<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a5519005ex99_1.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
                                                                    Exhibit 99.1

                Gladstone Capital Prices Shelf Offering

     MCLEAN, Va.--(BUSINESS WIRE)--Oct. 16, 2007--Gladstone Capital
Corporation (NASDAQ:GLAD) (the "Company") today announced that it has
priced a public offering of 2,500,000 shares of common stock in an
underwritten public offering. Pricing was set at $18.70 per share, and
net proceeds from the offering, after deducting expenses payable by the
Company, are expected to be approximately $43,745,000. The proceeds will
be used for the repayment of existing short-term debt under the
Company's line of credit.

    The underwriter has been granted an option, exercisable for 30
days, to purchase up to 375,000 additional shares of common stock to
cover overallotments, if any. The underwriter of the offering is
Deutsche Bank Securities Inc. The offering is subject to customary
closing conditions and is expected to close on October 19, 2007.

    The shares will be sold pursuant to an effective shelf
registration statement on Form N-2 that has been filed with the U.S.
Securities and Exchange Commission (the "Commission").

    Investors are advised to carefully consider the investment
objectives, risks and charges and expenses of the Company before
investing. The prospectus supplement dated October 15, 2007 and the
accompanying prospectus dated July 5, 2007, which have been filed with
the Commission, contain this and other information about the Company
and should be read carefully before investing.

    This press release does not constitute an offer to sell or the
solicitation of an offer to buy the securities described herein, nor
shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities
laws of any such state or jurisdiction. These securities are only
being offered pursuant to a prospectus and prospectus supplement,
which may be obtained from the Company's website at
www.GladstoneCapital.com.

    Gladstone Capital is a specialty finance company that invests in
debt securities consisting primarily of senior term loans, second lien
loans, and senior subordinate loans in small and medium sized
businesses. For more information please visit our website at
www.GladstoneCapital.com.

    For further information contact our Investor Relations department
at 703-287-5835.

    This press release may include statements that may constitute
"forward-looking statements," including statements with regard to the
future performance of the Company. Words such as "should," "believes,"
"feel," "expects," "projects," "strive," "goals," and "future" or
similar expressions are intended to identify forward-looking
statements. These forward-looking statements inherently involve
certain risks and uncertainties, although they are based on the
Company's current plans that are believed to be reasonable as of the
date of this press release. Factors that may cause the Company's
actual results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity,
performance or achievements expressed or implied by such
forward-looking statements include, among others, those factors listed
under the caption "Risk factors" of the Company's prospectus dated
July 5, 2007, as filed with the Securities and Exchange Commission on
July 5, 2007. The Company undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

    CONTACT: Gladstone Capital Corporation
             Kerry Finnegan, 703-287-5893
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