Oxford Lane Capital Corp. Announces Inaugural Dividend Distribution

GREENWICH, CT--(Marketwire - March 8, 2011) - Oxford Lane Capital Corp. (NASDAQ: OXLC) announced today that its Board of Directors has declared an inaugural dividend of $0.25 per share for the quarter ended March 31, 2011 payable April 1, 2011 to holders of record on March 21, 2011. As the Company went public on January 25, 2011, this initial dividend reflects only a partial quarter of activity. The Company expects that the continued deployment of its capital in investments similar to those made thus far will result in increased distributable income and dividends to its shareholders.

The Company also announced that since the closing of its initial public offering on January 25, 2011, it has invested approximately $20.9 million of the $34.1 million in net proceeds the Company received from its initial public offering (including the proceeds received from the underwriters' partial exercise of the over-allotment option), representing approximately 61% of those proceeds, including transactions entered into by the Company that are pending settlement. These investments were made in junior debt and equity tranches of collateralized loan obligations, consistent with the Company's investment objective described in the prospectus, dated January 19, 2011, relating to the Company's initial public offering.

About Oxford Lane Capital Corp.

Oxford Lane Capital Corp. is a publicly-traded registered closed-end management investment company. It seeks to achieve its investment objective of maximizing its portfolio's total return by investing primarily in senior secured loans made to companies whose debt is unrated or is rated below investment grade, with an emphasis on current income. Those investments may take a variety of forms, including the direct purchases of such loans (either in the primary or secondary markets) or through investments in entities that in turn own a pool of such loans.

Forward-Looking Statements

This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions, including statements with regard to the anticipated use of the net proceeds of the Company's securities offering. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) should also be considered to be forward-looking statements. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors are identified from time to time in our filings with the Securities and Exchange Commission, including the prospectus dated January 19, 2011. We undertake no obligation to update such statements to reflect subsequent events.

Contact Information:

Contact:

Bruce Rubin
203-983-5280