Oxford Lane Capital Corp. Continues to Invest Proceeds of Rights Offering

GREENWICH, CT--(Marketwire - May 17, 2012) - Oxford Lane Capital Corp. (the "Company") (NASDAQ: OXLC) announced today that, since the closing of the Company's non-transferable rights offering on May 3, 2012, it has invested approximately $27.8 million of the $33.1 million in net proceeds (prior to expenses) the Company received from its rights offering, representing approximately 84% of those proceeds. 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 March 28, 2012.

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 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 March 28, 2012. We undertake no obligation to update such statements to reflect subsequent events.