Oxford Lane Capital $0.1948 Preferred Stock Dividend

Oxford Lane Capital Corp. ("Oxford Lane" or "Company")

announced today that the Company's Board of Directors has declared the inaugural dividend on its Series 2017 Term Preferred Shares ("preferred stock") of $0.1948 per share, payable on December 31, 2012 to shareholders of record as of December 21, 2012. This dividend covers the period from November 28, 2012 through December 31, 2012. As previously discussed in the prospectus supplement, dated November 19, 2012, the preferred stock will pay a monthly dividend at a fixed rate of 8.50% of the $25 per share liquidation preference, or $2.125 per share per year. This fixed annual dividend rate is subject to adjustment under certain circumstances, but will not in any case be lower than 8.50% per year.