MCG Capital Announces $15.5 Million Saleof Equity Investment in Coastal Sunbelt

ARLINGTON, Va.--(Business Wire)--
MCG Capital Corporation (Nasdaq: MCGC) ("MCG") announced today that it signed a
definitive agreement to sell its equity investment in Coastal Sunbelt, LLC for
approximately $15.5 million and to provide debt financing to support the
acquisition of Coastal Sunbelt Holding, Inc. ("Coastal") by its management team
and MSouth Equity Partners, L.P. MCG`s net cash proceeds after providing
additional financing will be approximately $15.3 million. In January 2007, MCG
made its original equity investment in Coastal and provided debt financing. The
cost and fair value of MCG`s equity investment in Coastal Sunbelt, LLC as of
March 31, 2009 was $15.0 million and $15.6 million, respectively. Final closing
of the transaction is subject to customary closing conditions and is expected to
occur in mid-August 2009.

"MCG has enjoyed working with a talented team at Coastal, which has done a
terrific job of building a strong platform for future growth," said Doug
Gilbert, Managing Director at MCG. "We look forward to our continued involvement
as a lender to Coastal."

"This equity sale, to be consummated at approximately 99% of the
previously-reported fair value, is another step forward in our strategic plan to
preserve liquidity and deleverage the balance sheet as we monetize assets at or
near their fair value," said Steven F. Tunney, MCG`s President and CEO.

Coastal is an independent distributor of wholesale and fresh-cut produce to
restaurants, institutions and grocery stores in the Washington, DC/Baltimore
metropolitan area.

About MCG Capital Corporation

MCG Capital Corporation is a solutions-focused commercial finance company
providing capital and advisory services to middle-market companies throughout
the United States. Our investment objective is to achieve current income and
capital gains. Our capital is generally used by our portfolio companies to
finance acquisitions, recapitalizations, buyouts, organic growth and working
capital. For more information, please visit www.mcgcapital.com.

Forward-looking Statements:

Statements in this press release regarding management`s future expectations,
beliefs, intentions, goals, strategies, plans or prospects, including statements
relating to MCG`s current strategic plan, including the preservation of
liquidity and deleveraging its balance sheet, and its ability to monetize assets
at or near their fair value may constitute forward-looking statements for
purposes of the safe harbor protection under applicable securities
laws.Forward-looking statements can be identified by terminology such as
"anticipate," "believe," "could," "could increase the likelihood," "estimate,"
"expect," "intend," "is planned," "may," "should," "will," "will enable," "would
be expected," "look forward," "may provide," "would" or similar terms,
variations of such terms or the negative of those terms.Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
including those risks, uncertainties and factors referred to in MCG`s Quarterly
Report on Form 10-Q for the quarter ended March 31, 2009 filed with the
Securities and Exchange Commission under the section "Risk Factors," as well as
other documents that may be filed by MCG from time to time with the Securities
and Exchange Commission.As a result of such risks, uncertainties and factors,
actual results may differ materially from any future results, performance or
achievements discussed in or implied by the forward-looking statements contained
herein.MCG is providing the information in this press release as of this date
and assumes no obligations to update the information included in this press
release or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

MCG Capital Corporation
Marshall Murphy, 703-562-7110
MMurphy@MCGCapital.com

Copyright Business Wire 2009