Capital Southwest Corporation (Nasdaq:CSWC) today reported net assets at June 30, 2006 of $394,674,815, equivalent to $101.83 per share after deducting an allowance of $40.91 per share for deferred taxes on net unrealized appreciation of investments. Comparative annual data is summarized below:

                                        June 30, 2006    June 30, 2005
                                      ---------------  ---------------

Net assets                              $394,674,815     $308,437,746

Shares outstanding                         3,875,751        3,857,051

Net assets per share                         $101.83           $79.97

Assuming reinvestment of all dividends and tax credits on retained long-term capital gains, the June 30, 2006 net asset value was 29.9% above the June 30, 2005 net asset value of $79.97 per share and 0.7% below the March 31 2006 net asset value of $102.74 per share.

Capital Southwest Corporation is a venture capital investment company headquartered in Dallas, Texas.