Saratoga Investment Corp. Announces Form of Previously Declared Dividend

Saratoga Investment Corp.

announced today the form in which the dividend declared by the Company's board of directors on November 12, 2010 will be paid and the results of its shareholders' elections relating to the dividend. The dividend of $4.40 per share was payable on December 29, 2010 to shareholders of record as of November 19, 2010. Shareholders had until December 20, 2010 to elect whether to receive the dividend in cash (up to an aggregate maximum cash amount of approximately $1.18 million, or approximately 10% of the total dividend paid) or in shares of common stock. Due to the original terms of the dividend, shareholders who elected to receive cash will receive a combination of cash and common stock.