Coastal Sunbelt Produce and East Coast Fresh Cuts Acquired By MCG Capital and Management Team.

SAVAGE, Md. -- Coastal Sunbelt Produce Company and East Coast Fresh Cuts, Inc. (ECFC) have been acquired by MCG Capital Corporation (Nasdaq:MCGC) and the companies' management team. Headquartered in Savage, MD, Coastal Sunbelt Produce and ECFC are leading distributors and processors of fresh produce and perishables in the Mid-Atlantic, serving the region's leading restaurant chains, independents, hotels, institutions and foodservice establishments.

"The sale of our controlling interest in Coastal Sunbelt Produce and ECFC represents the next logical step in the evolution of our companies and the final transition of our companies to their management teams," said Coastal Sunbelt and ECFC co-founder Paul Lebling. Co-founder Phil Muth added "Our employees have been the force behind our success and have helped us build companies that are industry leaders and outstanding corporate citizens in their communities. We feel confident that the companies' management team, backed by MCG Capital, will drive the companies forward and help take the companies to the next level. We are excited about this transaction and about our continued economic interest in the companies." As part of the transaction, Mr. Lebling and Mr. Muth will retain a significant ownership interest in both Coastal Sunbelt Produce and ECFC.

"Coastal Sunbelt Produce and ECFC are leaders in their industries that have grown significantly by investing in people, process and equipment and by focusing on exceeding the expectations of their customers," said Douglas Gilbert, the Managing Director at MCG Capital that led the transaction. "The Companies fit well with our investment strategy of backing strong management teams in market-leading companies."

Coastal Sunbelt Produce and ECFC are led by teams of senior managers who, in conjunction with this transaction, have become investors in the companies. The team includes Mike Davis - VP of Sales; Ross Foca - VP of Finance and CFO; Jason Lambros - VP of Purchasing; Tracy Moore - VP of Operations; and David Zeleznik - VP and GM of East Coast Fresh Cuts. With the acquisition, John Corso will become President and CEO of Coastal Sunbelt Produce, Inc. and ECFC and an investor in the companies. Mr. Corso brings a strong blend of operations, marketing, strategic and general management experience to Coastal Sunbelt Produce and ECFC. His background includes CEO and operating roles in manufacturing and distribution as well as experience in the hospitality industry. In addition to their continued ownership interest, company founders Paul Lebling and Phil Muth will remain with Coastal Sunbelt Produce and ECFC through a transition period to assist the companies in an advisory capacity.

"Over the last 15 years, Coastal Sunbelt Produce and ECFC have emerged as leaders in their markets," said Mr. Corso. "I am proud to be part of the companies and excited to be joining a very experienced and high performing team. I look forward to helping the companies build on their records of success." Mr. Corso joins Coastal Sunbelt Produce and ECFC after working alongside MCG Capital on the transaction.

"We feel there is very strong management in place," adds Mr. Gilbert of MCG Capital. "John Corso joins an experienced team of managers and associates at Coastal Sunbelt Produce and ECFC. We are excited about our investment and believe the companies will continue their strong pattern of growth." Co-founder Mr. Muth highlighted "John Corso is an experienced leader whom we have known for several years," and co-founder Mr. Lebling concluded "The company is in very capable hands."

About Coastal Sunbelt Produce Inc.: Established in May 1992 through the merger of Coastal Produce Co. of Baltimore (owned by Mr. Lebling) and Sunbelt Produce Co. of Washington DC (owned by Mr. Muth), the Company has become a major force in the produce industry and a leader in the Baltimore/Washington metropolitan market. Operating from a 165,000 square foot "state-of-the-art" facility in Savage MD, the company provides quality products, industry leading service, and timely delivery to customers throughout Maryland, Virginia, D.C., Delaware, New Jersey and Pennsylvania. More information about Coastal Sunbelt Produce is available at www.coastalsunbelt.com.

About East Coast Fresh Cuts, Inc.: East Coast Fresh Cuts is one of the leading regional processors of fresh-cut fruits and vegetables in the Mid-Atlantic. In 1999, the company became an accepted member of the USDA's "Quality Through Verification Program" and in 2004 moved into its current, technologically advanced, processing facility. The company serves leading broad-line distributors, supermarkets, restaurant chains, commissaries, and institutions by providing consistently high quality, portion controlled products that save time, labor & space. More information about ECFC is available at www.eastcoastfreshcuts.com.

About MCG Capital Corporation: MCG Capital Corporation (Nasdaq:MCGC) is a publicly traded Business Development Company with approximately $1.3 billion in total assets. MCG Capital is a solutions-focused commercial finance company providing financing and advisory services to middle market, growth oriented companies throughout the United States. MCG's capital is generally used by its portfolio companies to finance acquisitions, recapitalizations, management buyouts, organic growth and working capital. More information about MCG Capital Corporation is available at www.mcgcapital.com.