th consecutive quarterly increase. The
dividend now represents an approximately 17.5% current annualized dividend
yield based on the closing stock price for March 23, 2009 of $9.27. The
ex-dividend date is Friday, March 27, 2009. The record date is Tuesday,
March 31, 2009. The payment date is Monday, April 20, 2009.

The Company is revising its guidance for net investment income for the
quarter ending March 31, 2009. The company is projecting net investment
income of $0.38 to $0.41 per share for the quarter.

Dividend History:

Dividend Per Share Quarter Ended
------------------ -------------
$0.405 March 31, 2009
$0.40375 December 31, 2008
$0.4025 September 30, 2008
$0.40125 June 30, 2008
$0.40 March 31, 2008
$0.395 December 31, 2007
$0.3925 September 30, 2007
$0.39 June 30, 2007
$0.3875 March 31, 2007
$0.385 December 31, 2006
$0.38 September 30, 2006
$0.34 June 30, 2006
$0.30 March 31, 2006
$0.28 December 31, 2005
$0.20 September 30, 2005
$0.15 June 30, 2005
$0.125 March 31, 2005
$0.10 December 31, 2004

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. Our investment objective is to generate both current
income and long-term capital appreciation through debt and equity
investments.

We have 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 rules 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 us could have an adverse effect on us and our
shareholders.

This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, whose safe harbor
for forward-looking statements does not apply to business development
companies. Any such statements, other than statements of historical fact,
are highly likely to be affected by other unknowable future events and
conditions, including elements of the future that are or are not under our
control, and that we 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 we undertake no
obligation to update any such statement now or in the future.

For additional information, contact:

Grier Eliasek
President and Chief Operating Officer
Email Contact
Telephone (212) 448-0702

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