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Oxford Lane Capital Corp. Announces Second Fiscal Quarter Dividend of $0.50 per Share

Oxford Lane Capital Corp. (the "Company") (NASDAQ: OXLC) announced today that the Company's Board of Directors has declared a dividend of $0.50 per share with respect to the Company's fiscal quarter ending September 30, 2011. Based on current operating projections, the Company does not currently expect that any significant portion of the second fiscal quarter dividend should represent a return of capital for U.S. tax law purposes.

The dividend will be payable to shareholders of record as of September 16, 2011 and will be payable on September 30, 2011.

The Company also announced that its net asset value per share as of June 30, 2011 was $17.45.

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 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. We undertake no obligation to update such statements to reflect subsequent events.