MCG Capital (MCGC)

DISCLOSURES ABOUT QUALIFYING SPECIAL PURPOSE ENTITIES

In December 2008, FASB Staff Position FAS 140-4 and FIN 46(R)-8—Disclosures by Public Entities (Enterprises) about Transfers of Financial Assets and interests in Variable Interest Entities, or FSP 140-4, was issued. This standard does not change existing GAAP. Instead, it requires public companies to make additional disclosures regarding transfers to qualifying special purpose entities, or QSPEs. These disclosure requirements primarily focus on the transferor’s continuing involvement with transferred financial assets and related risks that it retains. FSP 140-4 is effective for the first reporting period that ends after December 15, 2008. Our adoption of this standard as of December 31, 2008, had no impact on our financial position or results of operations.

DISCLOSURES ABOUT QUALIFYING SPECIAL PURPOSE ENTITIES

In December 2008, FASB Staff Position FAS 140-4 and FIN 46(R)-8—Disclosures by Public Entities (Enterprises) about Transfers of Financial Assets and interests in Variable Interest Entities, or FSP 140-4, was issued. This standard does not change existing GAAP. Instead, it requires public companies to make additional disclosures regarding transfers to qualifying special purpose entities, or QSPEs. These disclosure requirements primarily focus on the transferor’s continuing involvement with transferred financial assets and related risks that it retains. FSP 140-4 is effective for the first reporting period that ends after December 15, 2008. Our adoption of this standard as of December 31, 2008, had no impact on our financial position or results of operations.

DISCLOSURES ABOUT QUALIFYING SPECIAL PURPOSE ENTITIES

In December 2008, FASB Staff Position FAS 140-4 and FIN 46(R)-8—Disclosures by Public Entities (Enterprises) about Transfers of Financial Assets and interests in Variable Interest Entities, or FSP 140-4, was issued. This standard does not change existing GAAP. Instead, it requires public companies to make additional disclosures regarding transfers to qualifying special purpose entities, or QSPEs. These disclosure requirements primarily focus on the transferor’s continuing involvement with transferred financial assets and related risks that it retains. FSP 140-4 is effective for the first reporting period that ends after December 15, 2008. Our adoption of this standard as of December 31, 2008, had no impact on our financial position or results of operations.

DISCLOSURES ABOUT QUALIFYING SPECIAL PURPOSE ENTITIES

In December 2008, FASB Staff Position FAS 140-4 and FIN 46(R)-8—Disclosures by Public Entities (Enterprises) about Transfers of Financial Assets and interests in Variable Interest Entities, or FSP 140-4, was issued. This standard does not change existing GAAP. Instead, it requires public companies to make additional disclosures regarding transfers to qualifying special purpose entities, or QSPEs. These disclosure requirements primarily focus on the transferor’s continuing involvement with transferred financial assets and related risks that it retains. FSP 140-4 is effective for the first reporting period that ends after December 15, 2008. The required disclosures are included in Note 6—Borrowings. Our adoption of this standard had no impact on our financial position or results of operations.

DISCLOSURES ABOUT QUALIFYING SPECIAL PURPOSE ENTITIES

In December 2008, FASB Staff Position FAS 140-4 and FIN 46(R)-8—Disclosures by Public Entities (Enterprises) about Transfers of Financial Assets and interests in Variable Interest Entities, or FSP 140-4, was issued. This standard does not change existing GAAP. Instead, it requires public companies to make additional disclosures regarding transfers to qualifying special purpose entities, or QSPEs. These disclosure requirements primarily focus on the transferor’s continuing involvement with transferred financial assets and related risks that it retains. FSP 140-4 is effective for the first reporting period that ends after December 15, 2008. The required disclosures are included in Note 6—Borrowings. Our adoption of this standard had no impact on our financial position or results of operations.

DISCLOSURES ABOUT QUALIFYING SPECIAL PURPOSE ENTITIES

In December 2008, FASB Staff Position FAS 140-4 and FIN 46(R)-8—Disclosures by Public Entities (Enterprises) about Transfers of Financial Assets and interests in Variable Interest Entities, or FSP 140-4, was issued. This standard does not change existing GAAP. Instead, it requires public companies to make additional disclosures regarding transfers to qualifying special purpose entities, or QSPEs. These disclosure requirements primarily focus on the transferor’s continuing involvement with transferred financial assets and related risks that it retains. FSP 140-4 is effective for the first reporting period that ends after December 15, 2008. The required disclosures are included in Note 6—Borrowings. Our adoption of this standard had no impact on our financial position or results of operations.