MVC Capital Announces Pursuit Of Strategic Options For U.S. Gas & Electric, Inc.

MVC Capital, Inc. (NYSE: MVC) (the "Fund"), a publicly traded business development company that makes private debt and equity investments, today announced that U.S. Gas & Electric, Inc. (“USG&E”), an MVC portfolio company, has engaged a Tier I investment bank to lead the pursuit of strategic alternatives for USG&E to maximize shareholder value, including a public equity offering (potentially in Canada) or a sale, which could monetize all or a portion of the Fund’s investment.

USG&E, headquartered in North Miami Beach, Florida, is a retail energy marketer that sells natural gas and electricity to residential and small commercial customers. Due to organic growth in the Company and through strategic acquisitions which the Fund arranged, MVC’s positions in USG&E have grown to be approximately 20% of the Fund’s portfolio as of January 31, 2012. A monetization event is being sought for fiscal 2012.

“We are hopeful that we can foster a key liquidity event for the Fund’s shareholders,” said Michael Tokarz, Chairman and Portfolio Manager of MVC. “We have spent a significant amount of time with USG&E over the last four plus years and take pride in working with this management team. We are pleased with the prospect of the strategic opportunities being pursued,” said Puneet Sanan, Chairman of USG&E and Managing Director of The Tokarz Group Advisers, LLC.


Important Disclosures

This communication does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of any shares referred to herein (including in MVC Capital, Inc. or U.S. Gas & Electric, Inc.) in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.

About MVC Capital, Inc.

MVC is a business development company traded on the New York Stock Exchange that provides long-term debt and equity investment capital to fund growth, acquisitions and recapitalizations of companies in a variety of industries. For additional information about MVC, please visit the MVC's website at For MVC's investor relations, please call 914-510-9400. All media inquiries should be directed to Nathaniel Garnick at 212-687-8080.

Forward-Looking Statements

The information contained in this press release contains forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, and these factors are enumerated in the company's periodic filings with the Securities and Exchange Commission.

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