PSEC – A Prospect Capital Fund

Prospect Energy Corporation Increases Quarterly Dividend to $0.38 per Share, Representing 90% Year Over Year Growth

July 31, 2006

NEW YORK, NY – (MARKET WIRE) – 07/31/06 – Prospect Energy Corporation
(NASDAQ: PSEC) (“Prospect”) announced today that it has declared a
first fiscal quarter (for the fiscal year ending June 30, 2007)
dividend of $0.38 per share, payable on…