McLean, VA: Gladstone Capital Corp. (NASDAQ: GLAD) announced today that the board of directors has elected Paul Adelgren as a director to fill a vacant position. Mr. Adelgren is presently a Pastor for the Missionary Alliance Church. Before becoming a pastor, Paul Adelgren was vice president of Finance for Williams & Watts, Inc. from 1988 to 1991. He was also the comptroller and corporate treasurer, and responsible for the finance department and the company's annual operating budget.

"We welcome Paul as a new member of our team," said a spokesperson. "We know he will be a great addition to our strong board of directors. Paul has the experience and integrity we desire. Our company is honored to have him as a director."

Paul Adelgren also served in the United States Navy for more than twenty-three years. During his career, he served in eight different commands and ships. His last three assignments were as the director of the Strategic Submarine Support Department, executive officer at the Naval Supply Center and as the director of the Joint Uniform Military Pay System at the Navy Finance Center. Paul Adelgren received numerous awards and medals during his distinguished career in the Navy and he retired as a Captain in the USN to pursue his business career.

Adelgren received a Bachelor of Arts degree from the University of Kansas with a double major in Speech and Political Science. He was a recipient of the NROTC full scholarship and received the ROA Medal for outstanding senior midshipman. He attended Navy Supply Corps School in Athens, GA where he graduated in the top 10% of his class. Paul attended Harvard Business School for his Masters in Business Administration with a dual emphasis in Data Processing Management and Operations Research. Most recently Adelgren attended the Ministerial Study Program, C&MA in Colorado Springs.

For further information contact Skye Breeden or Harry Brill at (703) 286-7000.

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.