SC Fundamental LLC Delivers Letter to Capital Southwest Corporation's Board of Directors

Urges Company to Adopt Suggestions to Maximize Shareholder Value, Plans to Withhold Votes for Company's Slate of Directors Unless Concrete Actions are Taken


NEW YORK, June 12, 2008 (PRIME NEWSWIRE) -- SC Fundamental LLC ("SC Fundamental") announced today that it has sent a letter dated June 12, 2008 to Gary Martin and the Board of Directors of Capital Southwest Corporation (Nasdaq:CSWC).

The full text of the letter follows:


 June 12, 2008

 Mr. Gary Martin and the Board of Directors
 Capital Southwest Corporation
 12900 Preston Road, Suite 700
 Dallas, TX 75230

 Dear Mr. Martin and the Board of Directors,

 As shareholders of Capital Southwest, we remain perplexed at
 management's seeming indifference to the large discount to underlying
 net asset value at which shares of the company currently trade. While
 recent efforts by the company have made clearer the underlying value
 of its net assets, Capital Southwest has consistently failed to take
 action to narrow the discount between net asset value and market
 value. ZS Crossover II L.P. has publicly made a number of suggestions
 in letters sent to the board of directors dated January 29, 2008 and
 May 29, 2008. We believe adopting these sensible suggestions would
 help to maximize shareholder value and reduce the large discount to
 net asset value. Until such time as the management and board of
 directors pursues concrete actions, such as those suggested by ZS
 Crossover II L.P., we intend to withhold our votes for the re-election
 of current board members.

 Sincerely,

 SC Fundamental LLC
 on behalf of itself and affiliated investment entities
 David A. Hurwitz, Partner


            

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