MVC Capital Announces Second Quarter Fiscal 2012 Results

MVC Capital, Inc. (NYSE: MVC), a publicly traded business development company that makes private equity and debt investments, today announced its financial results for the second fiscal quarter ended April 30, 2012.

As of April 30, 2012, the Company's net assets were approximately $406.3 million, or $16.99 per share, compared with net assets of approximately $407.6 million, or $17.04 per share, at the beginning of the quarter and $414.3 million, or $17.32 per share, at the end of the same period last year. During the quarter, the Valuation Committee, which is comprised of three independent directors, adjusted the fair values of nine portfolio companies, resulting in a net decrease of approximately $858,000 or $0.04 per share. In arriving at these determinations and consistent with the Company's valuation procedures and ASC 820, the Valuation Committee took into account many factors, including the performance of the portfolio companies, as well as the impact of changes in market multiples within certain sectors and fluctuations in currency valuations, particularly the Euro.

In the second quarter of 2012, the Company earned approximately $14.6 million in interest and dividend income and approximately $1.5 million in fee and other income, representing an increase in total operating income of approximately $11.6 million as compared to the same quarter in 2011. The primary reason for the increase in total operating income was a result of the recapitalization of Summit Research Labs, Inc. (“Summit”), which paid a $12 million dividend to the Company on March 7, 2012.

The Company reported net operating income of approximately $14.2 million for the second quarter, as compared to net operating income of approximately $65,000 for the same quarter in 2011. The Company continued to manage its ordinary operating expenses at comparable levels to last year. During the quarter, the Company made one follow-on investment in the amount of $48,000 in SHL Group LTD. During the six month period ended April 30, 2012, the Company made one new investment and five follow-on investments in three existing portfolio companies totaling approximately $7.4 million.

"We continue to work with our portfolio companies and their management teams to seek to strengthen performance and uncover potential growth opportunities and monetizations," said Michael Tokarz, Chairman and Portfolio Manager. "Our work over the years in advising our portfolio companies has paved the way for distribution opportunities like that of Summit’s, whose financial health supported a dividend to MVC that has allowed the Company to earn 24% more in total operating income in the first six months of fiscal 2012 than in the entire fiscal 2011 year.”

As of April 30, 2012, the Company had 34 investments across 27 industries with approximately 79% of our portfolio comprised of equity investments and approximately 21% comprised of debt and yielding investments.

Subsequent to the quarter-end, the Company through MVC Partners and MVCFS contributed approximately $1.9 million to the MVC Private Equity Fund L.P., which made an investment in Focus Pointe Global Holdings, Inc., a leading provider of marketing research data collection. To date, MVC Capital has invested approximately $8.2 million into the MVC Private Equity Fund, L.P. Additionally, as previously announced on June 8, 2012, the Company invested $1.5 million in Biovation Holdings Inc, a manufacturer and marketer of environmentally friendly, organic and sustainable laminate materials and composites.

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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 www.mvccapital.com. 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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