GAIN Gladstone Investment Corporation

Gladstone Investment Corp. (NASDAQ: GAIN) (the �Company�) announced today that the Board of Directors declared monthly distributions of $0.04 per common share for each of the months of April, May and June of 2009.

Summary Table for Distributions for the Quarter Ending June 30, 2009:

� � � � � Declared � � X-Date � � Record Date � � Payment Date � � Cash Distribution � April 16 � � April 23 � � April 27 � � May 8 � � $0.04 � April 16 � � May 18 � � May 20 � � May 29 � � $0.04 � April 16 � � June 18 � � June 22 � � June 30 � � $0.04 � � � � � � � � �

David Dullum, President of the Company, commented, �Our portfolio of investments has been performing well and continues to do so in this recessionary period. Our former revolving line of credit provided by Deutsche Bank matured on April 16th and unfortunately the bank was unwilling to renew or extend our facility on terms acceptable to us. As we announced earlier this week, we elected to refinance our line of credit with a new facility from BB&T and Key Bank. In order to go forward with this new reduced line of credit, we sold a large number of our senior syndicated loans. The loan sales, along with funding from the new facility arranged by BB&T, provided us with the cash to pay off the Deutsche Bank line of credit and move forward under the BB&T facility. We are currently seeking additional lenders to join and expand the availability under the BB&T facility. Under the new facility with BB&T and Key Bank, our new bank lenders want us to conserve our capital to grow the portfolio and support our existing investments. Therefore we are pleased to announce that we expect to continue our cash distributions to shareholders but commensurate with our net investment income. Over the coming months we will strive to continue to build our portfolio and net investment income so that we can increase our distributions to shareholders. With our new line of credit in place and the markets turning around, our company is now positioned to move forward with our investment strategy.�

Gladstone Investment offers a Dividend Reinvestment Plan (DRIP). For more information regarding the DRIP, please visit our website at www.GladstoneInvestment.com.

Gladstone Investment Corporation is a specialty finance company that invests in debt securities consisting primarily of senior term loans, second term lien loans, and senior subordinate term loans in small and medium sized businesses. For more information please visit our website at www.GladstoneInvestment.com.

For further information contact Investor Relations at 703-287-5893.

Forward-Looking Statements

The statements in this press release regarding the performance of our portfolio of investments, the expansion of availability under the BB&T facility through the addition of additional lenders, and our goals to build the portfolio, increase net investment income and increase distributions to shareholders are forward-looking statements that involve a number of known and unknown risks and uncertainties. Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, the effects of the current state of the economy and the capital markets on our portfolio companies� financial positions and operating results and, in turn, our operating results, our ability to identify new lenders who will agree to join the BB&T facility under its current terms, and to obtain the consent of the existing committed lenders to the addition of any new lenders to the BB&T facility, and our ability to raise capital to grow our portfolio of investments. Additional factors that could cause actual results to differ materially from those stated or implied by our forward-looking statements are disclosed in the Risk Factors sections of our filings with the Securities and Exchange Commission. These forward-looking statements represent our judgment as of the time of the issuance of this press release. We disclaim any intent or obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.