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 July, August and September of 2006. Monthly dividends will be payable on July 31, 2006, August 31, 2006 and September 29, 2006, to those shareholders of record for those dates on July 21, 2006, August 23, 2006 and September 21, 2006, respectively. Gladstone Investment offers a Dividend Reinvestment Plan (DRIP). For more information regarding the DRIP, please visit our website at www.GladstoneInvestment.com. -0- *T Summary Table for the second quarter of fiscal year 2006: ---------------------------------------------------------------------- Declared X-Dividend Record Date Payment Date Amount ---------------------------------------------------------------------- July 11 July 19 July 21 July 31 $0.07 ---------------------------------------------------------------------- July 11 August 21 August 23 August 31 $0.07 ---------------------------------------------------------------------- July 11 September 19 September 21 September 29 $0.07 ---------------------------------------------------------------------- Total for the Quarter Ending September 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. For further information contact our Investor Relations Manager, Kelly Sargent at 703-287-5835. 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," "anticipates," "estimated," "approximately" "seeks" 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 Form 10-K dated March 31, 2006, as filed with the Securities and Exchange Commission on June 13, 2006. 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.