PSEC – A Prospect Capital Fund

Prospect Energy Corporation Makes Senior Secured Debt and Preferred Equity Investment in Appalachian Energy Holdings, LLC

February 15, 2006

NEW YORK, NY – (MARKET WIRE) – 02/15/06 – Prospect Energy Corporation
(NASDAQ: PSEC) (“Prospect”) announced today that it has made a $3.0
million senior secured debt and a $0.2 million preferred equity
investment in Appalachian Energy Holdi…