Clarification: IPO Market Conditions Cited by MVC Capital Were for the Period Leading Up To The Date Of Its Financial Statements; MVC Capital Remains Committed to Pursuing a Monetization Event in U.S. Gas & Electric to Maximize Shareholder Value

IPO market conditions cited in a story posted yesterday describing MVC Capital, Inc.'s view of the IPO markets related to conditions that existed during the three months ended July 31, 2012, and should not be viewed as MVC Capital, Inc. terminating its pursuit of an IPO for U.S. Gas & Electric, Inc.

An MVC Capital, Inc. news release on which Matters' original story was based had not described the cited conditions as relating to those conditions that existed during the three months ended July 31, 2012.

MVC Capital, Inc. remains committed to continuing to pursue an IPO for U.S. Gas & Electric, Inc.

U.S. Gas & Electric, Inc. is an MVC portfolio company. Earlier this year, U.S. Gas & Electric, Inc. announced that it had engaged a Tier I investment bank to lead the pursuit of strategic alternatives for USG&E to maximize shareholder value, including a public equity offering (potentially in Canada) or a sale, which could monetize all or a portion of MVC Capital, Inc.'s investment.