Gladstone Investment Corporation Announces That Two Independent Proxy Advisory Firms Recommend the NAV Proposal

Gladstone Investment Corporation GAIN announced today that two independent proxy advisory firms -- ISS Corporate Services, Inc., a wholly-owned subsidiary of Institutional Shareholder Services Inc., and Glass Lewis & Co. -- each recently issued a report recommending that stockholders of the Company vote "For" the proposal included in the proxy statement for the Company's 2011 Annual Meeting of Stockholders (the "Annual Meeting"), which would allow the Company to issue and sell shares of its common stock below its then current net asset value per share, subject to certain limitations described in the proxy statement. The Annual Meeting is scheduled for Thursday, August 4, 2011 at 11:00 a.m. local time at the Sheraton Premiere Tysons Corner, located at 8661 Leesburg Pike, Vienna, Virginia. ISS stated in its report: "The proposal grants significant discretion to management to offer securities at below NAV -- either publicly or privately -- with limits on the amount of shares to be offered. The sale of shares at a price below NAV will initially dilute outstanding shares. However, approval of this proposal may allow the board to invest in attractive opportunities as they arise, and may give the company flexibility to forestall the potential forced sale of assets at unfavorable prices. While shareholders may be concerned that the sale of shares at a price below NAV will initially dilute outstanding shares, certain safeguards are in place, including that shareholder approval of the proposal would only be valid for one year, and that any sale of shares at a price below NAV must be approved by a majority of the company's disinterested directors."*