PSEC – A Prospect Capital Fund

Prospect Energy Corporation Announces Characterization of 2006 Dividends

February 5, 2007

NEW YORK, NY – (MARKET WIRE) – 02/05/07 – Prospect Energy Corporation
(NASDAQ: PSEC) (the “Company”) announced today that its 2006 dividends
of $1.405 per share were a distribution of ordinary income. Of that
amount, $0.26414 per share were…