MCLEAN, Va., Jan. 3, 2011  -- Gladstone Investment Corporation (Nasdaq: GAIN) (the "Company") announced that on December 30, 2010, it sold its equity investment and received full repayment of its debt investment in Chase II Holding Corporation ("Chase Doors"). In March 2006, the Company made its original equity investment and provided debt financing in support of a management-led buyout of Chase Doors.

"Gladstone Investment has enjoyed an excellent relationship with the talented management team at Chase Doors. The team achieved outstanding results in growing the business and building value in a challenging economic environment," said Dave Dullum, the Company's President. "In addition to the monthly dividends we pay to our stockholders from the current income on our debt and mezzanine investments, we also seek to achieve capital gains from the equity portions of our investments. In this regard, the Chase Doors transaction, similar to the A. Stucki Holding Corporation exit in June 2010, is a significant and successful realization of a capital gain from our investment strategy."

Gladstone Investment Corporation is a publicly traded business development company that seeks to make debt and equity investments in small and mid-sized businesses in the United States in connection with acquisitions, changes in control and recapitalizations. Additional information on this sale and the business of all the Gladstone Funds can be found at www.gladstonecompanies.com.

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

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