MVC Capital Closes Acquisition of Nine Ford Dealerships across Europe

PURCHASE, N.Y.--MVC Capital , a publicly traded business development company that makes private debt and equity investments, today announced that the Fund has provided $19 million of bridge financing and $21 million of equity financing to MVC Automotive Group B.V. (“MVC Automotive”), an Amsterdam-based holding company established by the Fund that owns and operates nine Ford dealerships located in Austria, Belgium, and the Netherlands.

On August 3, 2007, MVC announced the signing of a non-binding letter of intent to acquire multiple Ford dealerships throughout Europe in order to leverage the Fund’s success in managing and operating automotive dealerships. The Fund has now closed this investment with the creation of MVC Automotive.

As part of the transaction, the Fund has recruited Anatoly Frenkel, the CEO, and Ansis Auzins, the COO, from its former portfolio companies, Baltic Motors Corporation (“Baltic”) and SIA BM Auto (“BM Auto”), to operate MVC Automotive given their deep industry experience and success in managing Baltic and BM Auto.

“We are delighted to have the opportunity to enter into these large scale markets in Europe with Ford as our partner,” said Michael Tokarz, Chairman and Portfolio Manager of the Fund. “We believe that by leveraging the Fund’s financial resources and track record in the industry, with this hand-picked management team’s operational know-how, we are well poised to fuel the growth of these businesses.”

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, please visit the Company’s website at www.mvccapital.com. For MVC's investor relations, please call 914-510-9400. All media inquiries should be directed to Kim Levy or Nathaniel Garnick at 212-687-8080.

The information contained in this press release contains forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, and these factors are enumerated in the company's periodic filings with the Securities and Exchange Commission.