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<SEC-DOCUMENT>0001010549-09-000077.txt : 20090206
<SEC-HEADER>0001010549-09-000077.hdr.sgml : 20090206
<ACCEPTANCE-DATETIME>20090206143822
ACCESSION NUMBER:		0001010549-09-000077
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20081231
FILED AS OF DATE:		20090206
DATE AS OF CHANGE:		20090206

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CAPITAL SOUTHWEST CORP
		CENTRAL INDEX KEY:			0000017313
		IRS NUMBER:				751072796
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	814-00061
		FILM NUMBER:		09576589

	BUSINESS ADDRESS:	
		STREET 1:		12900 PRESTON RD STE 700
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75230
		BUSINESS PHONE:		9722338242

	MAIL ADDRESS:	
		STREET 1:		12900 PRESTON RD
		STREET 2:		SUITE 700
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75230
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>cswc10q123108.htm
<TEXT>
<html>
    <head>
        <title></title>
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    </head>

    <body text="#000000" vlink="#800000" link="#0000ff" bgcolor="#ffffff">
        <p style="FONT-SIZE: 10pt; BORDER-TOP-STYLE: double; BORDER-TOP-COLOR: #000000; FONT-FAMILY: 'Times New Roman', Times, serif">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px; FONT-FAMILY: 'TMS RMN'" align="center"><b><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">UNITED STATES</font></b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px; FONT-FAMILY: 'TMS RMN'" align="center"><b><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">SECURITIES AND EXCHANGE COMMISSION</font></b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px; FONT-FAMILY: 'TMS RMN'" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">Washington, D.C. 20549</font></p>

        <p style="MARGIN-TOP: 4pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="center"><b><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">FORM 10-Q</font></b></p>

        <p></p>

        <p></p>

        <p align="left">(Mark One)</p>

        <p></p>

        <p></p>

        <p align="left"><strong><font size="4">[X]</font></strong> <font size="4">QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p>

        <p></p>

        <p></p>

        <p align="left"><font size="4">For the quarterly period ended <strong>December 31, 2008</strong></font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 11.5pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-WEIGHT: normal">OR</font></b></p>

        <p></p>

        <p></p>

        <p align="justify"><font size="4">[&nbsp; ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p>

        <p align="justify"><font size="4">For the transition period from &hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;..to &hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;..</font>&nbsp;</p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">Commission File Number:</font> <b><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">814-61</font></b>&nbsp;</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">CAPITAL SOUTHWEST CORPORATION</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 9pt; FONT-FAMILY: 'TIMES NEW ROMAN'">(Exact name of registrant as specified in its charter)</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"></p>

        <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
            <tr>
                <td width="239">
                    <p align="center"><strong>Texas</strong></p>
                </td>

                <td width="365">
                </td>

                <td width="345">&nbsp;&nbsp; <strong>75-1072796</strong></td>

                <td width="4">
                </td>
            </tr>

            <tr>
                <td width="239">
                    <p align="center">(State or other jurisdiction of incorporation</p>
                </td>

                <td width="365">
                </td>

                <td width="345"><font size="2">&nbsp;</font><font size="3">(I.R.S. Employer</font></td>

                <td width="4">
                </td>
            </tr>

            <tr>
                <td width="239">
                    <p align="center"><font size="2"><font size="3">or&nbsp;organization)</font>&nbsp;</font></p>
                </td>

                <td width="365">
                </td>

                <td width="345">Identification No.)</td>

                <td width="4">
                </td>
            </tr>
        </table>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td width="48%">
                    <p align="left"><font face="Times New Roman"><strong>12900 Preston Road, Suite 700, Dallas, Texas</strong></font></p>
                </td>

                <td width="147">
                </td>

                <td width="330"><strong>&nbsp;&nbsp; 75230</strong></td>

                <td width="2%">
                </td>
            </tr>

            <tr>
                <td width="48%">
                    <p align="left"><font size="3">(Address of principal</font> <font size="3">executive offices)</font></p>
                </td>

                <td width="147">
                </td>

                <td width="330">(Zip Code)</td>

                <td width="2%">
                </td>
            </tr>
        </table>
        <br>
        <br>

        <p align="center"></p>

        <p align="center"><b><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b><b>Registrant's telephone number, including area code:</b> <font size="2"><b><font style="FONT-SIZE: 9pt; FONT-FAMILY: 'TIMES NEW ROMAN'">(</font></b><b>972) 233-8242</b></font></p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
        Yes&nbsp;&nbsp; <b><u>X&nbsp;&nbsp;</u></b> No <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of &ldquo;accelerated filer and large accelerated filer&rdquo; in Rule 12b-2 of the Exchange Act. (Check One):&nbsp;&nbsp;</p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 1.5in; FONT-FAMILY: 'Times New Roman', Times, serif" align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Large accelerated filer ____&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accelerated filer&nbsp;&nbsp;<u>&nbsp; <b>X</b></u> <b><u>&nbsp;</u> &nbsp;&nbsp;&nbsp;&nbsp;</b> <b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b> Non-accelerated filer ____</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes&nbsp; ___&nbsp;&nbsp;No&nbsp;<u>&nbsp;&nbsp; <b>X</b>&nbsp;&nbsp;</u></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left">Indicate the number of shares outstanding of each of the issuer&rsquo;s classes of common stock, as of the latest practicable date.</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 1.5in; FONT-FAMILY: 'Times New Roman', Times, serif" align="center">3,741,638 shares of Common Stock, $1 par value, as of January 31, 2009</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p></p>

        <p></p>

        <p style="FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center; EEPStyleName: Bold Center Head 12pt TNR" align="center"><b>TABLE OF CONTENTS</b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"></p>

        <p align="right"><u>Page No.</u></p>

        <p align="left"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="4"><font face="Times New Roman" size="3">PART I.&nbsp;&nbsp;FINANCIAL INFORMATION</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">
                </td>

                <td colspan="2">&nbsp;</td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" colspan="2"><font face="Times New Roman" size="3">&nbsp;ITEM 1.&nbsp;&nbsp;&nbsp; Consolidated Financial Statements</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left" width="29">
                </td>

                <td align="left" width="16">
                </td>

                <td align="left" width="887">&nbsp;</td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="887"><font face="Times New Roman" size="3">Consolidated Statements of Financial Condition</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="887"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2008 (Unaudited) and March 31, 2008</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="3">3</font></p>
                </td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left" width="29">
                </td>

                <td align="left" width="16">
                </td>

                <td align="left" width="887">&nbsp;</td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="887"><font face="Times New Roman" size="3">Consolidated Statements of Operations (Unaudited)</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="887"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For the three and nine months ended December 31, 2008 and</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3" height="13">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="887"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2007</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="3">4</font></p>
                </td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left" width="29">
                </td>

                <td align="left" width="16">
                </td>

                <td align="left" width="887">&nbsp;</td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="887"><font face="Times New Roman" size="3">Consolidated Statements of Changes in Net Assets</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="887"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For the nine months ended December 31, 2008 (Unaudited) and year ended</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="887"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; March 31, 2008</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="3">5</font></p>
                </td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left" width="29">
                </td>

                <td align="left" width="16">
                </td>

                <td align="left" width="887">&nbsp;</td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="887"><font face="Times New Roman" size="3">Consolidated Statements of Cash Flows (Unaudited)</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="887"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For the three and nine months ended December 31, 2008 and</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="887"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2007</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="3">6</font></p>
                </td>
            </tr>

            <tr>
                <td colspan="3">
                </td>

                <td colspan="2">&nbsp;</td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="887"><font face="Times New Roman" size="3">Consolidated Statement of Investments</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="887"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2008</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="3">7</font></p>
                </td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left" width="29">
                </td>

                <td align="left" width="16">
                </td>

                <td align="left" width="887">&nbsp;</td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="887"><font face="Times New Roman" size="3">Notes to Consolidated Financial Statements</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="3">12</font></p>
                </td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left" width="29">
                </td>

                <td align="left" width="16">
                </td>

                <td align="left" width="887">&nbsp;</td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" colspan="2"><font face="Times New Roman" size="3">&nbsp;ITEM 2.&nbsp;&nbsp;&nbsp; Management&rsquo;s Discussion and Analysis of Financial</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="887"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Condition and Results of Operations</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="3">17</font></p>
                </td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left" width="29">
                </td>

                <td align="left" width="16">
                </td>

                <td align="left" width="887">&nbsp;</td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" colspan="2"><font face="Times New Roman" size="3">&nbsp;ITEM 3.&nbsp;&nbsp;&nbsp; Quantitative and Qualitative Disclosure About</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="887"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Market Risk</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="3">20</font></p>
                </td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left" width="29">
                </td>

                <td align="left" width="16">
                </td>

                <td align="left" width="887">&nbsp;</td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" colspan="2"><font face="Times New Roman" size="3">&nbsp;ITEM 4.&nbsp;&nbsp;&nbsp; Controls and Procedures</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="3">21</font></p>
                </td>
            </tr>

            <tr>
                <td align="left" colspan="4">&nbsp;</td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left" colspan="4"><font face="Times New Roman" size="3">PART II.&nbsp;&nbsp;OTHER INFORMATION</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left" width="29">
                </td>

                <td align="left" width="16">
                </td>

                <td align="left" width="887">&nbsp;</td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" colspan="2"><font face="Times New Roman" size="3">&nbsp;ITEM 1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal Proceedings</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="3">21</font></p>
                </td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left" width="29">
                </td>

                <td align="left" width="16">
                </td>

                <td align="left" width="887">&nbsp;</td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" colspan="2"><font face="Times New Roman" size="3">&nbsp;ITEM 1A. Risk Factors</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="3">21</font></p>
                </td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left" width="29">
                </td>

                <td align="left" width="16">
                </td>

                <td align="left" width="887">&nbsp;</td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" colspan="2"><font face="Times New Roman" size="3">&nbsp;ITEM 2&nbsp;&nbsp;&nbsp;&nbsp; Unregistered Sales of Equity Securities and Use of Proceeds</font></td>

                <td>
                    <p align="center"><font face="Times New Roman" size="3">22</font></p>
                </td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left" width="29">
                </td>

                <td align="left" width="16">
                </td>

                <td align="left" width="887">&nbsp;</td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" bgcolor="#ccdbe3">
                <td align="left">
                </td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" colspan="2"><font face="Times New Roman" size="3">&nbsp;ITEM 6.&nbsp;&nbsp;&nbsp; Exhibits</font></td>

                <td>
                    <p align="left"><font face="Times New Roman" size="3">22</font></p>
                </td>
            </tr>

            <tr>
                <td align="left" colspan="4">&nbsp;</td>

                <td>
                </td>
            </tr>

            <tr bgcolor="#ccdbe3">
                <td align="left" colspan="4">&nbsp;Signatures&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>

                <td>
                    <p align="center">23</p>
                </td>
            </tr>
        </table>
        <br>
        <br>

        <p align="left"></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"></p>
        <br>
        <br>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><!-- PAGE BREAK  --><br>
        <u>PART I. FINANCIAL INFORMATION</u></p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Item 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Financial Statem<a name="A001"></a>ents</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="40%" align="center" border="0">
            <tr>
                <td width="40%">
                    <p align="center">CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES</p>
                </td>
            </tr>

            <tr>
                <td width="40%">
                    <p align="center"><u>Consolidated Statements of Financial Condition</u></p>
                </td>
            </tr>
        </table>
        <br>
        <br>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="67%"><font face="Times New Roman" size="3"><strong>Assets</strong></font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="0" colspan="3">
                    <font face="Times New Roman" size="3">&nbsp;</font>

                    <p align="center"><font face="Times New Roman" size="3"><u>December 31, 2008</u>&nbsp;</font></p>
                </td>

                <td align="right" colspan="3">
                    <font face="Times New Roman" size="3">&nbsp;</font>

                    <p align="center"><font face="Times New Roman" size="3"><u>March 31, 2008</u>&nbsp;</font></p>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                <font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td colspan="3">
                    <p align="center">(Unaudited)</p>
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Investments at market or fair value</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Companies more than 25% owned</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Cost: December 31, 2008 - $29,058,246</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;March 31, 2008 - $28,758,246)</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27">
                </td>

                <td align="right" width="91"><font face="Times New Roman" size="3">$348,933,470</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="26">
                </td>

                <td align="right" width="84"><font face="Times New Roman" size="3">$410,026,178</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Companies 5% to 25% owned</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Cost: December 31, 2008 - $20,412,243,</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;March 31, 2008 - $20,412,243)</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="91"><font face="Times New Roman" size="3">63,301,258</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="84"><font face="Times New Roman" size="3">54,895,381</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Companies less than 5% owned</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Cost: December 31, 2008 - $38,588,702,</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;March 31, 2008 - $31,856,977)</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="91"><font face="Times New Roman" size="3">44,004,359</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="84"><font face="Times New Roman" size="3">82,648,943</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Cost: December 31, 2008- $88,059,191,</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;March 31, 2008 - $81,027,466)</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="91"><font face="Times New Roman" size="3">456,239,087</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="84"><font face="Times New Roman" size="3">547,570,502</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Cash and cash equivalents</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="91"><font face="Times New Roman" size="3">21,574,396</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="84"><font face="Times New Roman" size="3">31,327,758</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Receivables</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="91"><font face="Times New Roman" size="3">339,670</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="84"><font face="Times New Roman" size="3">156,322</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Other assets</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="91"><font face="Times New Roman" size="3">7,886,002</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="84"><font face="Times New Roman" size="3">7,630,486</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Totals</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="91"><font face="Times New Roman" size="3">$486,039,155</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="26">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="84"><font face="Times New Roman" size="3">$586,685,068</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3"><strong>Liabilities and Shareholders' Equity</strong></font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr>
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right" width="27">
                </td>

                <td align="right" width="91">
                </td>

                <td align="left" width="34">
                </td>

                <td align="right" width="26">
                </td>

                <td align="right" width="84">
                </td>

                <td align="left" width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Other liabilities</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27">
                </td>

                <td align="right" width="91"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp; 6,437,275</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="26">
                </td>

                <td align="right" width="84"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp; 1,187,796</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Deferred income taxes</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="91"><font face="Times New Roman" size="3">1,863,558</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="84"><font face="Times New Roman" size="3">1,797,058</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="91"><font face="Times New Roman" size="3">8,300,833</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="84"><font face="Times New Roman" size="3">2,984,854</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Shareholders' equity</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $1 par value: authorized,</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,000,000 shares; issued, 4,326,516 shares</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;at December 31, 2008 and March 31, 2008</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="91"><font face="Times New Roman" size="3">4,326,516</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="84"><font face="Times New Roman" size="3">4,326,516</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional capital</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="91"><font face="Times New Roman" size="3">125,902,832</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="84"><font face="Times New Roman" size="3">115,687,153</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undistributed net investment income</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="91"><font face="Times New Roman" size="3">3,265,726</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="84"><font face="Times New Roman" size="3">7,036,929</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undistributed net realized loss on investments</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="91"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="84"><font face="Times New Roman" size="3">(2,860,118</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized appreciation of investments</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="91"><font face="Times New Roman" size="3">368,179,896</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="84"><font face="Times New Roman" size="3">466,543,036</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock - at cost 584,878 shares at December</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31, 2008 and 437,365 shares at March 31, 2008</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="91"><font face="Times New Roman" size="3">(23,936,648</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="84"><font face="Times New Roman" size="3">(7,033,302</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets at market or fair value, equivalent</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to $127.68 per share at December 31, 2008 on the</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,741,638 shares outstanding and $150.09</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share at March 31, 2008 on the 3,889,151</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="27">
                </td>

                <td width="91">
                </td>

                <td width="34">
                </td>

                <td width="26">
                </td>

                <td width="84">
                </td>

                <td width="33">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares outstanding</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="91"><font face="Times New Roman" size="3">477,738,322</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="84"><font face="Times New Roman" size="3">583,700,214</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Totals</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="27">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="91"><font face="Times New Roman" size="3">$486,039,155</font></td>

                <td align="left" width="34"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="26">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="84"><font face="Times New Roman" size="3">$586,685,068</font></td>

                <td align="left" width="33"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p style="FONT-SIZE: 11.5pt; MARGIN: 0pt -0.5in 0pt 0in; TEXT-INDENT: 0px; TEXT-DECORATION: underline" align="center"></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"></p>

        <p></p>

        <p></p>

        <p align="center"><i>The accompanying Notes are an integral part of these Consolidated Financial Statements</i></p>

        <p></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font size="2">3</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p></p>

        <p align="center"></p>

        <table cellspacing="0" cellpadding="0" width="40%" align="center" border="0">
            <tr>
                <td width="40%">
                    <p align="center">CAPITAL SOUTHWEST CORPORATION</p>
                </td>
            </tr>

            <tr>
                <td width="40%">
                    <p align="center">AND SUBSIDIARIES</p>
                </td>
            </tr>

            <tr>
                <td width="40%">
                    <p align="center"><font size="2"><u>Consolidate</u></font><a name="A002"></a><font size="2"><u>d Statements of Operations</u></font></p>
                </td>
            </tr>

            <tr>
                <td width="40%">
                    <p align="center">(Unaudited)</p>
                </td>
            </tr>
        </table>
        <br>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="50%"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td colspan="4">
                    <p align="center"><font face="Times New Roman" size="3">Three Months Ended&nbsp;</font></p>
                </td>

                <td align="left" width="2%">
                </td>

                <td align="right" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td colspan="4">
                    <p align="center"><font face="Times New Roman" size="3">Nine Months Ended&nbsp;</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="3">December 31&nbsp;</font></p>
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center">December 31</p>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="3">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="89">
                    <p align="center"><font face="Times New Roman" size="3">2007</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="3">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="3">2007</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Investment income:</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="8">
                </td>

                <td width="89">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="right"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp;&nbsp; 375,602</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8">
                </td>

                <td align="right" width="89"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp; 552,950</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="right"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp;1,052,625</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="right"><font face="Times New Roman" size="3">$&nbsp;&nbsp; 1,797,079</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">9,614,029</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="89"><font face="Times New Roman" size="3">1,838,757</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">10,949,508</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">3,003,651</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management and directors' fees</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">268,680</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="89"><font face="Times New Roman" size="3">222,449</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">810,788</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">673,849</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font> </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">10,258,311</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="89"><font face="Times New Roman" size="3">2,614,156</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">12,812,921</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">5,474,579</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Operating expenses:</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="8">
                </td>

                <td width="89">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">509,114</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="89"><font face="Times New Roman" size="3">380,247</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">1,287,033</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">945,468</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net pension benefit</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">(63,306</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="89"><font face="Times New Roman" size="3">(81,837</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">(189,923</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">(245,508</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">315,432</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="89"><font face="Times New Roman" size="3">481,128</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">1,119,870</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">1,034,286</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font> </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">761,240</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="89"><font face="Times New Roman" size="3">779,538</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">2,216,980</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">1,734,246</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>

                <td align="right" width="8">
                </td>

                <td align="right" width="89">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Income before income taxes</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">9,497,071</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="89"><font face="Times New Roman" size="3">1,834,618</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">10,595,941</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">3,740,333</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Income tax expense</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">25,771</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="89"><font face="Times New Roman" size="3">28,500</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">110,401</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">82,660</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3"><strong>Net investment income</strong></font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="3">$&nbsp;&nbsp; 9,471,300</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="89"><font face="Times New Roman" size="3">$&nbsp; 1,806,118</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="3">$ 10,485,540</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="3">$&nbsp;&nbsp; 3,657,673</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Proceeds from disposition of investments</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="right"><font face="Times New Roman" size="3">$ 20,655,024</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8">
                </td>

                <td align="right" width="89"><font face="Times New Roman" size="3">$670,340</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="right"><font face="Times New Roman" size="3">$ 20,655,025</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="right"><font face="Times New Roman" size="3">$&nbsp;&nbsp; 1,398,892</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Cost of investments sold</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">4,670,340</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="89"><font face="Times New Roman" size="3">1,158,868</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">4,718,381</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">1,158,868</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Realized gain (loss) on investments</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="8">
                </td>

                <td width="89">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;before income taxes</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">15,984,684</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="89"><font face="Times New Roman" size="3">(488,528</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">15,936,644</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">240,024</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Income tax expense</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">5,222,964</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="89"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">5,222,964</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3"><strong>Net realized gain (loss) on investments</strong></font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">10,761,720</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="89"><font face="Times New Roman" size="3">(488,528</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">10,713,680</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">240,024</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3"><strong>Net decrease in unrealized</strong></font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="8">
                </td>

                <td width="89">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;<strong>appreciation of investments</strong></font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">(67,135,903</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="89"><font face="Times New Roman" size="3">(64,798,599</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">(98,363,139</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">(185,779,143</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr>
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="8">
                </td>

                <td width="89">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3"><strong>Net realized and unrealized loss</strong></font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="8">
                </td>

                <td width="89">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;<strong>on investments</strong></font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="3">$(56,374,183</font></td>

                <td valign="middle" align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="8">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="89"><font face="Times New Roman" size="3">$(65,287,127</font></td>

                <td valign="middle" align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="3">$(87,649,459</font></td>

                <td valign="middle" align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="3">$(185,539,119</font></td>

                <td valign="middle" align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3"><strong>Decrease in net assets from operations</strong></font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="3">$(46,902,883</font></td>

                <td valign="middle" align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="8">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="89"><font face="Times New Roman" size="3">$(63,481,009</font></td>

                <td valign="middle" align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="3">$(77,163,919</font></td>

                <td valign="middle" align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="3">$(181,881,446</font></td>

                <td valign="middle" align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"></p>
        <br>
        <br>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11.5pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><i><font size="2">The accompanying Notes are an integral part of these Consolidated Financial Statements</font></i></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TMS RMN'" align="center">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font size="2">4</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade>
        </div>

        <p align="center"></p>

        <table cellspacing="0" cellpadding="0" width="40%" align="center" border="0">
            <tr>
                <td width="40%">
                    <p align="center">CAPITAL SOUTHWEST CORPORATION</p>
                </td>
            </tr>

            <tr>
                <td width="40%">
                    <p align="center">AND SUBSIDIARIES</p>
                </td>
            </tr>

            <tr>
                <td width="40%">
                    <p align="center"><u>Consolidated S</u><a name="A003"></a><u>tatements of Changes in Net Assets</u></p>
                </td>
            </tr>
        </table>
        <br>

        <p align="center"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="636">
                <font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="126">
                    <p align="center">Nine Months Ended</p>
                </td>

                <td align="left" width="3%">
                </td>

                <td align="right" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="126">
                    <p align="center"><font face="Times New Roman" size="3">Year Ended</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636">
                <font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="126">
                    <p align="center"><font face="Times New Roman" size="3">December 31, 2008</font></p>
                </td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="126">
                    <p align="center"><font face="Times New Roman" size="3">March 31, 2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636">
                <font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="17">
                </td>

                <td width="126">
                    <p align="center">(Unaudited)</p>
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="126">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3">Operations</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="17">
                </td>

                <td width="126">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="126">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="17">
                </td>

                <td align="right" width="126"><font face="Times New Roman" size="3">$&nbsp;&nbsp; 10,485,540</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="right" width="126"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp; 3,715,200</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gain on investments</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="3">10,713,680</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="3">240,024</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net decrease in unrealized appreciation</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="17">
                </td>

                <td width="126">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="126">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of investments</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="126"><font face="Times New Roman" size="3">(98,363,139</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="126"><font face="Times New Roman" size="3">(142,969,698</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in net assets from operations</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="3">(77,163,919</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="3">(139,014,474</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr>
                <td align="left" width="636">&nbsp;</td>

                <td align="left" width="13">
                </td>

                <td align="left" width="8">
                </td>

                <td width="17">
                </td>

                <td width="126">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="126">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3">Distributions from:</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="17">
                </td>

                <td width="126">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="126">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undistributed net investment income</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="3">(12,256,745</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="3">(2,333,291</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gains deemed distributed</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="17">
                </td>

                <td width="126">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="126">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to shareholders</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="3">(8,646,560</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left" width="636">&nbsp;</td>

                <td align="left" width="13">
                </td>

                <td align="left" width="8">
                </td>

                <td width="17">
                </td>

                <td width="126">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="126">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3">Capital share transactions:</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="17">
                </td>

                <td width="126">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="126">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allocated increase in share value for</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="17">
                </td>

                <td width="126">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="126">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;deemed distribution</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="3">8,646,560</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercise of employee stock options</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="3">231,390</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in pension plan funded status</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="3">(1,178,764</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock option expense</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="3">362,118</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="3">263,664</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="126"><font face="Times New Roman" size="3">(16,903,346</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="126"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in net assets</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="3">(105,961,892</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="126"><font face="Times New Roman" size="3">(142,031,475</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr>
                <td align="left" width="636">&nbsp;</td>

                <td align="left" width="13">
                </td>

                <td align="left" width="8">
                </td>

                <td align="right" width="17">
                </td>

                <td align="right" width="126">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right" width="126">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom" height="16">
                <td align="left" width="636"><font face="Times New Roman" size="3">Net assets, beginning of period</font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="126"><font face="Times New Roman" size="3">583,700,214</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="126"><font face="Times New Roman" size="3">725,731,689</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left" width="636">&nbsp;</td>

                <td align="left" width="13">
                </td>

                <td align="left" width="8">
                </td>

                <td align="right" width="17">
                </td>

                <td align="right" width="126">
                </td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right" width="126">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="636"><font face="Times New Roman" size="3"><strong>Net assets, end of period</strong></font></td>

                <td align="left" width="13"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="17">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="126"><font face="Times New Roman" size="3">$ 477,738,322</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="126"><font face="Times New Roman" size="3">$ 583,700,214</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p></p>

        <p></p>

        <p align="center"><em>The accompanying Notes are an integral part of these Consolidated Financial Statements</em></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

        <p></p>
        <!-- PAGE BREAK  -->

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font size="2">5</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000">
        </div>

        <p align="center"></p>

        <table cellspacing="0" cellpadding="0" width="40%" align="center" border="0">
            <tr>
                <td width="40%">
                    <p align="center">CAPITAL SOUTHWEST CORPORATION</p>
                </td>
            </tr>

            <tr>
                <td width="40%">
                    <p align="center">AND SUBSIDIARIES</p>
                </td>
            </tr>

            <tr>
                <td width="40%">
                    <p align="center"><u>Consolidated Stateme</u><a name="A004"></a><a name="A005"></a><u>nts of Cash Flows</u></p>
                </td>
            </tr>

            <tr>
                <td width="40%">
                    <p align="center">(Unaudited)</p>
                </td>
            </tr>
        </table>
        <br>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="45%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td colspan="4">
                    <p align="center"><font face="Times New Roman" size="3">Three Months Ended&nbsp;</font></p>
                </td>

                <td align="left" width="2%">
                </td>

                <td align="right" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td colspan="4">
                    <p align="center"><font face="Times New Roman" size="3">Nine Months Ended&nbsp;</font></p>
                </td>

                <td align="left" width="2%">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="3">December&nbsp;31</font></p>
                </td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="3">December 31&nbsp;</font></p>
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="104">
                    <p align="center"><font face="Times New Roman" size="3">2008</font></p>
                </td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="104">
                    <p align="center"><font face="Times New Roman" size="3">2007</font></p>
                </td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="104">
                    <p align="center"><font face="Times New Roman" size="3">2008</font></p>
                </td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="104">
                    <p align="center"><font face="Times New Roman" size="3">2007</font></p>
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3"><strong>Cash flows from operating activities</strong></font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="6">
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Decrease in net assets from</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="6">
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;operations</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6">
                </td>

                <td align="right" width="104"><font face="Times New Roman" size="3">$(46,902,883</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right">
                </td>

                <td align="right" width="104"><font face="Times New Roman" size="3">$(63,481,009</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right">
                </td>

                <td align="right" width="104"><font face="Times New Roman" size="3">$(77,163,919</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right">
                </td>

                <td align="right" width="104"><font face="Times New Roman" size="3">$(181,881,446</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Adjustments to reconcile increase in net</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="6">
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;assets from operations to net cash</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="6">
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;provided by operating activities:</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="6">
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;Proceeds from disposition of investments</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">20,655,024</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">670,339</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">20,655,025</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">1,398,891</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;Purchases of securities</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(7,646,287</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(817,186</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(11,750,107</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(10,032,280</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;Maturities of securities</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">154,500</font></td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;Depreciation and amortization</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">10,547</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">8,089</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">30,454</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">18,770</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;Net pension benefit</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(63,306</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(81,837</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(189,923</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(245,508</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;Realized (gain) loss on investments before</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="6">
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;income taxes</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(15,984,685</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">488,528</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(15,936,644</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(240,024</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;Taxes payable on behalf of shareholders</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="6">
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp; on deemed distribution</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">5,222,964</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">5,222,964</font></td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;Net decrease in unrealized appreciation</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="6">
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;of investments</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">67,135,903</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">64,798,599</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">98,363,139</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">185,779,143</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;Stock option expense</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">141,525</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">87,989</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">362,118</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">175,676</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp; (Increase) decrease in receivables</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">283,669</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(155,215</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(183,347</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">79,720</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp; (Increase) decrease in other assets</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">16,374</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(11,451</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(7,373</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(41,859</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;Increase (decrease) in other liabilities</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(16,216</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">132,468</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">6,776</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">57,084</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;Decrease in accrued pension cost</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(34,467</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(68,934</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(101,301</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;Increase in deferred income taxes</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">22,200</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">28,500</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">66,500</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">85,500</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Net cash provided by (used in) operating</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="6">
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;activities</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">22,874,829</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">1,633,347</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">19,406,729</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">(4,793,134</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3"><strong>Cash flows from financing activities</strong></font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="6">
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Distributions from undistributed net</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="6">
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;investment income</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(10,701,085</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(1,555,661</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(12,256,745</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(2,333,291</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Proceeds from exercise of employee</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="6">
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;stock options</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">231,390</font></td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Purchase of treasury stock</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">(16,903,346</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Net cash used in financing activities</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">(10,701,085</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">(1,555,661</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">(29,160,091</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">(2,101,901</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr>
                <td colspan="3">&nbsp;</td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Net increase (decrease) in cash and cash</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="6">
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;equivalents</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">12,173,744</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">77,686</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(9,753,362</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">(6,895,035</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Cash and cash equivalents at beginning</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="6">
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;of period</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">9,400,652</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">31,871,482</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">31,327,758</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="104"><font face="Times New Roman" size="3">38,844,203</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Cash and cash equivalents at end of period</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="104"><font face="Times New Roman" size="3">$ 21,574,396</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="104"><font face="Times New Roman" size="3">$ 31,949,168</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">$</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="104"><font face="Times New Roman" size="3">$ 21,574,396</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="104"><font face="Times New Roman" size="3">$&nbsp;&nbsp; 31,949,168</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td width="6">
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3"><strong>Supplemental disclosure of cash flow information:</strong></font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="6">
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Cash paid during the period for:</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="6">
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;Interest</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6">
                </td>

                <td align="right" width="104">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &ndash;</td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="right" width="104"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ndash;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="right" width="104">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &ndash;</td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                    <p align="right">&nbsp;</p>
                </td>

                <td align="right" width="104"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &ndash;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;Income taxes</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="6">
                </td>

                <td align="right" width="104"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3,571</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &ndash;</font></td>

                <td align="left">
                </td>

                <td align="right">
                </td>

                <td align="right" width="104"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3,571</font></td>

                <td align="left">
                </td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="104"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ndash;</font></td>

                <td align="left">
                </td>
            </tr>

            <tr>
                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td width="6">
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>

                <td>
                </td>

                <td width="104">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" colspan="14"><font face="Times New Roman" size="3">Noncash financing activities not included herein consist of reinvestment of dividends and distributions of $8,646,560.&nbsp;&nbsp;</font></td>

                <td>
                </td>
            </tr>
        </table>
        <br>
        <br>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"></p>
        <br>

        <p></p>

        <p></p>

        <p align="center"><em>The accompanying Notes are an integral part of these Consolidated Financial Statements</em></p>

        <p></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TMS RMN'" align="center">&nbsp;</p>

        <p></p>
        <!-- PAGE BREAK  -->

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font size="2">6</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000">
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">CAPITAL SOUTHWEST CORPORATION</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">AND SUBSIDIARIES</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><u>Consolidated Statement of Investments</u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31, 2008</p>

        <p></p>

        <p style="FONT-SIZE: 11.5pt; MARGIN: 0pt -0.5in 0pt 0in; TEXT-INDENT: 0px" align="justify"></p>

        <p style="FONT-SIZE: 11.5pt; MARGIN: 0pt -0.5in 0pt 0in; TEXT-INDENT: 0px" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom" height="13">
                <th style="BORDER-BOTTOM: black 1px solid" width="334">
                    <p align="left"><font size="2">Company&nbsp;</font></p>
                </th>

                <th style="BORDER-BOTTOM: black 1px solid" width="414">
                    <p align="left"><font size="2">Investment (a)&nbsp;</font></p>
                </th>

                <th style="BORDER-BOTTOM: black 1px solid" width="86"><font size="2">Cost&nbsp;&nbsp;</font></th>

                <td style="BORDER-BOTTOM: black 1px solid" width="36">&nbsp;</td>

                <th style="BORDER-BOTTOM: black 1px solid" width="83"><font size="2">Value (b)</font></th>
            </tr>

            <tr valign="bottom" height="28">
                <td align="left" width="334"><font face="Times New Roman" size="2"><strong>&dagger;ALAMO GROUP INC.</strong></font></td>

                <td align="left" width="414"><font face="Times New Roman" size="2">2,830,300 shares common stock (acquired 4-1-73 thru 5-25-07)</font></td>

                <td align="right" width="86"><font face="Times New Roman" size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,190,937</font></td>

                <td align="right" width="36">
                </td>

                <td align="right" width="83"><font face="Times New Roman" size="2">$&nbsp;&nbsp;&nbsp;&nbsp; 30,425,725</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="334"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Seguin, Texas</strong></font></td>

                <td width="414">
                </td>

                <td width="86">
                </td>

                <td width="36">
                </td>

                <td width="83">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="334"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tractor-mounted mowing and mobile</font></td>

                <td width="414">
                </td>

                <td width="86">
                </td>

                <td width="36">
                </td>

                <td width="83">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="334"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;excavation equipment for governmental,</font></td>

                <td width="414">
                </td>

                <td width="86">
                </td>

                <td width="36">
                </td>

                <td width="83">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="334"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;industrial and agricultural markets; street-</font></td>

                <td width="414">
                </td>

                <td width="86">
                </td>

                <td width="36">
                </td>

                <td width="83">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="334"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;sweeping equipment for municipalities</font></td>

                <td width="414">
                </td>

                <td width="86">
                </td>

                <td width="36">
                </td>

                <td width="83">
                </td>
            </tr>
        </table>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom" height="12">
                <th width="335">&nbsp;</th>

                <th width="407">
                </th>

                <th width="92">
                </th>

                <td width="33">
                </td>

                <th width="86">
                </th>
            </tr>

            <tr valign="bottom">
                <td align="left" width="335"><font face="Times New Roman" size="2"><strong>ALL COMPONENTS, INC.</strong></font></td>

                <td align="left" width="407"><font face="Times New Roman" size="2">8.25% subordinated note due 2012 (acquired 6-27-07)</font></td>

                <td align="right" width="92"><font face="Times New Roman" size="2">6,000,000</font></td>

                <td align="right" width="33">
                </td>

                <td align="right" width="86"><font face="Times New Roman" size="2">3,000,000</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="335"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Austin, Texas</strong></font></td>

                <td align="left" width="407"><font face="Times New Roman" size="2">150,000 shares Series A Convertible Preferred Stock, convertible into</font></td>

                <td width="92">
                </td>

                <td width="33">
                </td>

                <td width="86">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="335"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Electronics contract manufacturing;</font></td>

                <td align="left" width="407"><font face="Times New Roman" size="2">&nbsp;&nbsp; 600,000 shares of common stock at $0.25 per share (acquired 9-16-94)</font></td>

                <td align="right" width="92"><font face="Times New Roman" size="2">150,000</font></td>

                <td align="right" width="33">
                </td>

                <td align="right" width="86"><font face="Times New Roman" size="2">1</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="335"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;distribution and production of memory</font></td>

                <td align="left" width="407"><font face="Times New Roman" size="2">Warrants to purchase 350,000 shares of common stock at $11.00 per</font></td>

                <td width="92">
                </td>

                <td width="33">
                </td>

                <td width="86">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="335"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and other components for computer</font></td>

                <td align="left" width="407"><font face="Times New Roman" size="2">&nbsp;&nbsp; share, expiring 2017 (acquired 6-27-07)</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="92"><font face="Times New Roman" size="2">--&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="33">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="86"><font face="Times New Roman" size="2">--&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="335"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;manufacturers, retailers and value-added</font></td>

                <td align="left" width="407"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="92"><font face="Times New Roman" size="2">6,150,000</font></td>

                <td align="right" width="33">
                </td>

                <td align="right" width="86"><font face="Times New Roman" size="2">3,000,001</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="335"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;resellers.</font></td>

                <td width="407">
                </td>

                <td width="92">
                </td>

                <td width="33">
                </td>

                <td width="86">
                </td>
            </tr>
        </table>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <th width="335">&nbsp;</th>

                <th width="407">
                </th>

                <th width="91">
                </th>

                <td width="35">
                </td>

                <th width="85">
                </th>
            </tr>

            <tr valign="bottom">
                <td align="left" width="335"><font face="Times New Roman" size="2"><strong>ATLANTIC CAPITAL</strong></font></td>

                <td align="left" width="407"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="91"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="35">
                </td>

                <td align="right" width="85"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="335"><font face="Times New Roman" size="2"><strong>BANCSHARES, INC.</strong></font></td>

                <td align="left" width="407"><font face="Times New Roman" size="2">300,000 shares common stock (acquired 4-10-07)</font></td>

                <td align="right" width="91"><font face="Times New Roman" size="2">3,000,000</font></td>

                <td align="right" width="35">
                </td>

                <td align="right" width="85"><font face="Times New Roman" size="2">3,000,000</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="335"><font face="Times New Roman" size="2">&nbsp;&nbsp;<strong>&nbsp;&nbsp;&nbsp;Atlanta, Georgia</strong></font></td>

                <td width="407">
                </td>

                <td width="91">
                </td>

                <td width="35">
                </td>

                <td width="85">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="335"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holding company of Atlantic Capital Bank</font></td>

                <td width="407">
                </td>

                <td width="91">
                </td>

                <td width="35">
                </td>

                <td width="85">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="335"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a full service commercial bank.</font></td>

                <td width="407">
                </td>

                <td width="91">
                </td>

                <td width="35">
                </td>

                <td width="85">
                </td>
            </tr>
        </table>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <th width="336">&nbsp;</th>

                <th width="407">
                </th>

                <th width="88">
                </th>

                <td width="38">
                </td>

                <th width="84">
                </th>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2"><strong>BALCO, INC.</strong></font></td>

                <td align="left" width="407"><font face="Times New Roman" size="2">445,000 shares common stock and 60,920 shares Class B non-voting</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="38">
                </td>

                <td align="right" width="84"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Wichita, Kansas</strong></font></td>

                <td align="left" width="407"><font face="Times New Roman" size="2">&nbsp;&nbsp; common stock (acquired 10-25-83 and 5-30-02)</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">624,920</font></td>

                <td align="right" width="38">
                </td>

                <td align="right" width="84"><font face="Times New Roman" size="2">6,000,000</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Specialty architectural products used in</font></td>

                <td width="407">
                </td>

                <td width="88">
                </td>

                <td width="38">
                </td>

                <td width="84">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the construction and remodeling of</font></td>

                <td width="407">
                </td>

                <td width="88">
                </td>

                <td width="38">
                </td>

                <td width="84">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;commercial and institutional buildings.</font></td>

                <td width="407">
                </td>

                <td width="88">
                </td>

                <td width="38">
                </td>

                <td width="84">
                </td>
            </tr>
        </table>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <th width="336">&nbsp;</th>

                <th width="408">
                </th>

                <th width="90">
                </th>

                <td width="36">
                </td>

                <th width="83">
                </th>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2"><strong>BOXX TECHNOLOGIES, INC.</strong></font></td>

                <td align="left" width="408"><font face="Times New Roman" size="2">3,125,354 shares Series B Convertible Preferred Stock, convertible</font></td>

                <td align="right" width="90"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="36">
                </td>

                <td align="right" width="83"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Austin, Texas</strong></font> </td>

                <td align="left" width="408"><font face="Times New Roman" size="2">&nbsp;&nbsp; into 3,125,354 shares of common stock at $0.50 per share</font></td>

                <td width="90">
                </td>

                <td width="36">
                </td>

                <td width="83">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Workstations for computer graphic</font></td>

                <td align="left" width="408"><font face="Times New Roman" size="2">&nbsp;&nbsp; (acquired 8-20-99 thru 8-8-01)</font></td>

                <td align="right" width="90"><font face="Times New Roman" size="2">1,500,000</font></td>

                <td align="right" width="36">
                </td>

                <td align="right" width="83"><font face="Times New Roman" size="2">2&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;imaging and design.</font></td>

                <td width="408">
                </td>

                <td width="90">
                </td>

                <td width="36">
                </td>

                <td width="83">
                </td>
            </tr>
        </table>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <th width="336">&nbsp;</th>

                <th width="408">
                </th>

                <th width="91">
                </th>

                <td width="35">
                </td>

                <th width="83">
                </th>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2"><strong>CMI HOLDING COMPANY, INC.</strong></font></td>

                <td align="left" width="408"><font face="Times New Roman" size="2">10% convertible subordinated note, due 2009 , (acquired 7-2-07</font></td>

                <td align="right" width="91"><font face="Times New Roman" size="2">2,363,347&nbsp;</font></td>

                <td align="right" width="35">
                </td>

                <td align="right" width="83"><font face="Times New Roman" size="2">1,000,000&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2"><strong>&nbsp;&nbsp;&nbsp;&nbsp; Richardson, Texas</strong></font></td>

                <td align="left" width="408"><font face="Times New Roman" size="2">&nbsp;&nbsp; thru 10-9-07)</font></td>

                <td width="91">
                </td>

                <td width="35">
                </td>

                <td width="83">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owns Chase Medical, which develops</font></td>

                <td align="left" width="408"><font face="Times New Roman" size="2">2,327,658 shares Series A Convertible Preferred Stock, convertible</font></td>

                <td width="91">
                </td>

                <td width="35">
                </td>

                <td width="83">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and sells devices used in cardiac surgery</font></td>

                <td align="left" width="408"><font face="Times New Roman" size="2">&nbsp;&nbsp; into 2,327,658 shares of common stock at $1.72 per share (acquired</font></td>

                <td width="91">
                </td>

                <td width="35">
                </td>

                <td width="83">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to relieve congestive heart failure; develops</font></td>

                <td align="left" width="408"><font face="Times New Roman" size="2">&nbsp;&nbsp; 8-21-02 and 6-4-03)</font></td>

                <td align="right" width="91"><font face="Times New Roman" size="2">4,000,000</font></td>

                <td align="right" width="35">
                </td>

                <td align="right" width="83"><font face="Times New Roman" size="2">2&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and supports cardiac imaging systems.</font></td>

                <td align="left" width="408"><font face="Times New Roman" size="2">Warrants to purchase 109,012 shares of common stock at $1.72 per</font></td>

                <td width="91">
                </td>

                <td width="35">
                </td>

                <td width="83">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td align="left" width="408"><font face="Times New Roman" size="2">&nbsp;&nbsp; share, expiring 2012 (acquired 4-7-04)</font></td>

                <td align="right" width="91"><font face="Times New Roman" size="2">&ndash;</font></td>

                <td width="35">
                </td>

                <td width="83">
                    <p align="right"><font size="2">&ndash;</font></p>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td width="408"><font size="2">Warrant to purchase 431,982 shares of &nbsp;Series A-1 Convertible&nbsp;</font></td>

                <td width="91">
                </td>

                <td width="35">
                </td>

                <td width="83">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td align="left" width="408"><font face="Times New Roman" size="2">&nbsp;&nbsp; Preferred Stock at $1.72 per share, expiring 2017 (acquired 7-2-07)</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="91"><font face="Times New Roman" size="2">&ndash;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="35">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" width="83">
                    <p align="right"><font size="2">&ndash;</font></p>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="408"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="91"><font face="Times New Roman" size="2">6,363,347</font></td>

                <td align="right" width="35">
                </td>

                <td align="right" width="83"><font face="Times New Roman" size="2">1,000,002</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p style="FONT-SIZE: 11.5pt; MARGIN: 0pt -0.5in 0pt 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 11.5pt; MARGIN: 0pt -0.5in 0pt 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p style="FONT-SIZE: 11.5pt; MARGIN: 0pt -0.5in 0pt 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font size="2">7</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade>
        </div>

        <p style="FONT-SIZE: 11.5pt; MARGIN: 0pt -0.5in 0pt 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TMS RMN'" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">CAPITAL SOUTHWEST CORPORATION</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">AND SUBSIDIARIES</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><u>Consolidated Statement of Investments</u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">December 31, 2008</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">(continued)</p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td style="BORDER-BOTTOM: black 1px solid" width="26%"><font size="2"><strong>Company</strong></font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left" width="1%">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left" width="1%">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="69">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 1px solid" width="386">
                    <p align="left"><font size="2"><strong>Investment (a)</strong>&nbsp;</font></p>
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left" width="17">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="11">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 1px solid" width="87">
                    <p align="center"><font size="2"><strong>Cost</strong>&nbsp;</font></p>
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left" width="29">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="7">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80">
                    <p align="center"><font size="2"><strong>Value (b</strong>)</font></p>
                </td>
            </tr>

            <tr valign="bottom" height="22">
                <td align="left" width="26%"><font face="Times New Roman" size="3"><strong>CINATRA CLEAN TECHNOLOGIES, INC.</strong></font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="69"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="386">
                    <p align="left"><font face="Times New Roman" size="2">10% subordinated secured promissory note (acquired 7-14-08</font></p>
                </td>

                <td align="left" width="17">
                </td>

                <td align="right" width="11"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="87">
                </td>

                <td align="left" width="29">
                </td>

                <td align="right" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="80">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;<strong><font size="2">Houston, Texas</font></strong></font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="69"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="386">
                    <p align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp; <font size="2">thru 12-08-08)</font></font></p>
                </td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="11">
                </td>

                <td align="right" width="87"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp;&nbsp;4,263,000</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="7">
                </td>

                <td align="right" width="80"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp;&nbsp;4,263,000</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;<font size="2">Cleans above ground oil storage tanks</font></font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="69"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="386">
                    <p align="left"><font face="Times New Roman" size="3"><font size="2">1,128,649 shares Series A Convertible Preferred Stock, convertible</font></font></p>
                </td>

                <td align="left" width="17">
                </td>

                <td align="right" width="11"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="87">
                </td>

                <td align="left" width="29">
                </td>

                <td align="right" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="80">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;<font size="2">with a patented, automated system.</font></font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="69"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="386">
                    <p align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp; <font size="2">into 1,128,649 shares common stock at $1.00 per share</font></font></p>
                </td>

                <td align="left" width="17">
                </td>

                <td align="right" width="11"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="87">
                </td>

                <td align="left" width="29">
                </td>

                <td align="right" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="80">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="69"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="386">
                    <p align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp; <font size="2">(acquired 7-14-08 and 11-19-08)</font></font></p>
                </td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="11"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="87"><font face="Times New Roman" size="3">1,128,649</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="7">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" width="80">
                    <p align="right">1,128,649</p>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="69"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="386">
                </td>

                <td align="left" width="17">
                </td>

                <td align="right" width="11"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="87"><font face="Times New Roman" size="3">5,391,649</font></td>

                <td align="left" width="29">
                </td>

                <td width="7">
                </td>

                <td width="80">
                    <p align="right">5,391,649</p>
                </td>
            </tr>
        </table>
        <br>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2"><strong>DENNIS TOOL COMPANY</strong></font></td>

                <td align="left" width="409"><font face="Times New Roman" size="2">20,725 shares 5% Convertible Preferred Stock, convertible into</font></td>

                <td align="right" width="89"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="38">
                </td>

                <td align="right" width="81"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" height="13">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Houston, Texas</strong></font></td>

                <td align="left" width="409"><font face="Times New Roman" size="2">&nbsp;&nbsp; 20,725 shares of common stock at $48.25 per share (acquired 8-10-98)</font></td>

                <td align="right" width="89"><font face="Times New Roman" size="2">999,981</font></td>

                <td align="right" width="38">
                </td>

                <td align="right" width="81"><font face="Times New Roman" size="2">999,981</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Polycrystalline diamond compacts (PDCs)</font></td>

                <td align="left" width="409"><font face="Times New Roman" size="2">140,137 shares common stock (acquired 3-7-94 and 8-10-98)</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="89"><font face="Times New Roman" size="2">2,329,963</font></td>

                <td align="right" width="38">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="81"><font face="Times New Roman" size="2">3,200,000</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;used in oil field drill bits and in mining</font></td>

                <td align="left" width="409"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="89"><font face="Times New Roman" size="2">3,329,944</font></td>

                <td align="right" width="38">
                </td>

                <td align="right" width="81"><font face="Times New Roman" size="2">4,199,981</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and industrial applications.</font></td>

                <td width="409">
                </td>

                <td width="89">
                </td>

                <td width="38">
                </td>

                <td width="81">
                </td>
            </tr>
        </table>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <th width="336">&nbsp;</th>

                <th width="410">
                </th>

                <th width="88">
                </th>

                <td width="38">
                </td>

                <th width="81">
                </th>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2"><strong>&dagger;ENCORE WIRE CORPORATION</strong></font></td>

                <td align="left" width="410"><font face="Times New Roman" size="2">4,086,750 shares common stock (acquired 7-16-92 thru 10-7-98)</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">5,800,000</font></td>

                <td align="right" width="38">
                </td>

                <td align="right" width="81"><font face="Times New Roman" size="2">61,301,250</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>McKinney, Texas</strong></font></td>

                <td width="410">
                </td>

                <td width="88">
                </td>

                <td width="38">
                </td>

                <td width="81">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Electric wire and cable for residential, commercial</font></td>

                <td width="410">
                </td>

                <td width="88">
                </td>

                <td width="38">
                </td>

                <td width="81">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and&nbsp;industrial use.</font></td>

                <td width="410">
                </td>

                <td width="88">
                </td>

                <td width="38">
                </td>

                <td width="81">
                </td>
            </tr>
        </table>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <th width="336">&nbsp;</th>

                <th width="411">
                </th>

                <th width="88">
                </th>

                <td width="37">
                </td>

                <th width="81">
                </th>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2"><strong>EXTREME INTERNATIONAL, INC.</strong></font></td>

                <td align="left" width="411"><font face="Times New Roman" size="2">13,035 shares Series A common stock (acquired 9-26-08 and</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="37">
                </td>

                <td align="right" width="81"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Sugar Land, Texas</strong></font></td>

                <td align="left" width="411"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp; 12-12-08)&nbsp;</font> </td>

                <td width="88">
                    <p align="right">325,875</p>
                </td>

                <td width="37">
                </td>

                <td width="81">
                    <p align="right">463,850</p>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owns Bill Young Productions, Texas</font> </td>

                <td align="left" width="411"><font face="Times New Roman" size="2">39,359 shares Series C Convertible Preferred Stock, convertible&nbsp;&nbsp;</font></td>

                <td align="right" width="88">
                </td>

                <td align="right" width="37">
                </td>

                <td align="right" width="81">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Video and Post, and Extreme Communi-</font></td>

                <td align="left" width="411"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp; into 157,436 shares of common stock at $25.00 per share</font></td>

                <td width="88">
                </td>

                <td width="37">
                </td>

                <td width="81">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cations, which produce radio and television</font></td>

                <td align="left" width="411"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp; (acquired 9-30-03)</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">2,625,000</font></td>

                <td align="right" width="37">
                </td>

                <td align="right" width="81"><font face="Times New Roman" size="2">5,602,376</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;commercials and corporate communica-</font></td>

                <td align="left" width="411"><font size="2">3,750 shares 8% Series A Convertible Preferred Stock, convertible into</font></td>

                <td width="88">
                </td>

                <td width="37">
                </td>

                <td width="81">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;tions videos.</font></td>

                <td align="left" width="411"><font face="Times New Roman" size="2">&nbsp;&nbsp; 15,000 shares of common stock at $25.00 per share (acquired 9-30-03)</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="88">
                    <p align="right"><font face="Times New Roman" size="2">375,000</font></p>
                </td>

                <td align="right" width="37">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="81"><font face="Times New Roman" size="2">533,774</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="411"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">3,325,875</font></td>

                <td align="right" width="37">
                </td>

                <td align="right" width="81"><font face="Times New Roman" size="2">6,600,000</font></td>
            </tr>
        </table>

        <p style="FONT-SIZE: 11.5pt; MARGIN: 0pt -0.5in 0pt 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 8.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="335"><font face="Times New Roman" size="2"><strong>&dagger;HEELYS, INC.</strong></font></td>

                <td align="left" width="417"><font face="Times New Roman" size="2">9,317,310 shares common stock (acquired 5-26-00)</font></td>

                <td width="86">
                    <p align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;102,490</font></p>
                </td>

                <td align="right" width="36">
                </td>

                <td width="79">
                    <p align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,634,620</font></p>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="335"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;<strong>&nbsp;Carrollton, Texas</strong></font></td>

                <td width="417">
                </td>

                <td width="86">
                </td>

                <td width="36">
                </td>

                <td width="79">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="335"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Heelys stealth skate shoes, equipment</font></td>

                <td width="417">
                </td>

                <td width="86">
                </td>

                <td width="36">
                </td>

                <td width="79">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="335"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and apparel sold through sporting goods</font></td>

                <td width="417">
                </td>

                <td width="86">
                </td>

                <td width="36">
                </td>

                <td width="79">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="335"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;chains, department stores and footwear</font></td>

                <td width="417">
                </td>

                <td width="86">
                </td>

                <td width="36">
                </td>

                <td width="79">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="335"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;retailers.</font></td>

                <td width="417">
                </td>

                <td width="86">
                </td>

                <td width="36">
                </td>

                <td width="79">
                </td>
            </tr>
        </table>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <th width="336">&nbsp;&nbsp;&nbsp;</th>

                <th width="412">
                </th>

                <th width="90">
                </th>

                <td width="36">
                </td>

                <th width="79">
                </th>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2"><strong>&dagger;HOLOGIC, INC.</strong></font></td>

                <td align="left" width="412"><font face="Times New Roman" size="2">&Dagger;632,820 shares common stock (acquired 8-27-99)</font></td>

                <td align="right" width="90"><font face="Times New Roman" size="2">220,000</font></td>

                <td align="right" width="36">
                </td>

                <td align="right" width="79"><font face="Times New Roman" size="2">8,264,629</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Bedford, Massachusetts</strong></font></td>

                <td width="412">
                </td>

                <td width="90">
                </td>

                <td width="36">
                </td>

                <td width="79">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Medical instruments including bone</font></td>

                <td width="412">
                </td>

                <td width="90">
                </td>

                <td width="36">
                </td>

                <td width="79">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;densitometers, mammography devices</font></td>

                <td width="412">
                </td>

                <td width="90">
                </td>

                <td width="36">
                </td>

                <td width="79">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and digital radiography systems.</font></td>

                <td width="412">
                </td>

                <td width="90">
                </td>

                <td width="36">
                </td>

                <td width="79">
                </td>
            </tr>
        </table>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <th width="336">&nbsp;&nbsp;</th>

                <th width="430">
                </th>

                <th width="70">
                </th>

                <td width="40">
                </td>

                <th width="77">
                </th>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2"><strong>LIFEMARK GROUP</strong></font></td>

                <td align="left" width="430"><font face="Times New Roman" size="2">1,449,026 shares common stock (acquired 7-16-69)</font></td>

                <td align="right" width="70"><font face="Times New Roman" size="2">4,510,400</font></td>

                <td align="right" width="40">
                </td>

                <td align="right" width="77"><font face="Times New Roman" size="2">71,000,000</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Hayward, California</strong></font></td>

                <td width="430">
                </td>

                <td width="70">
                </td>

                <td width="40">
                </td>

                <td width="77">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cemeteries, mausoleums and mortuaries</font></td>

                <td width="430">
                </td>

                <td width="70">
                </td>

                <td width="40">
                </td>

                <td width="77">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;located in northern California.</font></td>

                <td width="430">
                </td>

                <td width="70">
                </td>

                <td width="40">
                </td>

                <td width="77">
                </td>
            </tr>
        </table>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font size="2">8</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TMS RMN'" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">CAPITAL SOUTHWEST CORPORATION</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">AND SUBSIDIARIES</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><u>Consolidated Statement of Investments</u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">December 31, 2008<br>
        (continued)</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <th style="BORDER-BOTTOM: black 1px solid" width="336">
                    <p align="left"><font size="2">Company</font>&nbsp;</p>
                </th>

                <th style="BORDER-BOTTOM: black 1px solid" width="415">
                    <p align="left"><font size="2">Investment (a)</font></p>
                </th>

                <th style="BORDER-BOTTOM: black 1px solid" width="86">
                    <p align="center"><font size="2"><strong>Cost</strong>&nbsp;</font></p>
                </th>

                <td style="BORDER-BOTTOM: black 1px solid" width="40">&nbsp;</td>

                <th style="BORDER-BOTTOM: black 1px solid" width="76">
                    <p align="center"><font size="2"><strong>Value (b</strong>)</font></p>
                </th>
            </tr>

            <tr valign="bottom" height="27">
                <td align="left" width="336"><font face="Times New Roman" size="2"><strong>MEDIA RECOVERY, INC.</strong></font></td>

                <td align="left" width="415"><font face="Times New Roman" size="2">800,000 shares Series A Convertible Preferred Stock, convertible into</font></td>

                <td align="right" width="86"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="40">
                </td>

                <td align="right" width="76"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Dallas, Texas</strong></font></td>

                <td align="left" width="415"><font face="Times New Roman" size="2">&nbsp;&nbsp; 800,000 shares of common stock at $1.00 per share (acquired</font></td>

                <td width="86">
                </td>

                <td width="40">
                </td>

                <td width="76">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Computer datacenter and office automation</font></td>

                <td align="left" width="415"><font face="Times New Roman" size="2">&nbsp;&nbsp; 11-4-97)</font></td>

                <td align="right" width="86"><font face="Times New Roman" size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;800,000</font></td>

                <td align="right" width="40">
                </td>

                <td align="right" width="76"><font face="Times New Roman" size="2">$&nbsp;&nbsp;&nbsp;&nbsp;4,733,000</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;supplies and accessories; impact, tilt</font></td>

                <td align="left" width="415"><font face="Times New Roman" size="2">4,000,002 shares common stock (acquired 11-4-97)</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="86"><font face="Times New Roman" size="2">4,615,000</font></td>

                <td align="right" width="40">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="76"><font face="Times New Roman" size="2">23,667,000</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;monitoring and temperature sensing</font></td>

                <td align="left" width="415"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="86"><font face="Times New Roman" size="2">5,415,000</font></td>

                <td align="right" width="40">
                </td>

                <td align="right" width="76"><font face="Times New Roman" size="2">28,400,000</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;devices to detect mishandling shipments;</font></td>

                <td width="415">
                </td>

                <td width="86">
                </td>

                <td width="40">
                </td>

                <td width="76">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="336"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;dunnage for protecting shipments.</font></td>

                <td width="415">
                </td>

                <td width="86">
                </td>

                <td width="40">
                </td>

                <td width="76">
                </td>
            </tr>
        </table>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <th width="337">&nbsp;</th>

                <th width="415">
                </th>

                <th width="85">
                </th>

                <td width="41">
                </td>

                <th width="75">
                </th>
            </tr>

            <tr valign="bottom">
                <td align="left" width="337"><font face="Times New Roman" size="2"><strong>PALLETONE, INC.</strong></font></td>

                <td align="left" width="415"><font face="Times New Roman" size="2">12.3% senior subordinated notes due 2012 (acquired 9-25-06)</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">1,553,150</font></td>

                <td align="right" width="41">
                </td>

                <td align="right" width="75"><font face="Times New Roman" size="2">1,000,000</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="337"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Bartow, Florida</strong></font></td>

                <td align="left" width="415"><font face="Times New Roman" size="2">150,000 shares common stock (acquired 10-18-01)</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">150,000</font></td>

                <td align="right" width="41">
                </td>

                <td align="right" width="75"><font face="Times New Roman" size="2">2</font></td>
            </tr>

            <tr valign="bottom" height="14">
                <td align="left" width="337"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Manufacturer of wooden pallets and</font></td>

                <td align="left" width="415"><font face="Times New Roman" size="2">Warrant to purchase 15,294 shares of common stock at $1.00</font></td>

                <td width="85">
                </td>

                <td width="41">
                </td>

                <td width="75">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="337"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;pressure-treated lumber.</font></td>

                <td align="left" width="415"><font face="Times New Roman" size="2">&nbsp;&nbsp; per share, expiring 2011 (acquired 2-17-06)</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">45,746</font></td>

                <td align="right" width="41">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="75"><font face="Times New Roman" size="2">&ndash;&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="337"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="left" width="415"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">1,748,896</font></td>

                <td align="right" width="41">
                </td>

                <td align="right" width="75"><font face="Times New Roman" size="2">1,000,002</font></td>
            </tr>
        </table>

        <p style="FONT-SIZE: 11.5pt; MARGIN: 0pt -0.5in 0pt 0in; TEXT-INDENT: 0px" align="justify"><strong><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></strong></p>

        <p style="FONT-SIZE: 11.5pt; MARGIN: 0pt -0.5in 0pt 0.1in" align="justify"></p>

        <p style="FONT-SIZE: 11.5pt; MARGIN: 0pt -0.5in 0pt 0.1in" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2"><strong>&dagger;PALM HARBOR HOMES, INC.</strong></font></td>

                <td align="left" width="420"><font face="Times New Roman" size="2">7,855,121 shares common stock (acquired 1-3-85 thru 7-31-95)</font></td>

                <td width="78">
                    <p align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,931,955</font></p>
                </td>

                <td align="right" width="32">
                </td>

                <td width="84">
                    <p align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25,529,144</font></p>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;<strong>&nbsp;&nbsp;Dallas, Texas</strong></font></td>

                <td width="420">
                </td>

                <td width="78">
                </td>

                <td width="32">
                </td>

                <td width="84">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Integrated manufacturing, retailing,</font></td>

                <td width="420">
                </td>

                <td width="78">
                </td>

                <td width="32">
                </td>

                <td width="84">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;financing and insuring of manufactured</font></td>

                <td width="420">
                </td>

                <td width="78">
                </td>

                <td width="32">
                </td>

                <td width="84">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;housing and modular homes.</font></td>

                <td width="420">
                </td>

                <td width="78">
                </td>

                <td width="32">
                </td>

                <td width="84">
                </td>
            </tr>
        </table>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <th width="338">&nbsp;</th>

                <th width="415">
                </th>

                <th width="83">
                </th>

                <td width="34">
                </td>

                <th width="83">
                </th>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2"><strong>THE RECTORSEAL CORPORATION</strong></font></td>

                <td align="left" width="415"><font face="Times New Roman" size="2">27,907 shares common stock (acquired 1-5-73 and 3-31-73)</font></td>

                <td align="right" width="83"><font face="Times New Roman" size="2">52,600</font></td>

                <td align="right" width="34">
                </td>

                <td align="right" width="83"><font face="Times New Roman" size="2">127,300,000</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Houston, Texas</strong></font></td>

                <td width="415">
                </td>

                <td width="83">
                </td>

                <td width="34">
                </td>

                <td width="83">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Specialty chemicals for plumbing, HVAC,</font></td>

                <td width="415">
                </td>

                <td width="83">
                </td>

                <td width="34">
                </td>

                <td width="83">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;electrical, construction, industrial, oil field</font></td>

                <td width="415">
                </td>

                <td width="83">
                </td>

                <td width="34">
                </td>

                <td width="83">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and automotive applications; smoke contain-</font></td>

                <td width="415">
                </td>

                <td width="83">
                </td>

                <td width="34">
                </td>

                <td width="83">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ment systems for building fires; also owns 20%</font></td>

                <td width="415">
                </td>

                <td width="83">
                </td>

                <td width="34">
                </td>

                <td width="83">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of The Whitmore Manuacturing Company.</font></td>

                <td width="415">
                </td>

                <td width="83">
                </td>

                <td width="34">
                </td>

                <td width="83">
                </td>
            </tr>
        </table>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <th width="338">&nbsp;</th>

                <th width="405">
                </th>

                <th width="93">
                </th>

                <td width="35">
                </td>

                <th width="82">
                </th>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2"><strong>TCI HOLDINGS, INC.</strong></font></td>

                <td align="left" width="405"><font face="Times New Roman" size="2">21 shares 12% Series C Cumulative Compounding Preferred</font></td>

                <td align="left" width="93"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="35">
                </td>

                <td align="right" width="82"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Denver, Colarodo</strong></font></td>

                <td align="left" width="405"><font face="Times New Roman" size="2">&nbsp;&nbsp; stock (acquired 1-30-90)</font></td>

                <td width="93">
                    <p align="right"><font face="Times New Roman" size="2">&ndash;</font></p>
                </td>

                <td align="right" width="35">
                </td>

                <td align="right" width="82"><font face="Times New Roman" size="2">677,250&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cable television systems and microwave</font></td>

                <td width="405">
                </td>

                <td width="93">
                </td>

                <td width="35">
                </td>

                <td width="82">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;relay systems.</font></td>

                <td width="405">
                </td>

                <td width="93">
                </td>

                <td width="35">
                </td>

                <td width="82">
                </td>
            </tr>
        </table>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <th width="338">&nbsp;</th>

                <th width="406">
                </th>

                <th width="92">
                </th>

                <td width="36">
                </td>

                <th width="81">
                </th>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2"><strong>&dagger;TEXAS CAPITAL BANCSHARES, INC.</strong></font></td>

                <td align="left" width="406"><font face="Times New Roman" size="2">&Dagger;489,656 shares common stock (acquired 5-1-00)</font></td>

                <td align="right" width="92"><font face="Times New Roman" size="2">3,550,006</font></td>

                <td align="right" width="36">
                </td>

                <td align="right" width="81"><font face="Times New Roman" size="2">6,536,908</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Dallas, Texas</strong></font></td>

                <td width="406">
                </td>

                <td width="92">
                </td>

                <td width="36">
                </td>

                <td width="81">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regional bank holding company with</font></td>

                <td width="406">
                </td>

                <td width="92">
                </td>

                <td width="36">
                </td>

                <td width="81">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;banking operations in six Texas cities.</font></td>

                <td width="406">
                </td>

                <td width="92">
                </td>

                <td width="36">
                </td>

                <td width="81">
                </td>
            </tr>
        </table>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2"><strong>TRAX HOLDINGS, INC.</strong></font></td>

                <td align="left" width="405"><font face="Times New Roman" size="2">849,023 shares Series A Convertible Preferred Stock, convertible</font></td>

                <td align="right" width="93">
                </td>

                <td align="right" width="34">
                </td>

                <td align="right" width="83">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Scottsdale, Arizona</strong></font></td>

                <td width="405">&nbsp;&nbsp; into 849,023 common stock at $4.71 per share (acquired 12-08-08)</td>

                <td width="93">
                    <p align="right">4,000,000</p>
                </td>

                <td width="34">
                </td>

                <td width="83">
                    <p align="right">4,000,000</p>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provides a comprehensive set of solutions</font></td>

                <td width="405">
                </td>

                <td width="93">
                </td>

                <td width="34">
                </td>

                <td width="83">
                </td>
            </tr>

            <tr valign="bottom" height="6">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to improve the transportation validation,</font></td>

                <td width="405">
                </td>

                <td width="93">
                </td>

                <td width="34">
                </td>

                <td width="83">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;accounting, payment and information</font></td>

                <td width="405">
                </td>

                <td width="93">
                </td>

                <td width="34">
                </td>

                <td width="83">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;management process.</font></td>

                <td width="405">
                </td>

                <td width="93">
                </td>

                <td width="34">
                </td>

                <td width="83">
                </td>
            </tr>
        </table>
        <br>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2"><strong>VIA HOLDINGS, INC.</strong></font></td>

                <td align="left" width="407"><font face="Times New Roman" size="2">9,118 shares Series B Preferred Stock (acquired 9-19-05)</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">4,559,000</font></td>

                <td align="right" width="42">
                </td>

                <td align="right" width="81"><font face="Times New Roman" size="2">2</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Sparks, Nevada</strong></font></td>

                <td align="left" width="407"><font face="Times New Roman" size="2">1,118 shares Series C Preferred Stock (acquired 11-01-07)</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="2">281,523</font></td>

                <td align="right" width="42">
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="81"><font face="Times New Roman" size="2">2</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Designer, manufacturer and distributor</font></td>

                <td align="left" width="407"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="2">4,840,523</font></td>

                <td align="right" width="42">
                </td>

                <td align="right" width="81"><font face="Times New Roman" size="2">4</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of high-quality office seating.</font></td>

                <td width="407">
                </td>

                <td width="85">
                </td>

                <td width="42">
                </td>

                <td width="81">
                </td>
            </tr>
        </table>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font size="2">9</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade size="2">
        </div>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TMS RMN'" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">CAPITAL SOUTHWEST CORPORATION</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">AND SUBSIDIARIES</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><u>Consolidated Statement of Investments</u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">December 31, 2008<br>
        (continued)</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <th style="BORDER-BOTTOM: black 1px solid" width="339">
                    <p align="left"><font size="2">Company</font></p>
                </th>

                <th style="BORDER-BOTTOM: black 1px solid" width="405">
                    <p align="left"><font size="2">Investment (a)</font></p>
                </th>

                <th style="BORDER-BOTTOM: black 1px solid" width="87"><font size="2">Cost</font></th>

                <td style="BORDER-BOTTOM: black 1px solid" width="42">&nbsp;</td>

                <th style="BORDER-BOTTOM: black 1px solid" width="80">
                    <p align="center"><font size="2"><strong>Value (b</strong>)</font></p>
                </th>
            </tr>

            <tr valign="bottom" height="30">
                <td align="left" width="339"><font face="Times New Roman" size="2"><strong>WELLOGIX, INC.</strong></font></td>

                <td align="left" width="405"><font face="Times New Roman" size="2">4,788,371 shares Series A-1 Convertible Participating Preferred</font></td>

                <td align="right" width="87"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="42">
                </td>

                <td align="right" width="80"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="339"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Houston, Texas</strong></font></td>

                <td align="left" width="405"><font face="Times New Roman" size="2">&nbsp;&nbsp; Stock, convertible into 4,788,371 shares of common stock at</font></td>

                <td width="87">
                </td>

                <td width="42">
                </td>

                <td width="80">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="339"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Developer and supporter of software</font> </td>

                <td align="left" width="405"><font face="Times New Roman" size="2">&nbsp;&nbsp; $1.0441 per share (acquired 8-19-05 thru 6-15-08)</font></td>

                <td align="right" width="87"><font face="Times New Roman" size="2">$&nbsp;&nbsp;&nbsp;&nbsp;5,000,000&nbsp;</font></td>

                <td align="right" width="42">
                </td>

                <td align="right" width="80"><font face="Times New Roman" size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="339"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;used by the oil and gas industry.</font> </td>

                <td width="405">
                </td>

                <td width="87">
                </td>

                <td width="42">
                </td>

                <td width="80">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="339"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td width="405">
                </td>

                <td width="87">
                </td>

                <td width="42">
                </td>

                <td width="80">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="339"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td width="405">
                </td>

                <td width="87">
                </td>

                <td width="42">
                </td>

                <td width="80">
                </td>
            </tr>
        </table>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <th width="339">&nbsp;</th>

                <th width="405">
                </th>

                <th width="88">
                </th>

                <td width="41">
                </td>

                <th width="80">
                </th>
            </tr>

            <tr valign="bottom">
                <td align="left" width="339"><font face="Times New Roman" size="2"><strong>THE WHITMORE MANUFACTURING</strong></font></td>

                <td align="left" width="405"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">&nbsp;</font></td>

                <td align="right" width="41">
                </td>

                <td align="right" width="80"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="339"><font face="Times New Roman" size="2"><strong>COMPANY</strong></font></td>

                <td align="left" width="405"><font face="Times New Roman" size="2">80 shares common stock (acquired 8-31-79)</font></td>

                <td align="right" width="88"><font face="Times New Roman" size="2">1,600,000&nbsp;</font></td>

                <td align="right" width="41">
                </td>

                <td align="right" width="80"><font face="Times New Roman" size="2">37,000,000&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="339"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Rockwall, Texas</strong></font></td>

                <td width="405">
                </td>

                <td width="88">
                </td>

                <td width="41">
                </td>

                <td width="80">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="339"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Specialized mining, railroad and industrial</font></td>

                <td width="405">
                </td>

                <td width="88">
                </td>

                <td width="41">
                </td>

                <td width="80">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="339"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;lubricants; coatings for automobiles and</font></td>

                <td width="405">
                </td>

                <td width="88">
                </td>

                <td width="41">
                </td>

                <td width="80">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="339"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;primary metals; fluid contamination control</font></td>

                <td width="405">
                </td>

                <td width="88">
                </td>

                <td width="41">
                </td>

                <td width="80">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="339"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;devices.</font></td>

                <td width="405">
                </td>

                <td width="88">
                </td>

                <td width="41">
                </td>

                <td width="80">
                </td>
            </tr>
        </table>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <th width="338">&nbsp;&nbsp;</th>

                <td width="407">
                </td>

                <th width="89">
                </th>

                <td width="39">
                </td>

                <th width="80">
                </th>
            </tr>

            <tr>
                <td align="left" width="338"><font size="2"><strong>MISCELLANEOUS</strong>&nbsp;&nbsp;</font></td>

                <td width="407"><font size="2">&ndash; Ballast Point Ventures, II, L.P. - 2.6% limited partnership interest</font></td>

                <td align="right" width="89">
                </td>

                <td align="right" width="39">
                </td>

                <td align="right" width="80">
                </td>
            </tr>

            <tr>
                <td align="left" width="338">
                </td>

                <td width="407">&nbsp;&nbsp;&nbsp;&nbsp; (acquired 8-4-08 thru 10-24-08)</td>

                <td align="right" width="89">375,000</td>

                <td align="right" width="39">
                </td>

                <td align="right" width="80">375,000</td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>

                <td width="407">
                    <p align="left"><font face="Times New Roman" size="2">&ndash; BankCap Partners Fund I, L.P. &ndash; 6.0% limited partnership interest</font></p>
                </td>

                <td align="right" width="89">
                </td>

                <td align="right" width="39">
                </td>

                <td align="right" width="80"><font face="Times New Roman" size="2">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td width="407">
                    <p align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp; (acquired 7-14-06 thru 10-10-08)</font></p>
                </td>

                <td align="right" width="89"><font face="Times New Roman" size="2">3,766,681</font></td>

                <td align="right" width="39">
                </td>

                <td align="right" width="80"><font face="Times New Roman" size="2">3,766,681</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td width="407"><font face="Times New Roman" size="2">&ndash; CapitalSouth Partners Fund III, L.P. &ndash; 2.8% limited partnership interest</font></td>

                <td width="89">
                </td>

                <td width="39">
                </td>

                <td width="80">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td width="407">
                    <p align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp; (acquired 1-22-08)</font></p>
                </td>

                <td align="right" width="89"><font face="Times New Roman" size="2">701,256&nbsp;</font></td>

                <td align="right" width="39">
                </td>

                <td align="right" width="80"><font face="Times New Roman" size="2">701,256&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td width="407"><font face="Times New Roman" size="2">&ndash; Diamond State Ventures, L.P. &ndash; 1.9% limited partnership interest</font></td>

                <td width="89">
                </td>

                <td width="39">
                </td>

                <td width="80">
                </td>
            </tr>

            <tr valign="bottom" height="13">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td width="407">
                    <p align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp; (acquired 10-12-99 thru 8-26-05)</font></p>
                </td>

                <td align="right" width="89"><font face="Times New Roman" size="2">111,000&nbsp;</font></td>

                <td align="right" width="39">
                </td>

                <td align="right" width="80"><font face="Times New Roman" size="2">111,000&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left" width="338">
                </td>

                <td width="407"><font size="2">&ndash; Discovery Alliance, LLC - 90.0% limited liability company</font></td>

                <td width="89">
                </td>

                <td width="39">
                </td>

                <td width="80">
                </td>
            </tr>

            <tr>
                <td align="left" width="338">
                </td>

                <td width="407">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (acquired 9-12-08 thru 12-1-08)</td>

                <td width="89">
                    <p align="right">300,000</p>
                </td>

                <td width="39">
                </td>

                <td width="80">
                    <p align="right">300,000</p>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td width="407"><font face="Times New Roman" size="2">&ndash; First Capital Group of Texas III, L.P. &ndash; 3.3% limited partnership</font></td>

                <td width="89">
                </td>

                <td width="39">
                </td>

                <td width="80">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td width="407">
                    <p align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp; interest (acquired 12-26-00 thru 8-12-05)</font></p>
                </td>

                <td align="right" width="89"><font face="Times New Roman" size="2">964,604&nbsp;</font></td>

                <td align="right" width="39">
                </td>

                <td align="right" width="80"><font face="Times New Roman" size="2">771,814</font></td>
            </tr>

            <tr valign="bottom" height="13">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td width="407"><font face="Times New Roman" size="2">&ndash; Humac Company &ndash; 1,041,000 shares common stock (acquired 1-31-75</font></td>

                <td width="89">
                </td>

                <td width="39">
                </td>

                <td width="80">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td width="407">
                    <p align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp; and 12-31-75)</font></p>
                </td>

                <td align="right" width="89"><font face="Times New Roman" size="2">&ndash;&nbsp;</font></td>

                <td align="right" width="39">
                </td>

                <td align="right" width="80"><font face="Times New Roman" size="2">144,000&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td width="407"><font face="Times New Roman" size="2">&ndash; STARTech Seed Fund I &ndash; 12.1% limited partnership interest (acquired</font></td>

                <td width="89">
                </td>

                <td width="39">
                </td>

                <td width="80">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td width="407">
                    <p align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp; 4-17-98 thru 1-5-00)</font></p>
                </td>

                <td align="right" width="89"><font face="Times New Roman" size="2">178,066&nbsp;</font></td>

                <td align="right" width="39">
                </td>

                <td align="right" width="80"><font face="Times New Roman" size="2">1&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td width="407"><font face="Times New Roman" size="2">&ndash; STARTech Seed Fund II &ndash; 3.2% limited partnership interest (acquired</font></td>

                <td width="89">
                </td>

                <td width="39">
                </td>

                <td width="80">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td width="407">
                    <p align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp; 4-28-00 thru 2-23-05)</font></p>
                </td>

                <td align="right" width="89"><font face="Times New Roman" size="2">950,000&nbsp;</font></td>

                <td align="right" width="39">
                </td>

                <td align="right" width="80"><font face="Times New Roman" size="2">1&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td width="407"><font face="Times New Roman" size="2">&ndash; Sterling Group Partners I, L.P. &ndash; 1.7% limited partnership interest</font></td>

                <td width="89">
                </td>

                <td width="39">
                </td>

                <td width="80">
                </td>
            </tr>

            <tr valign="bottom">
                <td style="BORDER-BOTTOM: black 1px solid" align="left" width="338"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="407">
                    <p align="left"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp; (acquired 4-20-01 thru 1-24-05)</font></p>
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="89"><font face="Times New Roman" size="2">1,064,042&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="39">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="80"><font face="Times New Roman" size="2">808,165</font></td>
            </tr>
        </table>

        <p style="FONT-SIZE: 11.5pt; MARGIN: 0pt -0.5in 0pt 0in; TEXT-INDENT: 0px" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%">
            <tr>
                <td style="BORDER-BOTTOM: black 1px solid" width="31%"><strong><font size="2">TOTAL INVESTMENTS&nbsp;</font></strong></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="470">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 1px solid" width="89">
                    <p align="right"><font size="2">$88,059,191</font><font style="FONT-SIZE: 8pt">&nbsp;</font></p>
                </td>

                <td style="BORDER-BOTTOM: black 1px solid" width="41">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 1px solid" width="79">
                    <p align="right"><font size="2">$456,239,087</font></p>
                </td>

                <td width="1">
                </td>
            </tr>
        </table>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td width="305"><font face="Lucida Console" size="1">&dagger;</font><font style="FONT-SIZE: 7pt">Publicly-owned company&nbsp;</font></td>

                <td width="84">
                </td>

                <td width="577"><font size="1">&Dagger;</font><font style="FONT-SIZE: 7pt">Unrestricted securities as defined in Note (a)</font></td>

                <td width="2%">
                </td>
            </tr>
        </table>

        <p style="FONT-SIZE: 11.5pt; MARGIN: 0pt -0.5in 0pt 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 7pt">&nbsp;&nbsp;&nbsp;</font></p>

        <p style="FONT-SIZE: 11.5pt; MARGIN: 0pt -0.5in 0pt 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif" align="center"><u>Notes to Consolidated Statement of Investments</u></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif" align="left"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td width="100%">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Definitions</td>

                <td>
                </td>
            </tr>

            <tr>
                <td width="100%">
                    <p align="justify"><strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrestricted securities</strong> (indicated by &plusmn;) are freely marketable securities having readily available market quotations. All other securities are restricted securities, which are subject to one or more restriction on resale and are not freely marketable. At December 31, 2008, restricted securities represented approximately 96.7% of the value of the consolidated investment
                    portfolio.&nbsp;&nbsp;</p>
                </td>

                <td>
                </td>
            </tr>
        </table>
        <br>

        <p></p>

        <p></p>

        <p align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td width="100%">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Valuation Policy</td>

                <td>
                </td>
            </tr>

            <tr>
                <td width="100%">
                    <p align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Our investments are carried at fair value in accordance with the Investment Company Act of 1940 (the &ldquo;1940 Act&rdquo;) and SFAS No. 157, Fair Value Measurements (&ldquo;SFAS No. 157&rdquo;). In accordance with the 1940 Act, unrestricted minority-owned publicly traded securities, for which the market quotations are readily available, are valued at the closing sale price for the NYSE listed
                    securities and the lower of the closing bid price or the last sale price for NASDAQ securities on the valuation date; and restricted publicly traded securities and other privately held securities are valued as determined in good faith by our Board of Directors.</p>
                </td>

                <td>
                </td>
            </tr>
        </table>
        <br>
        <br>

        <p align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

        <p></p>

        <p align="center"><a name="PAGENUM"><font size="2">10</font></a></p>

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        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Notes to Consolidated Statement of Investments<br>
        (continued)</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp; We adopted SFAS No. 157 on April 1, 2008 (see footnote 1 in &ldquo;Notes to Consolidated Financial Statements,&rdquo; page 12). SFAS No. 157 provides a framework for measuring the fair value of assets and liabilities. SFAS No. 157 also provides guidance regarding a fair value hierarchy,
        which prioritizes information used to measure fair value and the effect of fair value measurements on earnings and provides for enhanced disclosures determined by the level within the hierarchy of information used for valuation. SFAS No. 157 applies whenever other standards require (or permit) assets or liabilities to be measured at fair value but does not expand the use of fair value in any new circumstances.</p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp; SFAS No. 157 defines fair value in terms of the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the &ldquo;exit price&rdquo;) and excludes transaction costs. Under
        SFAS No. 157, the fair value measurement also assumes that the transaction to sell an asset occurs in the principal market for the asset or, in the absence of a principal market, the most advantageous market for the asset. The principal market is the market in which the reporting entity would sell or transfer the asset with the greatest volume and level of activity for the asset. In determining the principal market for an asset or liability under SFAS No. 157, it is assumed that the
        reporting entity has access to the market as of the measurement date.</p>

        <p align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td width="100%">(c) Valuation Methodologies</td>

                <td>
                </td>
            </tr>

            <tr>
                <td width="100%">
                    <p align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Debt Securities</u> are generally valued on the basis of the price the security would command in order to provide a yield-to-maturity equivalent to the present yield of comparable debt instruments of similar quality.</p>
                </td>

                <td>
                </td>
            </tr>
        </table>
        <br>
        <br>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch"></p>

        <p align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Partnership Interests and Common Equity</u> including unrestricted marketable securities, which are valued at the closing sale price for the NYSE listed securities and the lower of the closing bid price or the last sale price for NASDAQ securities on the valuation date; and restricted marketable securities for which there is a public market, are valued
        at the closing sale price for the NYSE listed securities and the lower of the closing bid price or the last sale price for NASDAQ securities on the valuation date adjusted in good faith by our Board of Directors if they deem a discount or premium would be likely or obtainable upon a sale or transfer of our interest, for those without a principal market, the Board of Directors considers the financial condition and operating results of the issuer; the long-term potential of the business
        of the issuer; the market for and recent sales prices of the issuer&rsquo;s securities; the values of similar securities issued by companies in similar businesses; the proportion of the issuer&rsquo;s securities owned by the Company; protective put analysis based on the Black-Scholes option pricing model, the nature and duration of resale restrictions and the nature of any rights enabling the Company to require the issuer to register restricted securities under applicable securities
        laws. In determining the fair value of restricted securities, the Board of Directors considers the inherent value of such securities without regard to the restrictive feature and adjusts for any diminution in value resulting from restrictions on resale.<br>
        &nbsp;<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Preferred Equity</u> is valued on the basis of the price (bond value) the security would carry in the absence of the conversion feature plus the value allocable to the conversion feature (conversion value).<br>
        &nbsp;<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Equity Warrants</u> are valued on the basis of accepted formulas derived from empirical studies which define the market value of a warrant in relation to the market price of its common stock. These formulas measure the &ldquo;option value&rdquo; of a warrant as well as its &ldquo;exercise value&rdquo; (the amount, if any, by which the value of the stock exceeds the exercise price of the
        warrant). In applying such formulas, the market price of the stock is usually discounted to reflect the fact that the stock is restricted and the calculated value of the warrant itself may be discounted (if deemed appropriate) to reflect its restrictive nature. Generally, the option value is excluded if the formula indicates (i) the warrant expires within six months, (ii) the market price of the stock (discounted) is less than one-half of the exercise price of the warrant, or (iii) the
        market price of the stock (discounted) is more than two times the amount of the exercise price of the warrant.</p>

        <p></p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font size="2">11</font></a>
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        </div>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif" align="center"></p>

        <table cellspacing="0" cellpadding="0" width="40%" align="center" border="0">
            <tr>
                <td width="40%">
                    <p align="center"><u>Notes to Consolidated Fin</u><a name="A006"></a><u>ancial Statements</u></p>
                </td>
            </tr>

            <tr>
                <td width="40%">
                    <p align="center">(Unaudited)</p>
                </td>
            </tr>
        </table>
        <br>
        <br>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basis of Presentation</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Principles of Consolidation.</u> The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (&ldquo;GAAP&rdquo;) for investment companies. Under rules and regulations applicable to
        investment companies, we are precluded from consolidating any entity other than another investment company. An exception to this general principle occurs if the investment company has an investment in an operating company that provides services to the investment company. Our consolidated financial statements include our management company.</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and Article 6 of Regulation S-X. The financial statements should
        be read in conjunction with the consolidated financial statements and notes thereto included in our Form 10-K for the year ended March 31, 2008. Certain information and footnotes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted, although we believe that the disclosures are adequate for a fair presentation. The information reflects all adjustments (consisting of normal
        recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim periods.&nbsp;</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify"><u>Fair Value Measurements.</u> The Company adopted SFAS No. 157, <i>Fair Value Measurements</i> (&ldquo;SFAS 157&rdquo;)<i>,</i> on April 1, 2008. SFAS 157 (1) creates a single definition of fair value, (2) establishes a framework for measuring fair value, and (3) expands disclosure requirements about
        items measured at fair value. The Statement applies to both items recognized and reported at fair value in the financial statements and items disclosed at fair value in the notes to the financial statements. The Statement does not change existing accounting rules governing what can or what must be recognized and reported at fair value in the Company&rsquo;s financial statements, or disclosed at fair value in the Company&rsquo;s notes to the financial statements. Additionally, SFAS 157
        does not eliminate practicability exceptions that exist in accounting pronouncements amended by this Statement when measuring fair value. As a result, the Company will not be required to recognize any new assets or liabilities at fair value.</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">Prior to SFAS 157, certain measurements of fair value were based on the price that would be paid to acquire an asset, or received to assume a liability (an entry price). SFAS 157 clarifies the definition of fair value as the price that would be received from the sale of an asset, or paid to transfer a
        liability, in an orderly transaction between market participants at the measurement date (that is, an exit price). The exit price is based on the amount that the holder of the asset or liability would receive or need to pay in an actual transaction (or in a hypothetical transaction if an actual transaction does not exist) at the measurement date. In some circumstances, the entry and exit price may be the same; however, they are conceptually different.</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">Fair value is generally determined based on quoted market prices in the active markets for identical assets or liabilities. If quoted market prices are not available, the Company uses valuation techniques that place greater reliance on observable inputs and less reliance on unobservable inputs. In
        measuring fair value, the Company may make adjustments for risks and uncertainties, if a market participant would include such an adjustment in its pricing.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 10pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TMS RMN'" align="center">&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font size="2">12</font></a>
        </div>

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        </div>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 10pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TMS RMN'" align="center">&nbsp;</p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Notes to Consolidated Financial Statements<br>
        (continued)</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We fair value our investments in accordance with GAAP as determined in good faith by our Board of Directors. When available, we base the fair value of our investments on directly observable market prices or on market data derived for comparable assets. For all other
        investments, inputs used to measure fair value reflect management&rsquo;s best estimate of assumptions that would be used by market participants in pricing the investments in a hypothetical transaction.</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The levels of fair value inputs used to measure our investments are characterized in accordance with the fair value hierarchy established by SFAS No. 157, <i>Fair Value Measurements</i> (&ldquo;SFAS 157&rdquo;). Where inputs for an asset or liability fall in more than one
        level in the fair value hierarchy, the investment is classified in its entirety based on the lowest level input that is significant to that investment&rsquo;s fair value measurement. We use judgment and consider factors specific to the investment in determining the significance of an input to a fair value measurement. The three levels of the fair value hierarchy and investments that fall into each of the levels are described below:</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"></p>

        <table>
            <tr>
                <td width="24">
                </td>

                <td valign="top">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11.5pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'SYMBOL'">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td valign="top">
                    <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><i>Level 1:</i> Level 1 inputs are unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. We use Level 1 inputs for publicly traded unrestricted securities for which we do not have a controlling interest. Such investments are valued at the closing
                    price for listed securities and at the lower of the closing bid price or the closing sale price for over-the-counter (NASDAQ) securities on the valuation date.</p>
                </td>
            </tr>
        </table>
        <br>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"></p>

        <table>
            <tr>
                <td width="24">
                </td>

                <td valign="top">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11.5pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'SYMBOL'">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td valign="top">
                    <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><i>Level 2:</i> Level 2 inputs are inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. We did not value any of our investments using level 2 inputs as of December 31, 2008.</p>
                </td>
            </tr>
        </table>
        <br>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"></p>

        <table>
            <tr>
                <td width="24">
                </td>

                <td valign="top">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11.5pt; MARGIN-BOTTOM: 0pt; FONT-FAMILY: 'SYMBOL'">&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td valign="top">
                    <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><i>Level 3:</i> Level 3 inputs are unobservable and cannot be corroborated by observable market data. We use Level 3 inputs for measuring the fair value of substantially all of our investments. See &ldquo;Notes to Portfolio of Investments&rdquo; (c) on page 12 for the investment policy used to determine the fair value of these
                    investments.</p>
                </td>
            </tr>
        </table>
        <br>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif" align="justify">The following fair value hierarchy table sets forth our investment portfolio by level as of December 31, 2008 (in millions):</p>

        <p></p>

        <p></p>

        <p></p>

        <table style="MARGIN-LEFT: 0.4in" cellspacing="0" cellpadding="0" width="700" border="0">
            <tr>
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="219">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="62">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><u><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Level 1</font></u></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="66">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><u><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Level 2</font></u></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="69">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><u><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Level 3</font></u></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><u><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Total</font></u></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.2pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="219">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Debt</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="62">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="66">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$-</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="69">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp;&nbsp;&nbsp; 9.2</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp;&nbsp;&nbsp; 9.2</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.2pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="219">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Partnership Interests</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="62">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">-</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="66">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">-</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="69">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">10.5</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">10.5</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.2pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="219">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Preferred Equity</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="62">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">-</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="66">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">-</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="69">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">17.0</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">17.0</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.2pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="219">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Common Equity</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="62">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">14.8</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="66">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">-</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="69">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">404.7</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">419.5</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.2pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="219">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Equity Warrants</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="62">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">-</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="66">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">-</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="69">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">-</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">-</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.8pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="219">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 20px" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Total Investments</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 3pt double" valign="bottom" width="62">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$14.8</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 3pt double" valign="bottom" width="66">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$-</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 3pt double" valign="bottom" width="69">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$441.4</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 3pt double" valign="bottom" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$456.2</font></p>
                </td>
            </tr>
        </table>
        <br>
        <br>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif" align="justify">The following table sets forth a summary of changes in the fair value of investment assets and liabilities measured using Level 3 inputs during the quarter ended December 31, 2008 (in millions):</p>

        <p></p>

        <p></p>

        <p></p>

        <table style="MARGIN-LEFT: 0.4in" cellspacing="0" cellpadding="0" width="700" border="0">
            <tr>
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="218">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Beginning</font> <u><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Balance</font></u></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Unrealized</font> <u><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">gain</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(loss)</font></u></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Purchases,</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Sales,</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Issuance &amp;</font> <u><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Settlement</font></u></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="76">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Ending</font> <u><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Balances</font></u></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.2pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="218">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Debt</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp; 10.6</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp; (2.9)</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$1.5</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="76">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp;&nbsp;&nbsp; 9.2</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.2pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="218">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Partnership Interests</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">9.9</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(0.9)</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">1.5</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="76">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">10.5</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.2pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="218">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Preferred Equity</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">14.6</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(2.2)</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">4.6</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="76">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">17.0</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.2pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="218">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Common Equity</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">436.5</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(3.18)</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">-</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="76">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">404.7</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.8pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="218">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 20px" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Total Investments</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 3pt double" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$471.6</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 3pt double" valign="bottom" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$(37.8)</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 3pt double" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$7.6</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 3pt double" valign="bottom" width="76">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$441.4</font></p>
                </td>
            </tr>
        </table>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font size="2">13</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade size="2">
        </div>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Notes to Consolidated Financial Statements<br>
        (continued)</p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left" align="justify">The following table sets forth a summary of changes in the fair value of investment assets and liabilities measured using Level 3 inputs during the nine months ended December 31, 2008 (in millions):</p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left" align="justify"></p>

        <table style="MARGIN-LEFT: 0.4in" cellspacing="0" cellpadding="0" width="700" border="0">
            <tr>
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="218">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Beginning</font> <u><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Balance</font></u></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Unrealized</font> <u><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">gain</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(loss)</font></u></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Purchases,</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Sales,</font> <font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Issuance &amp;</font> <u><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Settlement</font></u></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="76">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Ending</font> <u><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Balances</font></u></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.2pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="218">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Debt</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp;&nbsp;&nbsp; 9.0</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ (4.0)</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 4.2</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="76">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$&nbsp;&nbsp;&nbsp; 9.2</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.2pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="218">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Partnership Interests</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">9.0</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(0.5)</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2.0</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="76">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">10.5</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.2pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="218">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Preferred Equity</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">21.8</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(10.0)</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">5.2</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="76">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">17.0</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.2pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="218">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Common Equity</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">454.6</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(50.5)</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">0.6</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="76">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">404.7</font></p>
                </td>
            </tr>

            <tr>
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="218">Equity Warrants</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="81">
                    <p align="right">0.4</p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="78">
                    <p align="right">(0.1)</p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="81">
                    <p align="right">(0.3)</p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1px solid" valign="bottom" width="76">
                    <p align="right">-</p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.8pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="218">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 20px" align="justify"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">Total Investments</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 3pt double" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$494.8</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 3pt double" valign="bottom" width="78">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$(65.1)</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 3pt double" valign="bottom" width="81">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$11.7</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 3pt double" valign="bottom" width="76">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">$441.4</font></p>
                </td>
            </tr>
        </table>
        <br>
        <br>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left">3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income Taxes</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital Southwest Corporation (&ldquo;CSC&rdquo;) and Capital Southwest Venture Corporation (&ldquo;CSVC&rdquo;) operate to qualify as a RIC under Subchapter M of the Code. In order to qualify as a RIC, we must annually distribute at least 90% of our taxable ordinary
        income, based on our tax year, to our shareholders in a timely manner. Ordinary income includes net short-term capital gains but excludes net long-term capital gains. A RIC is not subject to federal income tax on the portion of its ordinary income and long-term capital gains that are distributed to its shareholders, including &ldquo;deemed distributions&rdquo; discussed below. As permitted by the Code, a RIC can designate dividends paid in the subsequent tax year as dividends of current
        year ordinary income and net long-term gains if those dividends are both declared by the extended due date of the RIC&rsquo;s federal income tax return and paid to shareholders by the last day of the subsequent tax year. We have distributed or intend to distribute sufficient dividends to eliminate taxable income for our completed tax fiscal years. If we fail to satisfy the 90% distribution requirement or otherwise fail to qualify as a RIC in any tax year, we would be subject to tax in
        such year on all of our taxable income, regardless of whether we made any distributions to our shareholders. For the tax years ended December 31, 2008 and 2007, Capital Southwest Corporation (&ldquo;CSC&rdquo;) and Capital Southwest Venture Corporation (&ldquo;CSVC&rdquo;) qualified to be taxed as RICs. We intend to meet the applicable qualifications to be taxed as a RIC in future years; management feels it is probable that we will maintain our RIC status for a period longer than one
        year. However, either company&rsquo;s ability to meet certain portfolio diversification requirements of RICs in future years may not be controllable by such company.</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp; In addition, a RIC may elect to retain its long-term capital gains by designating them as a &ldquo;deemed distribution&rdquo; to its shareholders and paying a federal tax of 35% on the long-term capital gains for the benefit of its shareholders. Shareholders would then report their share of the
        retained capital gains on their income tax returns as if it had been received and report a tax credit for the tax paid on their behalf by the RIC. Shareholders then add the amount of the &ldquo;deemed distribution,&rdquo; net of such tax, to the basis of their shares.</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As permitted by the Internal Revenue Code, a RIC can designate dividends paid in the subsequent tax year as dividends of the current year ordinary taxable income and long-term capital gains if those dividends are both declared by the extended due date of the RIC&rsquo;s
        federal income tax return and paid to shareholders by the last day of the subsequent tax year. For the tax years ended December 31, 2008 and 2007 we declared and paid dividends in the amounts of $12,256,745 and $2,333,291, respectively.</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally, we are also subject to a nondeductible federal excise tax of 4% if we do not distribute at least 98% of our investment company ordinary taxable income before the end of our tax year. For the tax year ended December 31, 2008 we distributed 100% of our
        investment company ordinary taxable income. As a result we have made no provision for income taxes on ordinary taxable income for the tax year ended December 31, 2008. For the tax year ended December 31, 2007, we distributed 100% of our investment company ordinary taxable income, however only 70% was distributed by the end of the tax year. As a result, we incurred and an excise tax of 4% of the undistributed income or $41,543, which was paid in 2008 and is included in income tax expense
        on the accompanying consolidated statements of operation.</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font size="2">14</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade size="2">
        </div>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Notes to Consolidated Financial Statements<br>
        (continued)</p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">For the tax year ended December 31, 2008, we have estimated net long-term capital gains of $14,922,751 for tax purposes and $15,936,644 for book purposes, which we elected to retain and treat as deemed distributions to our shareholders. For the tax year ended December 31, 2007, we had net long-term
        capital losses of $944,872 for tax purposes and $860,118 for book purposes, which we carried forward and offset by future net long-term capital gains. In order to make the election to retain capital gains, we incurred a federal tax on behalf of our shareholders of $5,222,964 for the tax year ended December 31, 2008. As of December&nbsp;31, 2008, we did not have any undistributed long-term capital gains since they are treated as being distributed through the &ldquo;deemed
        distribution&rdquo;.</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;CSMC, a wholly owned subsidiary of CSC, is not a RIC and is required to pay taxes at the current corporate rate. The Company sponsors a qualified defined benefit pension plan which covers its employees and employees of certain of its wholly owned portfolio companies. Deferred taxes related to the
        qualified defined pension plan are recorded as incurred.</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-Based Compensation</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">Effective April 1, 2006, we adopted SFAS 123R using the modified prospective transition method. We recognize compensation cost over the straight-line method for all share-based payments granted on or after that date and for all awards granted to employees prior to April 1, 2006 that remain unvested on
        that date. The fair value of stock options are determined on the date of grant using the Black-Scholes pricing model and are expensed over the vesting period of the related stock options. Accordingly, for the quarter and nine months ended December 31, 2008, we recognized compensation expense of $141,525 and $362,118, respectively.</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">As of December 31, 2008, the total remaining unrecognized compensation cost related to non-vested stock options was $2,504,452, which will be amortized over the weighted-average service period of approximately 4.9 years.</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee Stock Option Plan</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">On July 19, 1999, shareholders approved the 1999 Stock Option (&ldquo;Plan&rdquo;), which provides for the granting of stock options to employees and officers of the Company and authorizes the issuance of common stock upon exercise of such options for up to 140,000 shares. All options are granted at or
        above market price, generally expire ten years from the date of grant and are generally exercisable on or after the first anniversary of the date of grant in five to ten annual installments.</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">At December 31, 2008, there were no shares available for grant under the Plan. The following table summarizes the price per option at grant date using the Black-Scholes pricing model:</p>

        <p></p>

        <table style="MARGIN-LEFT: 0.4in" cellspacing="0" cellpadding="0" width="85%" align="left" border="0">
            <tr>
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="120">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="74">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="324" colspan="7">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">Black-Scholes Pricing Model Assumptions</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 52.8pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="120">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">Date of Issuance</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="74">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">Weighted Average Fair Value</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="71">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">Expected Dividend Yield</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="64">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">Risk-Free Interest Rate</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="73">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">Expected Volatility</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="71">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">Expected Life (in years)</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.2pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="120">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">May 15, 2006</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="74">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 31.28</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="71">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">0.64%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="64">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">5.08%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="73">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">21.1%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="71">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">7</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.2pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="120">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">July 17, 2006</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="74">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 33.05</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="71">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">0.61%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="64">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">5.04%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="73">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">21.2%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="71">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">7</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.2pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="120">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">July 16, 2007</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="74">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 41.78</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="71">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">0.39%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="64">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">4.95%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="73">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">19.9%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="71">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">5</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.2pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="120">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">July 21, 2008</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="74">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 27.35</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="71">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">0.67%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="64">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">3.41%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="73">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">20.2%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="71">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">5</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.2pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="120">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">July 30, 2008</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="74">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">$ 29.93</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="71">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">0.62%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="64">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">3.36%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="73">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">20.2%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="14">&nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="71">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">5</font></p>
                </td>
            </tr>
        </table>
        <br>
        <br>

        <p>&nbsp;</p>

        <p>&nbsp;</p>

        <p>&nbsp;</p>

        <p>&nbsp;</p>

        <p>&nbsp;</p>

        <p>&nbsp;</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font size="2">15</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade size="2">
        </div>

        <p align="justify">Notes to Consolidated Financial Statements<br>
        (continued)</p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">The following table summarizes activity in the Plan as of September 30, 2008:</p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 11.5pt; MARGIN: 0pt -0.5in 0pt 0in; TEXT-INDENT: 0px" align="justify"></p>

            <table cellspacing="0" cellpadding="0" width="85%" border="0">
                <tr valign="bottom">
                    <td align="left" width="70%">
                    </td>

                    <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td width="11%">
                        <p align="center"><font face="Times New Roman" size="3">Number</font></p>
                    </td>

                    <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td width="13%">
                        <p align="center"><font face="Times New Roman" size="3">Weighted-Average</font></p>
                    </td>

                    <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left">
                    <font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid">
                        <p align="center"><font face="Times New Roman" size="3">of shares</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid">
                        <p align="center">Exercise Price</p>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="3">Balance at March 31, 2008</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td>
                        <p align="center"><font face="Times New Roman" size="3">70,400</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td>
                        <p align="center"><font face="Times New Roman" size="3">$109.99</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;Granted</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td>
                        <p align="center"><font face="Times New Roman" size="3">37,500</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td>
                        <p align="center"><font face="Times New Roman" size="3">$123.72</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;Exercised</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td>
                        <p align="center"><font face="Times New Roman" size="3">&ndash;</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td>
                        <p align="center"><font face="Times New Roman" size="3">&ndash;</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;Canceled</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid">
                        <p align="center"><font face="Times New Roman" size="3">&ndash;</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid">
                        <p align="center"><font face="Times New Roman" size="3">&ndash;</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left"><font face="Times New Roman" size="3">Balance at December 31, 2008</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double">
                        <p align="center"><font face="Times New Roman" size="3">107,900</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 2.25pt double">
                        <p align="center"><font face="Times New Roman" size="3">$114.78</font></p>
                    </td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
                </tr>
            </table>
            &nbsp;&nbsp;&nbsp;<br>
            <br>
        </blockquote>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify"></p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December 31, 2008, the range of exercise prices and weighted-average remaining contractual life of outstanding options was $65.00 to $152.98 and 4.9 years, respectively. No options were exercised during the nine months ended December 31, 2008.<br>
        <br>
        </p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December 31, 2008, the number of options exercisable was 21,445 and the weighted-average exercise price of those options was $97.00.</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Summary of Per Share Information</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="367">
                </td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="75"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td colspan="4">
                    <p align="center"><font face="Times New Roman" size="3">Three Months Ended&nbsp;</font></p>
                </td>

                <td align="left" width="17">
                </td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td colspan="4">
                    <p align="center"><font face="Times New Roman" size="3">&nbsp;&nbsp;Nine Months Ended</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367">
                </td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="75"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="3">December 31&nbsp;</font></p>
                </td>

                <td align="left" width="17">
                </td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="3">December&nbsp;31</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367">
                </td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="75"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="3">2008</font></p>
                </td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="22"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="3">2007</font></p>
                </td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="3">2008</font></p>
                </td>

                <td align="left" width="18"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="3">2007</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367"><font face="Times New Roman" size="3">Investment income</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="75">
                </td>

                <td align="right" width="85"><font face="Times New Roman" size="3">$&nbsp;&nbsp; 2.74</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="22">
                </td>

                <td align="right" width="85"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp; .67</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23">
                </td>

                <td align="right" width="85"><font face="Times New Roman" size="3">$&nbsp;&nbsp; 3.42</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23">
                </td>

                <td align="right" width="85"><font face="Times New Roman" size="3">$&nbsp; 1.41</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367"><font face="Times New Roman" size="3">Operating expenses</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="75"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(.20</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="22"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(.20</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(.59</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(.46</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367"><font face="Times New Roman" size="3">Interest expense</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="75"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="22"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367"><font face="Times New Roman" size="3">Income taxes</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="75"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="3">(.01</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="22"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="3">(.01</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="3">(.03</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="3">(.01</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367"><font face="Times New Roman" size="3">Net investment income</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="75"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">2.53</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="22"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">.46</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">2.80</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">9.4</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367"><font face="Times New Roman" size="3">Distributions from undistributed</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="75">
                </td>

                <td width="85">
                </td>

                <td width="17">
                </td>

                <td width="22">
                </td>

                <td width="85">
                </td>

                <td width="17">
                </td>

                <td width="23">
                </td>

                <td width="85">
                </td>

                <td width="18">
                </td>

                <td width="23">
                </td>

                <td width="85">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom" height="15">
                <td align="left" width="367"><font face="Times New Roman" size="3">&nbsp;&nbsp;net investment income</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="75"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(2.56</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="22"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(.40</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(3.28</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(.60</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367"><font face="Times New Roman" size="3">Net realized gain (loss) on investments</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="75"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">2.87</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="22"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(.12</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">2.86</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">.06</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367"><font face="Times New Roman" size="3">Net decrease in unrealized appreciation</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="75">
                </td>

                <td width="85">
                </td>

                <td width="17">
                </td>

                <td width="22">
                </td>

                <td width="85">
                </td>

                <td width="17">
                </td>

                <td width="23">
                </td>

                <td width="85">
                </td>

                <td width="18">
                </td>

                <td width="23">
                </td>

                <td width="85">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367"><font face="Times New Roman" size="3">&nbsp;&nbsp;of investments</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="75"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(17.94</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="22"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(16.66</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(26.29</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(47.77</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367"><font face="Times New Roman" size="3">Treasury stock repurchase *</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="75"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="22"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">1.40</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367"><font face="Times New Roman" size="3">Exercise of employee stock options **</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="75"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="22"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(.09</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367"><font face="Times New Roman" size="3">Stock option expense</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="75"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="3">.04</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="22"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="3">.02</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="3">.10</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="3">.05</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367"><font face="Times New Roman" size="3">Decrease in net asset value</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="75"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(15.06</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="22"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(16.70</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(22.41</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="3">)</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(47.41</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367"><font face="Times New Roman" size="3">Net asset value:</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="75">
                </td>

                <td width="85">
                </td>

                <td width="17">
                </td>

                <td width="22">
                </td>

                <td width="85">
                </td>

                <td width="17">
                </td>

                <td width="23">
                </td>

                <td width="85">
                </td>

                <td width="18">
                </td>

                <td width="23">
                </td>

                <td width="85">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning of period</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="75"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="3">142.74</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="22"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="3">156.04</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="3">150.09</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="85"><font face="Times New Roman" size="3">186.75</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="75">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="3">$127.68</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="22">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="3">$139.34</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="3">$127.68</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="85"><font face="Times New Roman" size="3">$139.34</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367"><font face="Times New Roman" size="3">Shares outstanding at end of period</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="75">
                </td>

                <td width="85">
                </td>

                <td width="17">
                </td>

                <td width="22">
                </td>

                <td width="85">
                </td>

                <td width="17">
                </td>

                <td width="23">
                </td>

                <td width="85">
                </td>

                <td width="18">
                </td>

                <td width="23">
                </td>

                <td width="85">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="367"><font face="Times New Roman" size="3">&nbsp;&nbsp;(000s omitted)</font></td>

                <td align="left" width="7"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="75"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">3,742</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="22"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">3,889</font></td>

                <td align="left" width="17"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">3,742</font></td>

                <td align="left" width="18"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">3,889</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left">* &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase is due to purchases of Common Stock at prices less than beginning period net asset value.&nbsp;</p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net decrease is due to the exercise of employee stock options at prices less than beginning of period net asset value.</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font size="2">16</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade size="2">
        </div>

        <p align="justify">Notes to Consolidated Financial Statements<br>
        (continued)</p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share Repurchase Plan</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">On June 12, 2008, the Company announced that its Board of Directors authorized a share repurchase plan, which allowed for the repurchase of up to 10 percent (or 388,915 shares) of its Common Stock at prices not above the lower of the net asset value per share of its Common Stock, or prices prevailing in
        the over-the-counter market at the time of such purchases. The repurchase program remained in effect through December 10, 2008. The Company did not make purchases under the plan during the quarter ended December 31, 2008. In total the Company purchased 147,513 shares of Common Stock for $16,903,346 at an average price of $114.59 per share, on the open market, while the plan was in effect.</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recent Accounting Pronouncements</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">In September 2006, the FASB issued Statement of Financial Accounting Standard No. 157, &ldquo;Fair Value Measurements&rdquo; (SFAS 157). The standard defines fair value, outlines a framework for measuring fair value, and details the required disclosures about fair value measurements. The standard is
        effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The Company has adopted this statement on a prospective basis beginning in the quarter ended June 30, 2008. Adoption of this statement did not have a material effect on the Company&rsquo;s consolidated financial statements for the period ended June 30, 2008. However, the impact on its consolidated financial statements for the periods subsequent to
        the period of adoption cannot be determined at this time as it will be influenced by the estimates of fair value for those periods, the number and amount of investments the Company originates, acquires or exits, and the effect of any additional guidance or any changes in the interpretation of this statement.</p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">In February 2007, the FASB issued SFAS No. 159, &ldquo;The Fair Value Option for Financial Assets and Financial Liabilities&rdquo; (SFAS 159). SFAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value and establishes presentation and disclosure
        requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. SFAS 159 is effective for us beginning April 1, 2008. We did not elect the fair value option provisions upon adoption of SFAS 159 on April 1, 2008.</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">In February 2008, the FASB issued FASB Staff Position (&ldquo;FSP&rdquo;) SFAS 157-2, &ldquo;Effective Date of FASB Statement No. 157&rdquo; (FSP 157-2), which defers the effective date of SFAS 157 to fiscal years beginning after November 15, 2008, and interim periods within those fiscal years, for all
        nonfinancial assets and nonfinancial liabilities, except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). We are currently evaluating the impact of our adoption of FSP 157-2 effective April 1, 2009 on our consolidated financial statements.</p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October 2008, the FASB issued Staff Position 157-3, &ldquo;Determining the Fair Value of a Financial Asset in a Market That Is Not Active&rdquo; (&ldquo;FSP 157-3&rdquo;), which clarifies the application of SFAS 157 in an inactive market and provides an illustrative
        example to demonstrate how the fair value of a financial asset is determined when the market for that financial asset is not active. The guidance provided by FSP 157-3 is consistent with Capital Southwest&rsquo;s approach to valuing financial assets for which there are no active markets.</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Item 2. Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">Net asset value at December 31, 2008 was $477,738,322, equivalent to $127.68 per share. Assuming reinvestment of all dividends and tax credits on retained long-term capital gains, the December 31, 2008 net asset value reflects a decrease of 3.71% during the past twelve months.</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font size="2">17</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade size="2">
        </div>

        <p align="left"></p>

        <table cellspacing="0" cellpadding="0" width="60%" border="0">
            <tr>
                <td width="60%">Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations</td>
            </tr>

            <tr>
                <td width="60%">(continued)</td>
            </tr>
        </table>
        <br>
        <br>

        <p align="left"></p>

        <table cellspacing="0" cellpadding="0" width="75%" align="center" border="0">
            <tr valign="bottom">
                <td align="left" width="357">
                </td>

                <td align="left" width="20"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="85">
                    <p align="center"><font face="Times New Roman" size="3">December 31,</font></p>
                </td>

                <td align="left" width="21"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="85">
                    <p align="center"><font face="Times New Roman" size="3">December 31,</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" height="13">
                <td width="357"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="3">2008</font></p>
                </td>

                <td align="left" width="21"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="3">2007</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="357"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23">
                </td>

                <td align="right" width="85"><font face="Times New Roman" size="3">$477,738,322</font></td>

                <td align="left" width="21"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="16">
                </td>

                <td align="right" width="85"><font face="Times New Roman" size="3">$541,924,018</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="357"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares outstanding</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">3,741,638</font></td>

                <td align="left" width="21"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="16"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">3,889,151</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="357"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets per share</font></td>

                <td align="left" width="20"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="26"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="23">
                </td>

                <td align="right" width="85"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 127.68</font></td>

                <td align="left" width="21"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="16">
                </td>

                <td align="right" width="85"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 139.34</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td colspan="3">
                </td>

                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>
        </table>
        <font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><br>
        <br>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"></p>

        <p></p>

        <p></p>
        <b>Results of Operations</b><br>
        <br>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">The composite measure of our financial performance in the Consolidated Statements of Operations is captioned &ldquo;Increase (decrease) in net assets from operations&rdquo; and consists of three elements. The first is &ldquo;Net investment income,&rdquo; which is the difference between our income from
        interest, dividends and fees and our combined operating and interest expenses, net of applicable income taxes. The second element is &ldquo;Net realized gain (loss) on investments&rdquo;, which is the difference between the proceeds received from disposition of portfolio securities and their stated cost. The third element is the &ldquo;Net increase (decrease) in unrealized appreciation of investments,&rdquo; which is the net change in the market or fair value of our investment
        portfolio, compared with stated cost. It should be noted that the &ldquo;Net realized gain (loss) on investments&rdquo; and &ldquo;Net increase (decrease) in unrealized appreciation of investments&rdquo; are directly related in that when an appreciated portfolio security is sold to realize a gain, a corresponding decrease in net unrealized appreciation occurs by transferring the gain associated with the transaction from &ldquo;unrealized&rdquo; to &ldquo;realized.&rdquo; Conversely,
        when a loss is realized on a depreciated portfolio security, an increase in net unrealized appreciation occurs.</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><em>Net Investment Income</em><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income of $1,052,625 for the nine months ended December 31, 2008 decreased from $1,797,079 in the year-ago period due to a decrease in excess cash and interest rates. During the nine months ended December 31, 2008 and 2007, we recorded dividend income from the
        following sources:</p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="60%" align="center" border="0">
            <tr valign="bottom">
                <td align="left" width="3%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="3%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="51%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="3%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td colspan="4">
                    <p align="center"><font face="Times New Roman" size="3">Nine Months Ended&nbsp;</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="3">December</font></p>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="3">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid">
                    <p align="center"><font face="Times New Roman" size="3">2007</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">Alamo Group Inc.</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="right"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp; 509,454</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td align="right"><font face="Times New Roman" size="3">$&nbsp;&nbsp; 508,914</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">Balco, Inc.</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">0</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">224,400</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">CapitalSouth Partners</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">20,519</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">0</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">Dennis Tool Company</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">37,499</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">49,999</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">Encore Wire Corporation</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">245,205</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">245,205</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">Heelys, Inc.</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">9,317,310</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">0</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">Kimberly-Clark Corporation</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">89,529</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">122,716</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">Lifemark Group</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">0</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">571,333</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">PETsMart, Inc.</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">18,000</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">27,000</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">The RectorSeal Corporation</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">480,000</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">914,133</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">TCI Holdings, Inc.</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">60,953</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">60,953</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">The Whitmore Manufacturing Company</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">120,000</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">228,533</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">Other</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">51,039</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right"><font face="Times New Roman" size="3">50,465</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="3">$10,949,508</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right">
                </td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right"><font face="Times New Roman" size="3">$3,003,651</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><i>Net Realized Gain on Investments</i>&nbsp;</p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the nine months ended December 31, 2008, the Company sold certain of its unrestricted marketable securities generating proceeds of $20,655,024, resulting in a net realized gain of $10,716,720; as compared with net realized gains of $240,024 during the nine months
        ended December 31, 2007.</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font size="2">18</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade size="2">
        </div>

        <p></p>

        <p></p>

        <p></p>

        <p align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="60%" border="0">
            <tr>
                <td width="60%">Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations</td>
            </tr>

            <tr>
                <td width="60%">(continued)</td>
            </tr>
        </table>
        <br>
        <br>

        <p align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the nine months ended December 31, 2008, the Company realized gains of 15,936,664, consisting primarily of $6,646,883 on Petsmart, Inc., $2,487,019 on Liberty Entertainment Group, and $1,991,256 on Kimberly-Clark, Inc. These unrestricted marketable securities were sold in connection with our major share repurchase plan, which was announced on
        June 12, 2008. It was announced that we would fund our repurchase plan through the use of cash on hand and or proceeds from the sale of our unrestricted marketable securities. Our repurchase plan expired on December 10, 2008.&nbsp;</p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the nine months ended December 31, 2007, the Company realized gains of $240,024 consisting of $546,221 of Alltel Corporation, $518,020 of Sterling Group Partners, and $245,950 of Exopack, Inc, which were offset by a realized loss of $1,070,167 from the sale of
        Hic-Star Corporation.</p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><i>Net Increase (Decrease) in Unrealized Appreciation of Investments</i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set forth in the following table are the significant increases and decreases in unrealized appreciation by portfolio company:</p>

        <p align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="85%" align="left" border="0">
            <tr valign="bottom">
                <td align="left" width="23%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="135"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td colspan="4">
                    <p align="center"><font face="Times New Roman" size="3">Three Months Ended&nbsp;</font></p>
                </td>

                <td align="left" width="3%">
                </td>

                <td align="right" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td colspan="4">
                    <p align="center"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;Nine Months Ended</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="135"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="3">December 31&nbsp;&nbsp;</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" colspan="4">
                    <p align="center"><font face="Times New Roman" size="3">December 31&nbsp;&nbsp;</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom" height="14">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="135"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="78">
                    <p align="center"><font face="Times New Roman" size="3">2008</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="3">2007</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="3">2008</font></p>
                </td>

                <td align="left" width="25"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="85">
                    <p align="center"><font face="Times New Roman" size="3">2007</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Alamo Group Inc.</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="135">
                </td>

                <td align="right" width="78"><font face="Times New Roman" size="3">$(3,537,875</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right">
                </td>

                <td align="right" width="85"><font face="Times New Roman" size="3">$(9,905,950</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right">
                </td>

                <td align="right" width="85"><font face="Times New Roman" size="3">$(14,859,075</font></td>

                <td align="left" width="25"><font face="Times New Roman" size="3">)</font></td>

                <td align="right">
                </td>

                <td align="right" width="85"><font face="Times New Roman" size="3">$(9,878,840</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">All Components, Inc.</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="135"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="78"><font face="Times New Roman" size="3">(2,399,999</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(9,599,999</font></td>

                <td align="left" width="25"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">5,600,000</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Encore Wire Corporation</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="135"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="78"><font face="Times New Roman" size="3">6,130,125</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(30,650,750</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">10,216,875</font></td>

                <td align="left" width="25"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(24,520,750</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Heelys, Inc.</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="135"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="78"><font face="Times New Roman" size="3">(16,305,293</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(18,634,760</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(16,305,293</font></td>

                <td align="left" width="25"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(158,394,760</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Media Recovery, Inc.</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="135"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="78"><font face="Times New Roman" size="3">(3,600,000</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">&ndash;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(9,100,000</font></td>

                <td align="left" width="25"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(9,000,000</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Palm Harbor Homes, Inc.</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="135"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="78"><font face="Times New Roman" size="3">(9,818,901</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(11,782,713</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(5,891,341</font></td>

                <td align="left" width="25"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(19,637,713</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">The RectorSeal Corporation</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="135"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="78"><font face="Times New Roman" size="3">(4,200,000</font></td>

                <td align="left"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">11,150,000</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">(16,900,000</font></td>

                <td align="left" width="25"><font face="Times New Roman" size="3">)</font></td>

                <td align="right"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="85"><font face="Times New Roman" size="3">22,000,000</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>
        </table>

        <p>&nbsp;</p>

        <p>&nbsp;</p>

        <p>&nbsp;</p>

        <p>&nbsp;</p>

        <p><br>
        &nbsp;</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;During the nine months ended December 31, 2008, the value of our investments in The RectorSeal Corporation decreased by $16,900,000, All Components, Inc. decreased $9,599,999 and Media Recovery, Inc decreased $9,100,000, due to decreases in their respective sales resulting from
        slowdowns in segments of their businesses. Additionally, our investments in Alamo Group Inc. decreased $14,859,075; Heelys Inc. decreased $16,305,293; and Palm Harbor Homes, Inc. decreased $5,891,341 due primarily to the decreases in their respective stock prices at December 31, 2008. Offsetting the aforementioned losses during the nine months ended December 31, 2008, was a $10,216,875 increase in the value of Encore Wire Corporation due primarily to an increase in their stock price at
        December 31, 2008.<font style="FONT-SIZE: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify"><b>Portfolio Investments</b></p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b> During the quarter ended December 31, 2008, we made investments of $4,000,000 in one new portfolio company and investments of $3,646,287 in existing portfolio companies.</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have agreed, subject to certain conditions, to invest up to $9,963,070 in seven portfolio companies.</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left"><b>Financial Liquidity and Capital Resources</b></p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December 31, 2008, we had cash and cash equivalents of approximately $21.6 million. Pursuant to Small Business Administration (SBA) regulations, cash and cash equivalents of $5.2 million held by Capital Southwest Venture Corporation (CSVC)
        may not be transferred or advanced to us without the consent of the SBA. Under current SBA regulations and subject to SBA&rsquo;s approval of its credit application, CSVC would be entitled to borrow up to $17.0 million. With the exception of a capital gain distribution made in the form of a distribution of the stock of a portfolio company in the</p>

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        <p align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="60%" border="0">
            <tr>
                <td width="60%">Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations</td>
            </tr>

            <tr>
                <td width="60%">(continued)</td>
            </tr>
        </table>
        <br>
        <br>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">fiscal year ended March 31, 1996, we have elected to retain all gains realized during the past 40 years. Retention of future gains is viewed as an important source of funds to sustain our investment activity. Approximately $14.8 million of our investment portfolio is represented by unrestricted publicly-traded securities, and represent a source
        of liquidity.</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds to be used by us for operating or investment purposes may be transferred in the form of dividends, management fees or loans from The RectorSeal Corporation and The Whitmore Manufacturing Company, wholly-owned portfolio companies, to the extent of their available cash
        reserves and borrowing capacities.</p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management believes that our cash and cash equivalents and cash available from other sources described above are adequate to meet our expected requirements. Consistent with our long-term strategy, the disposition of investments from time to time may also be an important
        source of funds for future investment activities.<a name="OLE_LINK2"><br>
        <br>
        Item 3. Quantitative and Qualitative Disclosure About Market Risk</a></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11.5pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are subject to financial market risks, including changes in marketable equity security prices. We do not use derivative financial instruments to mitigate any of these risks.</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our investment performance is a function of our portfolio companies&rsquo; profitability, which may be affected by economic cycles, competitive forces, foreign currency fluctuations and production costs including labor rates, raw material prices and certain commodity
        prices. Most of the companies in our investment portfolio do not hedge their exposure to raw material and commodity price fluctuations. However, the portfolio company with the greatest exposure to foreign currency fluctuations generally hedges its exposure. All of these factors may have an adverse effect on the value of our investments on our net asset value.&nbsp;<br>
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Our investment in portfolio securities includes fixed-rate debt securities which totaled $9,263,000 at December 31, 2008, equivalent to 2.0% of the value of our total investments. Generally, these debt securities are below investment grade and have relatively high fixed rates of interest; therefore, minor changes in market yields of publicly-traded debt securities have little or no
        effect on the values of debt securities in our portfolio and no effect on interest income. Our investments in debt securities are generally held to maturity and their fair values are determined on the basis of the terms of the debt security and the financial condition of the issuer.&nbsp;<br>
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A portion of our investment portfolio consists of debt and equity securities of private companies. We anticipate little or no effect on the values of these investments from modest changes in public market equity valuations. Should significant changes in market valuations of comparable publicly-owned companies occur, there may be a corresponding effect on valuations of private companies, which would
        affect the value and the amount and timing of proceeds eventually realized from these investments. A portion of our investment portfolio also consists of restricted common stock of publicly-owned companies. The fair values of these restricted securities are influenced by the nature of applicable resale restrictions, the underlying earnings and financial condition of the issuers of such restricted securities and the market valuations of comparable publicly-owned companies. A portion of
        our investment portfolio also consists of unrestricted, freely marketable common stock of publicly-owned companies. These freely marketable investments, which are valued at the public market price, are directly exposed to equity price risks, in that a change in an issuer&rsquo;s public market equity price would result in an identical change in the fair value of our investment in such security.</p>

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            <a name="PAGENUM"><font size="2">20</font></a>
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        </div>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Item 4. Controls and Procedures</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of our management, including the&nbsp;&nbsp; Chairman of the Board and President and Chief Financial Officer, of the effectiveness of the design and operation of our
        disclosure controls and procedures (as defined in Rules 13a-15 and 15d-15 of the Securities Exchange Act of 1934). Based on that evaluation, the Chairman of the Board and President and Chief Financial Officer concluded that our disclosure controls and procedures are effective to ensure that the information required to be disclosed is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and is
        accumulated and communicated to management, including the&nbsp; Chairman of the Board and President and Chief Financial Officer&nbsp;&nbsp;, as appropriate, to allow timely decisions regarding such required disclosure.</p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">During the fiscal quarter ended December 31, 2008, there were no changes to the internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect our internal controls over financial reporting.</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="left"><b><u>PART II. OTHER INFORMATION</u></b></p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Item 1. Legal Proceedings</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are currently the subject of certain legal actions. In our judgment, none of the lawsuits currently pending against us, either individually or in the aggregate, is likely to have a material adverse effect on our business, results of operations, or financial position.</p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We, Capital Southwest Corporation and Capital Southwest Venture Corporation, have been named in a lawsuit filed on August 27, 2007 in the United States District Court of the Northern District of Texas, Dallas Division, against Heelys, Inc and its Chief Executive Officer,
        Chief Financial Officer and the directors who signed its registration statement with the Securities and Exchange Commission in connection with its December 7, 2006 initial public offering (&ldquo;IPO&rdquo;), and its underwriters for the IPO. The complaint alleges violations of Sections 11 and 15 of the Securities Act of 1933 and the plaintiffs are seeking compensatory damages in an unspecified amount, as well as reasonable costs and expenses incurred in the action, including counsel
        fees and expert fees.</p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Similar suits were also filed in 2007 and 2008 in the United States District Court of the Northern District of Texas making substantially similar allegations under Sections 11, 12 and 15 of the Securities Act of 1933, and seeking substantially similar damages.</p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that the plaintiffs&rsquo; claims are without merit, we deny the allegations in the complaints, and we intend to vigorously defend the lawsuits.</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Item 1A. Risk Factors</p>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">Deterioration in economic conditions could impair our portfolio companies, as a result, could reduce valuations and adversely affect our financial condition.</p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">Changes in national and local economic conditions could have a negative impact on our business. Many of the companies in which we have made or will make investments may be susceptible to economic slowdowns or recessions. An economic slowdown may affect the ability of a company to operate profitably,
        acquire other companies, or engage in a liquidity event such as a sale.</p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">Our business of making private equity investments also may be affected by current and future market conditions. As a result, the pace of our investment activity may slow. In addition, significant changes in the capital markets could have a negative effect on the valuations of our investments. This could
        have an adverse affect on our net asset value.</p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch"></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There have been no material changes to our risk factors as disclosed in Item 1A, &ldquo;Risk Factors&rdquo;, in our Annual Report on Form 10-K for the fiscal year ended March 31, 2008.</p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font size="2">21</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade size="2">
        </div>

        <p align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="60%" border="0">
            <tr>
                <td width="60%">Item 2. Unregistered Sales of Equity Securities and Use of Proceeds</td>
            </tr>

            <tr>
                <td width="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repurchases of Equity Securities</td>
            </tr>
        </table>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
        <br>

        <p></p>

        <p></p>

        <p style="FONT-SIZE: 10pt; TEXT-INDENT: 0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR First Line Ind .5 Inch" align="justify">The following table provides information for the nine months ended December 31, 2008, regarding shares of our common stock that were repurchased under our repurchase plan which began on June 12, 2008 when the Company announced that its Board of Directors authorized a share repurchase plan, which allowed
        for the repurchase of up to 10 percent (or 388,915 shares) of its Common Stock at prices not above the lower of the net asset value per share of its Common Stock, or prices prevailing in the over-the-counter market at the time of such purchases. The repurchase program remained in effect until its expiration date of December 10, 2008. The Company did not make purchases under the plan during the quarter ended December 31, 2008. In total the Company purchased 147,513 shares of Common Stock
        for $16,903,346 at an average price of $114.59 per share, on the open market, while the plan was in effect.</p>

        <p align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="bottom">
                <td align="left" width="28%">
                </td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="171"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="94">
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="100">
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="121">
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="105">
                    <p align="center"><font face="Times New Roman" size="3">Maximum</font></p>
                </td>

                <td align="left" width="2%"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="171"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="94">
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="100">
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="121">
                    <p align="center"><font face="Times New Roman" size="3">Total Number of</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="105">
                    <p align="center"><font face="Times New Roman" size="3">Number of</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="171"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="94">
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="100">
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="121">
                    <p align="center"><font face="Times New Roman" size="3">Shares Purchased</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="105">
                    <p align="center"><font face="Times New Roman" size="3">Shares that</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="171"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="94">
                    <p align="center"><font face="Times New Roman" size="3">Total Number</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="100">
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="121">
                    <p align="center"><font face="Times New Roman" size="3">as Part of</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="105">
                    <p align="center"><font face="Times New Roman" size="3">May be</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="171"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="94">
                    <p align="center"><font face="Times New Roman" size="3">of Shares</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="100">
                    <p align="center"><font face="Times New Roman" size="3">Average Price</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="121">
                    <p align="center"><font face="Times New Roman" size="3">Publicly</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="105">
                    <p align="center"><font face="Times New Roman" size="3">Purchased</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3"><u>Period</u></font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="171"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="94">
                    <p align="center"><font face="Times New Roman" size="3">Purchased</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="100">
                    <p align="center"><font face="Times New Roman" size="3">Paid Per Share</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="121">
                    <p align="center"><font face="Times New Roman" size="3">Announced Plan</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="105">
                    <p align="center"><font face="Times New Roman" size="3">Under the Plan</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">June 2008</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="171"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="94">
                    <p align="right"><font face="Times New Roman" size="3">6,485</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="100">
                    <p align="right"><font face="Times New Roman" size="3">$ 111.72</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="121">
                    <p align="right"><font face="Times New Roman" size="3">6,485</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="105"><font face="Times New Roman" size="3">382,430</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">July 2008</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="171"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="94">
                    <p align="right"><font face="Times New Roman" size="3">132,727</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="100">
                    <p align="right"><font face="Times New Roman" size="3">$ 114.08</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="121">
                    <p align="right"><font face="Times New Roman" size="3">139,212</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="105"><font face="Times New Roman" size="3">249,703</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">August 2008</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="171"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="94">
                    <p align="right"><font face="Times New Roman" size="3">8,201</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="100">
                    <p align="right"><font face="Times New Roman" size="3">$ 124.96</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="121">
                    <p align="right"><font face="Times New Roman" size="3">147,413</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="105"><font face="Times New Roman" size="3">241,502</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">September 2008</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="171"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="94">
                    <p align="right"><font face="Times New Roman" size="3">100</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="100">
                    <p align="right"><font face="Times New Roman" size="3">$ 125.18</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="121">
                    <p align="right"><font face="Times New Roman" size="3">147,513</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="105"><font face="Times New Roman" size="3">241,402</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">October 2008</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="171"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="94">
                    <p align="right"><font face="Times New Roman" size="3">--</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="100">
                    <p align="right"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;0</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="121">
                    <p align="right"><font face="Times New Roman" size="3">--</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="105"><font face="Times New Roman" size="3">241,402</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">November 2008</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="171"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="94">
                    <p align="right"><font face="Times New Roman" size="3">--</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="100">
                    <p align="right"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="121">
                    <p align="right"><font face="Times New Roman" size="3">--</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="105"><font face="Times New Roman" size="3">241,402</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">December 2008</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="171"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="94">
                    <p align="right"><font face="Times New Roman" size="3">--</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="100">
                    <p align="right"><font face="Times New Roman" size="3">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" width="121">
                    <p align="right"><font face="Times New Roman" size="3">--</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="right" width="105"><font face="Times New Roman" size="3">241,402</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">Total for the nine months</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="171"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="94">
                </td>

                <td width="19">
                </td>

                <td width="14">
                </td>

                <td width="100">
                </td>

                <td width="6">
                </td>

                <td width="10">
                </td>

                <td width="121">
                </td>

                <td width="6">
                </td>

                <td width="4">
                </td>

                <td width="8">
                </td>

                <td width="105">
                </td>

                <td>
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp; ended December 31, 2008</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="171"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" width="94">
                    <p align="right"><font face="Times New Roman" size="3">147,513</font></p>
                </td>

                <td align="left" width="19"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" width="100">
                    <p align="right"><font face="Times New Roman" size="3">$ 114.59</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="10"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" width="121">
                    <p align="right"><font face="Times New Roman" size="3">147,513</font></p>
                </td>

                <td align="left" width="6"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="right" width="8"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 2.25pt double" align="right" width="105"><font face="Times New Roman" size="3">241,402</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>

        <p></p>

        <p></p>

        <p>Item 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits</p>

        <p></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Exhibits</p>

            <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
                <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Exhibit 31.1- Certification of Chairman of the Board and President required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;), filed herewith.</p>
            </blockquote>
        </blockquote>

        <p></p>

        <p></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
                <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Exhibit 31.2- Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act, filed herewith.</p>
            </blockquote>
        </blockquote>

        <p></p>

        <p></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
                <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Exhibit 32.1- Certification of Chairman of the Board and President required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code, furnished herewith.</p>
            </blockquote>
        </blockquote>

        <p></p>

        <p></p>

        <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
            <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
                <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Exhibit 32.2- Certification of Chief Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code, furnished herewith.</p>
            </blockquote>
        </blockquote>

        <p></p>

        <p></p>

        <p></p>

        <p><br>
        &nbsp;</p>

        <p></p>

        <p></p>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
            <a name="PAGENUM"><font size="2">22</font></a>
        </div>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" color="#000000" noshade size="2">
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        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="left">
            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'TMS RMN'" align="center"><font style="FONT-SIZE: 11.5pt; FONT-FAMILY: 'TIMES NEW ROMAN'">SIGNATURES</font></p>

            <p></p>

            <p></p>

            <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR" align="justify">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</p>
        </div>

        <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="left">
            <table cellspacing="0" cellpadding="0" width="85%" border="0">
                <tr>
                    <td colspan="3">
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                    <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left" colspan="7"><font face="Times New Roman" size="3">CAPITAL SOUTHWEST CORPORATION&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>
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                    </td>

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                    </td>

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                    </td>

                    <td width="293">&nbsp;</td>

                    <td width="84">
                    </td>

                    <td>
                    </td>

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                    <font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td width="293">&nbsp;/s/ Gary L. Martin</td>

                    <td width="84">
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                    <td align="left" width="357"><font face="Times New Roman" size="3">Date:&nbsp;&nbsp; <u>February 6, 2009</u></font></td>

                    <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;By:</font></td>

                    <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="293"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left" width="84"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left">
                    </td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left">
                    </td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="357"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td width="293">Gary L. Martin, Chairman of the Board and President</td>

                    <td width="84">
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
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                    <td colspan="3">&nbsp;</td>

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                    </td>

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                    </td>
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                <tr>
                    <td colspan="3">
                    </td>

                    <td colspan="3">&nbsp;</td>

                    <td colspan="3">
                    </td>

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                    </td>
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                    <td align="left" width="357">
                    <font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td width="293">/s/ Tracy L. Morris</td>

                    <td width="84">
                    </td>

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                    </td>

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                    <td align="left" width="357"><font face="Times New Roman" size="3">Date:&nbsp;&nbsp; <u>February 6, 2009</u></font></td>

                    <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;By:</font></td>

                    <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td style="BORDER-BOTTOM: black 1px solid" align="left" width="293"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left" width="84"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left">
                    </td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td>
                    </td>

                    <td>
                    </td>

                    <td>
                    </td>
                </tr>

                <tr valign="bottom">
                    <td align="left" width="357"><font face="Times New Roman" size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>

                    <td align="left" width="27"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td align="left" width="14"><font face="Times New Roman" size="3">&nbsp;</font></td>

                    <td width="293">Tracy L. Morris, Chief Financial Officer</td>

                    <td width="84">
                    </td>

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                    </td>

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            &nbsp;
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            23
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>csw10qex311123108.htm
<TEXT>
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        <p></p>

        <p align="right">Exhibit 31.1</p>

        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>CERTIFICATIONS</b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">I, Gary L. Martin, Chairman of the Board and President of Capital Southwest Corporation, certify that:</font></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="top">
                <td align="left" width="27"><font face="Times New Roman" size="3">1.</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="0" colspan="2"><font face="Times New Roman" size="3">I have reviewed this quarterly report on Form 10-Q of Capital Southwest Corporation (the &ldquo;registrant&rdquo;);</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left" width="27">
                </td>

                <td align="left" width="4">
                </td>

                <td width="0" colspan="2">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="top">
                <td align="left" width="27"><font face="Times New Roman" size="3">2.</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="0" colspan="2">
                    <p align="justify"><font face="Times New Roman" size="3">Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left" width="27">
                </td>

                <td align="left" width="4">
                </td>

                <td width="0" colspan="2">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="top">
                <td align="left" width="27"><font face="Times New Roman" size="3">3.</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="0" colspan="2">
                    <p align="justify"><font face="Times New Roman" size="3">Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left" width="27">
                </td>

                <td align="left" width="4">
                </td>

                <td width="0" colspan="2">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="top">
                <td align="left" width="27"><font face="Times New Roman" size="3">4.</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="0" colspan="2">
                    <p align="justify"><font face="Times New Roman" size="3">The registrant&rsquo;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="top">
                <td colspan="3">
                </td>

                <td colspan="3">&nbsp;</td>

                <td colspan="2">
                </td>
            </tr>

            <tr valign="top">
                <td colspan="2">
                    <p align="center">&nbsp;</p>
                </td>

                <td valign="top" align="left" width="26">
                    <font face="Times New Roman" size="3">&nbsp;a)</font>

                    <p align="center">&nbsp;</p>
                </td>

                <td width="857">
                    <p align="justify"><font face="Times New Roman" size="3">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26">
                </td>

                <td width="857">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="top">
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26"><font face="Times New Roman" size="3">&nbsp;b)<font face="Times New Roman" size="3">&nbsp;</font></font></td>

                <td width="857">
                    <p align="justify"><font face="Times New Roman" size="3">Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26">
                </td>

                <td width="857">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="top">
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26"><font face="Times New Roman" size="3">&nbsp;c)<font face="Times New Roman" size="3">&nbsp;</font></font></td>

                <td width="857">
                    <p align="justify"><font face="Times New Roman" size="3">Evaluated the effectiveness of the registrant&rsquo;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26">
                </td>

                <td width="857">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="top">
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26"><font face="Times New Roman" size="3">&nbsp;d)<font face="Times New Roman" size="3">&nbsp;</font></font></td>

                <td width="857">
                    <p align="justify"><font face="Times New Roman" size="3">Disclosed in this report any change in the registrant&rsquo;s internal control over financial reporting that occurred during the registrant&rsquo;s most recent fiscal quarter (the registrant&rsquo;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&rsquo;s internal control over financial reporting; and</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left" width="27">
                </td>

                <td align="left" width="4">
                </td>

                <td width="0" colspan="2">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="top">
                <td align="left" width="27"><font face="Times New Roman" size="3">5.</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="0" colspan="2">
                    <p align="justify"><font face="Times New Roman" size="3">The registrant&rsquo;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&rsquo;s auditors and the audit committee of the registrant&rsquo;s board of directors (or persons performing the equivalent functions):</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26">
                </td>

                <td width="857">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="top">
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26"><font face="Times New Roman" size="3">&nbsp;a)<font face="Times New Roman" size="3">&nbsp;</font></font></td>

                <td width="857">
                    <p align="justify"><font face="Times New Roman" size="3">All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&rsquo;s ability to record, process, summarize and report financial information; and</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26">
                </td>

                <td width="857">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="top">
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26"><font face="Times New Roman" size="3">&nbsp;b)<font face="Times New Roman" size="3">&nbsp;</font></font></td>

                <td width="857">
                    <p align="justify"><font face="Times New Roman" size="3">Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&rsquo;s internal control over financial reporting.</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>
            </tr>
        </table>
        <br>
        <br>

        <p style="FONT-SIZE: 10pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -0.5in; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; EEPStyleName: Para Just 10pt TNR Hang Ind Lev 0" align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" align="right" border="0">
            <tr valign="bottom">
                <td align="left" width="28%"><font face="Times New Roman" size="3">Date: <u>February 6, 2009</u></font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="259"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left" width="379"><font face="Times New Roman" size="3">By: /s/ Gary L. Martin</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="259"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="379"><font face="Times New Roman" size="3">Gary L. Martin, Chairman of the Board and President</font></td>

                <td align="left" width="29"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>
        <br>
        <br>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
    </body>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>csw10qex312123108x.htm
<TEXT>
<html>
    <head>
        <title></title>
        <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
        <!-- Control Number:                                                                  -->
        <!-- Rev Number:                                                                      -->
        <!-- Client Name:                                                                     -->
        <!-- Project Name:                                                                    -->
        <!-- Firm Name:                                                                       -->
    </head>

    <body text="#000000" vlink="#800000" link="#0000ff" bgcolor="#ffffff">
        <p align="right">Exhibit 31.2</p>

        <p align="center"><strong>CERTIFICATIONS</strong></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">I, Tracy L. Morris, Chief Financial Officer of Capital Southwest Corporation, certify that:</font></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="top">
                <td align="left" width="27"><font face="Times New Roman" size="3">1.</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="0" colspan="2"><font face="Times New Roman" size="3">I have reviewed this quarterly report on Form 10-Q of Capital Southwest Corporation (the &ldquo;registrant&rdquo;);</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left" width="27">
                </td>

                <td align="left" width="4">
                </td>

                <td width="0" colspan="2">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="top">
                <td align="left" width="27"><font face="Times New Roman" size="3">2.</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="0" colspan="2">
                    <p align="justify"><font face="Times New Roman" size="3">Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left" width="27">
                </td>

                <td align="left" width="4">
                </td>

                <td width="0" colspan="2">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="top">
                <td align="left" width="27"><font face="Times New Roman" size="3">3.</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="0" colspan="2">
                    <p align="justify"><font face="Times New Roman" size="3">Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left" width="27">
                </td>

                <td align="left" width="4">
                </td>

                <td width="0" colspan="2">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="top">
                <td align="left" width="27"><font face="Times New Roman" size="3">4.</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="0" colspan="2">
                    <p align="justify"><font face="Times New Roman" size="3">The registrant&rsquo;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="top">
                <td colspan="3">
                </td>

                <td colspan="3">&nbsp;</td>

                <td colspan="2">
                </td>
            </tr>

            <tr valign="top">
                <td colspan="2">
                    <p align="center">&nbsp;</p>
                </td>

                <td valign="top" align="left" width="26">
                    <font face="Times New Roman" size="3">&nbsp;a)</font>

                    <p align="center">&nbsp;</p>
                </td>

                <td width="857">
                    <p align="justify"><font face="Times New Roman" size="3">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26">
                </td>

                <td width="857">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="top">
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26"><font face="Times New Roman" size="3">&nbsp;b)<font face="Times New Roman" size="3">&nbsp;</font></font></td>

                <td width="857">
                    <p align="justify"><font face="Times New Roman" size="3">Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26">
                </td>

                <td width="857">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="top">
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26"><font face="Times New Roman" size="3">&nbsp;c)<font face="Times New Roman" size="3">&nbsp;</font></font></td>

                <td width="857">
                    <p align="justify"><font face="Times New Roman" size="3">Evaluated the effectiveness of the registrant&rsquo;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26">
                </td>

                <td width="857">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="top">
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26"><font face="Times New Roman" size="3">&nbsp;d)<font face="Times New Roman" size="3">&nbsp;</font></font></td>

                <td width="857">
                    <p align="justify"><font face="Times New Roman" size="3">Disclosed in this report any change in the registrant&rsquo;s internal control over financial reporting that occurred during the registrant&rsquo;s most recent fiscal quarter (the registrant&rsquo;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&rsquo;s internal control over financial reporting; and</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left" width="27">
                </td>

                <td align="left" width="4">
                </td>

                <td width="0" colspan="2">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="top">
                <td align="left" width="27"><font face="Times New Roman" size="3">5.</font></td>

                <td align="left" width="4"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="0" colspan="2">
                    <p align="justify"><font face="Times New Roman" size="3">The registrant&rsquo;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&rsquo;s auditors and the audit committee of the registrant&rsquo;s board of directors (or persons performing the equivalent functions):</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26">
                </td>

                <td width="857">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="top">
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26"><font face="Times New Roman" size="3">&nbsp;a)<font face="Times New Roman" size="3">&nbsp;</font></font></td>

                <td width="857">
                    <p align="justify"><font face="Times New Roman" size="3">All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&rsquo;s ability to record, process, summarize and report financial information; and</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr>
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26">
                </td>

                <td width="857">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td>
                </td>

                <td>
                </td>
            </tr>

            <tr valign="top">
                <td align="left" colspan="2">
                </td>

                <td align="left" width="26"><font face="Times New Roman" size="3">&nbsp;b)<font face="Times New Roman" size="3">&nbsp;</font></font></td>

                <td width="857">
                    <p align="justify"><font face="Times New Roman" size="3">Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&rsquo;s internal control over financial reporting.</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                </td>

                <td>
                </td>
            </tr>
        </table>
        <br>
        <br>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td colspan="3">
                </td>

                <td colspan="3">
                </td>
            </tr>

            <tr valign="bottom">
                <td align="left" width="33%"><font face="Times New Roman" size="3">Date: <u>February 6, 2009</u></font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="216"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left" width="294"><font face="Times New Roman" size="3">By:/s/ Tracy L. Morris</font></td>

                <td align="left" width="109"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td align="left">
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="216"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="294"><font face="Times New Roman" size="3">Tracy L. Morris, Chief Financial Officer</font></td>

                <td align="left" width="109"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>
        </table>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>csw10qex321123108.htm
<TEXT>
<html>
    <head>
        <title></title>
        <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
        <!-- Control Number:                                                                  -->
        <!-- Rev Number:                                                                      -->
        <!-- Client Name:                                                                     -->
        <!-- Project Name:                                                                    -->
        <!-- Firm Name:                                                                       -->
    </head>

    <body text="#000000" vlink="#800000" link="#0000ff" bgcolor="#ffffff">
        <p align="right">Exhibit 32.1</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>Certification of Chairman of the Board and President&nbsp;</b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code</b></p>

        <p align="justify">I, Gary L. Martin, Chairman of the Board and President of Capital Southwest Corporation, certify that, to my knowledge:</p>

        <p align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="top">
                <td align="left" width="1"><font face="Times New Roman" size="3">1.</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td width="97%">
                    <p align="justify"><font face="Times New Roman" size="3">the Form 10-Q, filed with the Securities and Exchange Commission on February 6, 2009 (&ldquo;accompanied report&rdquo;) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</font></p>
                </td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr>
                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">
                </td>

                <td align="left">&nbsp;</td>

                <td align="left">
                </td>

                <td align="left">
                </td>
            </tr>

            <tr valign="top">
                <td align="left"><font face="Times New Roman" size="3">2.</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td>
                    <p align="justify"><font face="Times New Roman" size="3">the information contained in the accompanied report fairly presents, in all material respects, the consolidated financial condition and results of operations of Capital Southwest Corporation.</font></p>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>


        <p>&nbsp;</p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" align="right" border="0">
            <tr valign="bottom">
                <td align="left" width="28%"><font face="Times New Roman" size="3">Date: <u>February 6, 2009</u></font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="259"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td style="BORDER-BOTTOM: black 1px solid" align="left" width="368"><font face="Times New Roman" size="3">By: /s/ Gary L. Martin</font></td>

                <td align="left" width="40"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>

            <tr valign="bottom">
                <td>
                </td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="259"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left" width="368"><font face="Times New Roman" size="3">Gary L. Martin, Chairman of the Board and President</font></td>

                <td align="left" width="40"><font face="Times New Roman" size="3">&nbsp;</font></td>

                <td align="left"><font face="Times New Roman" size="3">&nbsp;</font></td>
            </tr>
        </table>
        <br>
        <br>
        <br>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>
    </body>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>5
<FILENAME>csw10qex322123108.htm
<TEXT>
<html>
    <head>
        <title></title>
        <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
        <!-- Control Number:                                                                  -->
        <!-- Rev Number:                                                                      -->
        <!-- Client Name:                                                                     -->
        <!-- Project Name:                                                                    -->
        <!-- Firm Name:                                                                       -->
    </head>

    <body text="#000000" vlink="#800000" link="#0000ff" bgcolor="#ffffff">
        <p align="right">Exhibit 32.2</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>Certification of Chief Financial Officer</b></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code</b></p>

        <p align="justify">I, Tracy L. Morris, Chief Financial Officer of Capital Southwest Corporation, certify that, to my knowledge:</p>

        <p align="justify"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr valign="top">
                <td align="left" width="1"><font face="Times New Roman" size="3">1.</font></td>

                <td align="left" width="1%"><font face="Times New Roman" size="3">&nbsp;</font></td>

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                    <p align="justify"><font face="Times New Roman" size="3">the Form 10-Q, filed with the Securities and Exchange Commission on February 6, 2009 (&ldquo;accompanied report&rdquo;) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</font></p>
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                <td align="left"><font face="Times New Roman" size="3">2.</font></td>

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                    <p align="justify"><font face="Times New Roman" size="3">the information contained in the accompanied report fairly presents, in all material respects, the consolidated financial condition and results of operations of Capital Southwest Corporation.</font></p>
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                <td align="left" width="33%"><font face="Times New Roman" size="3">Date: <u>February 6, 2009</u></font></td>

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                <td style="BORDER-BOTTOM: black 1px solid" align="left" width="298"><font face="Times New Roman" size="3">By:/s/ Tracy L. Morris</font></td>

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                <td align="left" width="298"><font face="Times New Roman" size="3">Tracy L. Morris, Chief Financial Officer</font></td>

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