Gladstone Investment Corporation Invests in SBS Industries, Inc.

MCLEAN, Va., Sept. 1, 2011 /PRNewswire/ -- Gladstone Investment Corporation (Nasdaq: GAIN) ("Gladstone Investment") announced today that it has partnered with management to acquire SBS Industries, Inc. ("SBS"). The capital to support this acquisition consisted of senior debt, preferred equity, and common equity. SBS, founded in 1975 and headquartered in Tulsa, Oklahoma, is a manufacturer and value-added distributor of specialty fasteners and threaded screw products. ClearRidge Capital, LLC advised SBS on the transaction.

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"Gladstone Investment is excited about partnering with this talented and experienced management team. SBS has an impressive track record of high customer satisfaction, resulting in a competitive advantage, and we look forward to working with the management team as they build on that track record," said Dave Dullum, President of Gladstone Investment.

Gladstone Investment Corporation is a publicly traded business development company that seeks to make debt and equity investments in small and mid-sized businesses in the United States in connection with acquisitions, changes in control and recapitalizations. The Company pays monthly dividends to its stockholders. Additional information on this transaction can be found at www.gladstonecompanies.com.

For Investor Relations inquiries related to any of the monthly dividend paying Gladstone funds, please visit www.gladstone.com.

Forward-looking Statements:

The statements in this press release regarding the longer-term prospects of SBS and its management team, and the ability of SBS to grow and expand are "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 to differ from these forward-looking statements include, among others, the duration and effects of current economic instability, the Company's ability to access debt and equity capital and those factors listed under the caption "Risk Factors" of the post-effective amendment of the Company's registration statement on Form N-2(file No. 333-160720), filed with the SEC on June 17, 2011 (the "Form N-2") and the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2011, filed with the SEC on August 1, 2011 (the "Form 10-Q"). The risk factors set forth in the Form N-2 and Form   10-Q under the caption "Risk Factors" are specifically incorporated by reference into this press release. 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.

SOURCE Gladstone Investment Corporation