Source: Prospect Capital Corporation

Prospect Capital Provides $15 Million in Financing to Support Apax Acquisition of TriZetto

NEW YORK, NY--(Marketwire - August 5, 2008) - Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that it has provided $15 million in debt financing to support the take-private acquisition of the TriZetto Group ("TriZetto" or "Company") by an affiliate of private equity firm Apax Partners Worldwide LLP ("Apax").

"Apax has closed repeat investments with Prospect Capital, and we value our relationship with their team," said Adil Haque, a principal at Apax.

"The TriZetto investment offers an excellent opportunity to further our already deep relationship with Apax Partners and RBC Capital Markets, the lead arranger on the debt financing," said Gautam Shirhattikar, a Vice President with Prospect Capital Management. "We continue to view healthcare as an attractive sector to invest, and plan to make additional investments in that sector as part of our diversified sponsor finance business."

Founded in 1997 and headquartered in Newport Beach, California, TriZetto is a leading healthcare information technology company. TriZetto's products touch approximately 50% of all insured Americans. Apax Partners is a global private equity group with almost $40 billion in funds raised and a 30 year track record of healthcare and technology investing. Apax along with the Blue Cross Blue Shield of Tennessee and Regence will invest approximately $900 million of equity underneath Prospect's senior unsecured debt in the acquisition.

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. Prospect Capital's investment objective is to generate both current income and capital appreciation through debt and equity investments.

Prospect Capital has 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 laws 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 Prospect Capital could have a material adverse effect on Prospect Capital and its shareholders.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under Prospect's control, and that Prospect 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 Prospect undertakes no obligation to update any such statement now or in the future.

Contact Information: Please send investment proposals to: Grier Eliasek President and Chief Operating Officer (212) 448-9577