MCLEAN, Va.--(BUSINESS WIRE)--Sept. 19, 2001--Gladstone Capital Corporation (NASDAQ:GLAD, the "Company") announced that seven officers of the Company have exercised options to purchase an aggregate of 586,670 shares of common stock at $15 per share. Each of the officers exercised their options under the Company's 2001 Equity Incentive Plan by delivering a promissory note for the full purchase price. The total principal amount of all of the promissory notes was $8.8 million.

A Company spokesperson said that the Company believes that these actions show the Company's officers have confidence in the Company's future.

About Gladstone Capital Corporation

Gladstone Capital Corporation is a closed-end, non-diversified management investment company under the Investment Company Act of 1940. The Company's investment objectives are to achieve a high level of current income by investing in debt securities, consisting primarily of senior notes, senior subordinated notes and junior subordinated notes, of established private businesses that are backed by leveraged buyout funds, venture capital funds or others, with a particular emphasis on senior subordinated notes. The Company also seeks to provide its stockholders with long-term capital growth through the appreciation in the value of warrants or other equity instruments that it may receive when it makes loans.

This press release may include statements that may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements with regard to the future performance of the Company. Words such as "believes" and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements inherently involve certain risks and uncertainties, although they are based on the Company's current plans that are believed to be reasonable as of the date of this press release. Factors that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements include, among others, those factors listed under the caption "Risk factors" of the Company's prospectus dated August 23, 2001, as filed with the Securities and Exchange Commission on August 24, 2001. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT: Gladstone Capital Corporation
David Gladstone, 703/276-0305