PSEC – A Prospect Capital Fund

Prospect Capital Announces 20% IRR Initial Monetization of Cougar Pressure Control, Bringing Prospect to Five Realizations to Date Averaging a 59% IRR

August 17, 2007

NEW YORK, NY – (MARKET WIRE) – 08/17/07 – Prospect Capital Corporation
(NASDAQ: PSEC) (“Prospect”) announced today that Arctic Acquisition
Corp., dba Cougar Pressure Control (“Cougar”), has repaid the
unamortized portion of Prospe…