MCG Capital Announces Amendments to Unsecured Debt Agreements

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A one year maturity extension of the Series 2005-A Notes to October
11, 2011.

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A 100 basis point increase in the interest rate for the Series 2005-A
Notes to 9.98%.

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A $5.0 million prepayment by the Company to reduce the principal
outstanding on the Unsecured Notes applied on a pro-rata basis based
on the principal amount outstanding under each series.

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The required sweep of net cash proceeds from any unencumbered asset
monetizations to reduce the principal balance on the Unsecured Notes
will increase by 5% to 45% after the required SunTrust Warehouse sweep
of 7.5% of unencumbered asset monetizations has been completed.

The 8.96% interest rate and October 2012 maturity on the Series 2007-A
Notes remain unchanged. The principal balance on the Series 2005-A and
Series 2007-A Notes is $34.3 million and $17.2 million, respectively,
after giving effect to the $5.0 million payment.

"These amendments strengthen our balance sheet flexibility and liquidity
profile, as we now have no scheduled debt due until the latter part of
2011," said Steven F. Tunney, MCG Capital's CEO and President. "We are
pleased that we have the continued support of our private placement
lenders and that we were able to reach a timely and mutually
satisfactory amendment."

About MCG Capital Corporation

MCG Capital Corporation is a solutions-focused commercial finance
company providing capital and advisory services to middle-market
companies throughout the United States. Our investment objective is to
achieve current income and capital gains. Our capital is generally used
by our portfolio companies to finance acquisitions, recapitalizations,
buyouts, organic growth and working capital. For more information,
please visit www.mcgcapital.com.

Forward-looking Statements:

Statements in this press release regarding management's future
expectations, beliefs, intentions, goals, strategies, plans or
prospects, including statements relating to the effect of the amendments
to MCG's unsecured notes on its balance sheet flexibility and liquidity
profile may constitute forward-looking statements for purposes of the
safe harbor protection under applicable securities laws. Forward-looking
statements can be identified by terminology such as "anticipate,"
"believe," "could," "could increase the likelihood," "estimate,"
"expect," "intend," "is planned," "may," "should," "will," "will
enable," "would be expected," "look forward," "may provide," "would" or
similar terms, variations of such terms or the negative of those terms.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors including those risks, uncertainties and
factors referred to in MCG Capital's Quarterly Report on Form 10-Q for
the quarter ended June 30, 2009 filed with the Securities and Exchange
Commission under the section "Risk Factors," as well as other documents
that may be filed by MCG Capital from time to time with the Securities
and Exchange Commission. As a result of such risks, uncertainties and
factors, actual results may differ materially from any future results,
performance or achievements discussed in or implied by the
forward-looking statements contained herein. MCG Capital is providing
the information in this press release as of this date and assumes no
obligations to update the information included in this press release or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

SOURCE: MCG Capital Corporation

MCG Capital Corporation 
Marshall Murphy, 703-562-7110 
MMurphy@MCGCapital.com

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