Exhibit 99.1

Gladstone Investment Corporation Reports Financial Results for the Third Quarter Ended December 31, 2007

Net Investment Income for the quarter ended December 31, 2007 was $3.7 million, or $0.23 per common share
Net Investment Income for the nine months ended December 31, 2007 was $9.6 million, or $0.58 per common share

MCLEAN, Va.--(BUSINESS WIRE)--Gladstone Investment Corp. (NASDAQ:GAIN) (the “Company”) today announced earnings for the third quarter ended December 31, 2007. All per share references are per basic and diluted weighted average common share outstanding, unless otherwise noted.

Net Investment Income for the quarter ended December 31, 2007 was $3,746,226, or $0.23 per share, as compared to $2,898,068, or $0.18 per share, for the quarter ended December 31, 2006. Net Investment Income for the nine months ended December 31, 2007 was $9,629,308, or $0.58 per share, as compared to $8,363,118, or $0.51 per share, for the nine months ended December 31, 2006.

Net Increase in Net Assets Resulting from Operations for the quarter ended December 31, 2007 was $5,108,919, or $0.31 per share, as compared to Net Increase in Net Assets Resulting from Operations of $2,684,543, or $0.16 per share, for the quarter ended December 31, 2006. Net Increase in Net Assets Resulting from Operations for the nine months ended December 31, 2007 was $9,012,310, or $0.54 per share, as compared to $6,809,635, or $0.41 per share, for the nine months ended December 31, 2006.

Total assets were $372,028,506 at December 31, 2007, as compared to $323,590,215 at March 31, 2007. Net asset value was $13.31 per actual common share outstanding at December 31, 2007, as compared to $13.46 per actual common share outstanding at March 31, 2007.

The annualized weighted average yield on the Company’s portfolio of investments, excluding cash and cash equivalents, was 9.05% for the three months ended December 31, 2007 compared to 9.41% for the three months ended December 31, 2006. The annualized weighted average yield on the Company’s portfolio for the nine months ended December 31, 2007 was 9.05% compared to 10.03% for the nine months ended December 31, 2006.

During the third quarter ended December 31, 2007, the Company recorded the following activity:

Invested approximately $20.5 million in senior and subordinated debt, a revolving credit facility and preferred and common equity of Cavert II Holding Corp.;
Invested approximately $16.9 million in senior debt, a revolving credit facility and preferred and common equity of Danco Acquisition Corp.;
Received $9.8 million from the full repayment of two syndicated loan participations; and
Received $9.9 million from the partial sale of two syndicated loan participations.

At December 31, 2007, the Company held 51 Non-Control/Non-Affiliate investments, 6 Control investments and 2 Affiliate investments, totaling an aggregate cost basis of approximately $356 million and a fair value of approximately $352 million.

Condensed Schedule of Investments
December 31, 2007

Investment Type	Cost		Fair Value
Total Non-Control/Non-Affiliate Investments	$	185,137,185	$	174,066,264
Total Control Investments		136,536,484		143,192,123
Total Affiliate Investments		34,454,244		34,772,730
Total Investments	$	356,127,913	$	352,031,117

“Since the inception of our fund in September 2005, we have invested over $500 million, resulting in the full investment of our IPO proceeds as well as borrowings under our $200 million credit facility. We continue to add proprietary investments to our portfolio using leverage, thereby increasing returns to stockholders. We continue to see good opportunities for our company and expect to close more investments as the year progresses,” said Chip Stelljes, President and Chief Investment Officer.

Subsequent to December 31, 2007, the Company declared monthly cash dividends of $0.08 per common share for each of the months of January, February and March 2008.

The Company will hold a conference call on Friday, February 1, 2008 at 8:30 am ET to discuss fiscal third quarter earnings. Please call (877) 407-8031 to enter the conference. An operator will monitor the call and set a queue for the questions.

A replay of the conference call will be available through March 4, 2008. To hear the replay, please dial (877) 660-6853, access playback account 286 and use ID code 270241. The replay will be available approximately two hours after the call concludes.

The live audio broadcast of Gladstone Investment's quarterly conference call will be available online at www.GladstoneInvestment.com and www.investorcalendar.com. The online replay will follow shortly after the call and will be available for replay on the Company’s website.

Gladstone Investment Corporation is a publicly traded business development company that seeks to make debt and equity investments in small and mid-sized businesses in the United States in connection with acquisitions, changes in control and recapitalizations. Additional information can be found at http://www.GladstoneInvestment.com.

For further information, contact Kerry Finnegan at 703-287-5893.

This press release may include statements that may constitute “forward-looking statements,” including statements with regard to the future performance of the Company. Words such as “should,” “believes,” “feel,” “expects,” “projects,” “strive,” “goals,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements inherently involve certain risks and uncertainties, although they are based on the Company’s current plans that are believed to be reasonable as of the date of this press release. Factors that may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements include, among others, those factors listed under the caption "Risk factors" of the Company’s prospectus filed with the Securities and Exchange Commission on December 19, 2007. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

	Three months ended			Three months ended
	December 31, 2007			December 31, 2006

INVESTMENT INCOME
Interest income
Non-Control/Non-Affiliate investments	$	3,891,918		$	2,586,171
Control investments		2,865,843			1,264,451
Affiliate investments		700,494			114,668
Cash and cash equivalents		79,502			332,586
Total interest income		7,537,757			4,297,876
Other income		6,244			1,492
Total investment income		7,544,001			4,299,368

EXPENSES
Base management fee		497,632			551,235
Loan servicing fee		1,287,013			508,691
Administration fee		211,159			124,101
Interest expense		2,381,227			68,748
Amortization of deferred finance costs		169,329			91,392
Professional fees		90,255			186,537
Stockholder related costs		25,083			28,643
Insurance expense		46,719			60,696
Directors fees		54,709			54,800
Taxes and licenses		41,886			41,550
General and administrative expenses		38,644			60,132
Expenses before credit from Adviser		4,843,656			1,776,525
Credits to base management fee		(1,045,881	)		(375,225	)
Total expenses net of credit to base management fee		3,797,775			1,401,300
NET INVESTMENT INCOME		3,746,226			2,898,068

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized loss on sale of Non-Control/Non-Affiliate investments		(146,034	)		(2,283	)
Net unrealized depreciation of Non-Control/Non-Affiliate investments		(2,835,448	)		(52,814	)
Net unrealized appreciation (depreciation) of Control investments		4,487,562			(158,428	)
Net unrealized depreciation of Affiliate investments		(148,387	)		-
Net unrealized appreciation derivative		5,000			-
Net loss on investments		1,362,693			(213,525	)


NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	5,108,919		$	2,684,543

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER COMMON SHARE:
Basic and Diluted	$	0.31		$	0.16

SHARES OF COMMON STOCK OUTSTANDING:
Basic and diluted weighted average shares		16,560,100			16,560,100

GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

	Nine months ended			Nine months ended
	December 31, 2007			December 31, 2006

INVESTMENT INCOME
Interest income
Non-Control/Non-Affiliate investments	$	11,220,467		$	6,938,026
Control investments		8,043,247			3,711,056
Affiliate investments		1,501,944			114,668
Cash and cash equivalents		193,613			1,610,506
Total interest income		20,959,271			12,374,256
Other income		40,828			2,478
Total investment income		21,000,099			12,376,734

EXPENSES
Base management fee		1,309,951			2,214,437
Loan servicing fee		3,741,082			508,691
Administration fee		646,740			364,351
Interest expense		5,818,564			68,748
Amortization of deferred finance costs		595,532			91,392
Professional fees		356,176			354,325
Stockholder related costs		220,312			187,509
Insurance expense		182,789			200,933
Directors fees		176,981			154,300
Taxes and licenses		125,018			139,994
General and administrative expenses		130,121			104,161
Expenses before credit from Adviser		13,303,266			4,388,841
Credits to base management fee		(1,932,475	)		(375,225	)
Total expenses net of credit to base management fee		11,370,791			4,013,616
NET INVESTMENT INCOME		9,629,308			8,363,118

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized loss on sale of Non-Control/Non-Affiliate investments		(197,712	)		(944	)
Net unrealized depreciation of Non-Control/Non-Affiliate investments		(10,671,793	)		(1,189,598	)
Net unrealized appreciation (depreciation) of Control investments		9,941,521			(362,941	)
Net unrealized appreciation of Affiliate investments		305,986			-
Net unrealized appreciation derivative		5,000			-
Net loss on investments		(616,998	)		(1,553,483	)


NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	9,012,310		$	6,809,635

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER COMMON SHARE:
Basic and Diluted	$	0.54		$	0.41

SHARES OF COMMON STOCK OUTSTANDING:
Basic and diluted weighted average shares		16,560,100			16,560,100

GLADSTONE INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(UNAUDITED)

	December 31,			March 31,
	2007			2007

ASSETS
Non-Control/Non-Affiliate investments (Cost 12/31/07: $185,137,185; 3/31/07: $138,567,741)	$	174,066,264		$	138,168,612
Control investments (Cost 12/31/07: $136,536,484; 3/31/07: $116,302,372)		143,192,123			113,016,491
Affiliate investments (Cost 12/31/07: $34,454,244; 3/31/07: $19,750,000)		34,772,730			19,762,500
Total investments at fair value (Cost 12/31/07: $356,127,913; 3/31/07: $274,620,113)		352,031,117			270,947,603
Cash and cash equivalents		13,288,669			37,788,941
Interest receivable		1,965,776			1,306,090
Prepaid insurance		123,943			83,819
Deferred finance costs		462,210			627,960
Due from Custodian		3,412,644			12,694,985
Due from Adviser		253,684			20,383
Other assets		490,463			120,434
TOTAL ASSETS	$	372,028,506		$	323,590,215


LIABILITIES
Due to Administrator	$	211,159		$	162,244
Due to Adviser		-			-
Borrowings under line of credit		150,462,500			100,000,000
Accrued expenses		910,800			523,698
Other liabilities		71,205			85,764
Total Liabilities		151,655,664			100,771,706
NET ASSETS	$	220,372,842		$	222,818,509

ANALYSIS OF NET ASSETS:
Common stock, $0.001 par value, 100,000,000 shares authorized and 16,560,100 shares issued and outstanding	$	16,560		$	16,560
Capital in excess of par value		230,065,064			230,096,572
Net unrealized depreciation of investment portfolio		(4,096,797	)		(3,672,510	)
Net unrealized appreciation of derivative		5,000			-
Distributions in excess of net investment income		(5,616,985	)		(3,622,113	)
Total Net Assets	$	220,372,842		$	222,818,509
Net assets per share	$	13.31		$	13.46


GLADSTONE INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS
(UNAUDITED)

	Three months ended			Three months ended
	December 31, 2007			December 31, 2006
Per Share Data ⁽¹⁾
Balance at beginning of period	$	13.24		$	13.71

Income from investment operations:
Net investment income ⁽²⁾		0.23			0.18
Realized loss on sale of investments ⁽²⁾		(0.01	)		-
Net unrealized appreciation (depreciation) of investments ⁽²⁾		0.09			(0.02	)
Net unrealized appreciation of derivative ⁽²⁾		-			-
Total from investment operations		0.31			0.16
Distributions		(0.24	)		(0.21	)
Net asset value at end of period	$	13.31		$	13.65

Per share market value at beginning of period	$	12.84		$	14.46
Per share market value at end of period		9.81			15.31
Total Return ⁽³⁾		-21.93	%		7.38	%
Shares outstanding at end of period		16,560,100			16,560,100

Ratios/Supplemental Data
Net assets at end of period	$	220,372,842		$	226,085,756
Average net assets ⁽⁴⁾	$	218,176,005		$	225,338,878
Ratio of expenses to average net assets ^{(5) (6)}		8.88	%		3.15	%
Ratio of net expenses to average net assets ^{(5) (7)}		6.96	%		2.49	%
Ratio of net investment income to average net assets ⁽⁵⁾		6.87	%		5.14	%

(1)		Based on actual shares outstanding at the end of the corresponding period.
(2)		Based on weighted average basic per share data.
(3)		Total return equals the change in the market value of the Company's common stock from the beginning of the period taking into account dividends reinvested in accordance with the terms of our dividend reinvestment plan. Total return does not take into account dividends that may be characterized as a return of capital.
(4)		Calculated using the average of the ending monthly net assets for the respective periods.
(5)		Amounts are annualized.
(6)		Ratio of expenses to average net assets is computed using expenses before credit from the Adviser.
(7)		Ratio of net expenses to average net assets is computed using total expenses net of credits to the management fee.


GLADSTONE INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS
(UNAUDITED)

	Nine months ended			Nine months ended
	December 31, 2007			December 31, 2006
Per Share Data ⁽¹⁾
Balance at beginning of period	$	13.46		$	13.88

Income from investment operations:
Net investment income ⁽²⁾		0.58			0.51
Realized loss on sale of investments ⁽²⁾		(0.01	)		-
Net unrealized depreciation of investments ⁽²⁾		(0.03	)		(0.11	)
Net unrealized appreciation of derivative ⁽²⁾		-			-
Total from investment operations		0.54			0.40
Distributions		(0.69	)		(0.63	)
Net asset value at end of period	$	13.31		$	13.65

Per share market value at beginning of period	$	14.87		$	14.90
Per share market value at end of period		9.81			15.31
Total Return ⁽³⁾		-30.31	%		7.28	%
Shares outstanding at end of period		16,560,100			16,560,100

Ratios/Supplemental Data
Net assets at end of period	$	220,372,842		$	226,085,756
Average net assets ⁽⁴⁾	$	221,452,960		$	226,399,367
Ratio of expenses to average net assets ^{(5) (6)}		8.01	%		2.59	%
Ratio of net expenses to average net assets ^{(5) (7)}		6.85	%		2.36	%
Ratio of net investment income to average net assets ⁽⁵⁾		5.80	%		4.93	%

(1)		Based on actual shares outstanding at the end of the corresponding period.
(2)		Based on weighted average basic per share data.
(3)		Total return equals the change in the market value of the Company's common stock from the beginning of the period taking into account dividends reinvested in accordance with the terms of our dividend reinvestment plan. Total return does not take into account dividends that may be characterized as a return of capital.
(4)		Calculated using the average of the ending monthly net assets for the respective periods.
(5)		Amounts are annualized.
(6)		Ratio of expenses to average net assets is computed using expenses before credit from the Adviser.
(7)		Ratio of net expenses to average net assets is computed using total expenses net of credits to the management fee.

CONTACT:
Gladstone Investment Corporation
Kerry Finnegan, 703-287-5893