GAIN Gladstone Investment Corporation

Gladstone Investment Corp. (Nasdaq:GAIN) (the "Company") announced today that the Board of Directors declared its dividends of $0.07 per common share for each of the months of April, May and June of 2006. Monthly dividends will be payable on April 28, 2006, May 31, 2006 and June 30, 2006, to those shareholders of record for those dates on April 20, 2006, May 23, 2006 and June 22, 2006, respectively. Gladstone Investment offers a Dividend Reinvestment Plan (DRIP). For more information regarding the DRIP, please visit our website at www.GladstoneInvestment.com. The Company estimates the tax characteristics of its dividend on a quarterly basis and those estimates are subject to recharacterization. The current dividend is estimated to be a distribution of ordinary income. The actual tax characteristics will be reported to each shareholder on Form 1099 for the year ending December 31, 2006. -0- *T Summary Table for the first quarter of fiscal year 2006: ---------------------------------------------------------------------- Declared X-Dividend Record Date Payment Date Amount ------------- ------------- ------------- -------------- ------------- April 11 April 18 April 20 April 28 $0.07 ------------- ------------- ------------- -------------- ------------- April 11 May 19 May 23 May 31 $0.07 ------------- ------------- ------------- -------------- ------------- April 11 June 20 June 22 June 30 $0.07 ------------- ------------- ------------- -------------- ------------- Total for the Quarter Ending June 30, 2006: $0.21 ---------------------------------------------------------------------- *T Gladstone Investment Corporation is an investment company that seeks to make equity-type investments in small and mid-sized private businesses in the U.S. For more information please visit our website at www.GladstoneInvestment.com. 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," "expects," "estimated," "estimates," "projects" 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 Registration Statement on Form N-2, as filed with the Securities and Exchange Commission on June 22, 2005. 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.