MVC Capital Invests $15 Million In BM Auto Ltd.

PURCHASE, N.Y.--Feb. 1, 2006--MVC Capital, Inc. , today announced that the Fund has provided approximately $8 million in equity and $7 million in a 60-day bridge financing to BM Auto Ltd. ("BM Auto"), an automotive distributor incorporated in Latvia. BM Auto will use the proceeds it receives from the Fund to acquire the assets of SIA Mikas, a retail distributor of BMW, and Mini Cooper vehicles in Riga, Latvia and to acquire all of the shares of SIA Ermans, a real estate holding company which owns the property used by SIA Mikas to operate its BMW distribution business.

As a result of the strong performance of Baltic Motors, an existing portfolio company of the Fund, BM Auto was awarded one of two dealer contracts by BMW for distribution in Latvia. As part of the distribution agreement with BMW, BM Auto has also obtained the rights to sell Mini Coopers and BMW Motorcycles.

The senior management team of Baltic Motors will operate BM Auto and has already successfully recruited a majority of the key members of BM Auto's staff. MVC views the Fund's investment in BM Auto as the next step of its long-term strategy that seeks to capitalize on the growing Latvian automotive market by adding dealership locations and making additional brand acquisitions.

"We are excited about entering the luxury automobile segment in the rapidly growing Latvian market as we have experienced 86% growth in cars sold in our existing business last year," said Michael Tokarz, Chairman and Portfolio Manager of MVC Capital. "It is an honor to represent BMW, one of the leading luxury automotive brands in the world. We believe that by combining the execution capabilities of BM Auto and Baltic Motors' management with the recognized BMW brand, BM Auto is well positioned to capitalize on the Latvian automotive market."

Anatoly Frenkel, President of BM Auto commented, "With MVC's financial resources and the team's operational know-how, we believe that BM Auto is in a strong position to capitalize on this new opportunity."

About MVC Capital, Inc.

MVC Capital is a Business Development Company traded on the New York Stock Exchange that provides long-term debt and equity investment capital to fund growth, acquisitions and recapitalizations of companies in a variety of industries. For additional information about MVC Capital, please contact investor relations at 914.510.9400. All media inquiries should be directed to Kim Levy or Jamie Tully at 212-687-8080.

Forward-Looking Statements