Year Ended

NEW YORK, NY - (Marketwire - November 16, 2011) - PennantPark Investment Corporation (NASDAQ: PNNT), “we,” “our,” “us” or “Company” today announces financial results for its fourth quarter and fiscal year ended September 30, 2011.

HIGHLIGHTS

Fiscal year ended September 30, 2011

($ in millions, except per share amounts)

The Company will host a conference call at 10:00 a.m. (Eastern Time) on Thursday, November 17, 2011 to discuss its fourth quarter and full year 2011 financial results. All interested parties are welcome to participate. You can access the conference call by dialing ###-###-#### approximately 5-10 minutes prior to the call. International callers should dial ###-###-####. All callers should reference PennantPark Investment Corporation. An archived replay of the call will be available through December 1, 2011 by calling ###-###-####. International callers please dial ###-###-####. For all phone replays, please reference conference ID #4660723.

As of September 30, 2011, our portfolio totaled $827.5 million and consisted of $296.5 million of senior secured loans, $165.3 million of second lien secured debt, $309.3 million of subordinated debt and $56.4 million of preferred and common equity investments. This compares to our portfolio as of September 30, 2010, which totaled $664.7 million and consisted of $234.6 million of senior secured loans, $156.7 million of second lien secured debt, $223.9 million of subordinated debt and $49.5 million of preferred and common equity investments.

As of September 30, 2011, our overall portfolio consisted of 48 companies with an average investment size of $17.2 million, a weighted average yield on debt investments of 13.3%, and was invested 36% in senior secured loans, 20% in second lien secured debt, 37% in subordinated debt, and 7% in preferred and common equity investments. This compares to our portfolio as of September 30, 2010, which consisted of 43 companies with an average investment size of $15.5 million, and a weighted average yield on debt investments of 12.7%, and was invested 35% in senior secured loans, 24% in second lien secured debt, 34% in subordinated debt and 7% in preferred and common equity investments.

For the three months ended September 30, 2011, we purchased $137.7 million in four new and four existing portfolio companies with a weighted average yield on debt investments of 12.9%. Sales and repayments of long-term investments for the same period totaled $47.6 million. This compares to the three months ended September 30, 2010, in which we invested $96.7 million in five new and two existing portfolio companies with a weighted average yield on debt investments of 17.1%. Sales and repayments of long term investments for the same period totaled $62.5 million.

For the fiscal year ended September 30, 2011, we purchased $479.7 million in 17 new and 11 existing portfolio companies with a weighted average yield on debt investments of 13.7%. Sales and repayments of long-term investments for the same period totaled $304.0 million. This compares to the fiscal year ended September 30, 2010, in which we invested $309.5 million in 17 new and 12 existing portfolio companies with a weighted average yield on debt investments of 14.9%. Sales and repayments of long term investments for the same period totaled $145.2 million.

Set forth below are the results of operations for the three months and fiscal years ended September 30, 2011 and 2010.

Investment income for the three months ended September 30, 2011 and 2010 was $26.1 million and $16.7 million, respectively, and was primarily attributable to $9.6 million and $5.5 million from senior secured loans, $5.2 million and $3.5 million from second lien secured debt investments, and $11.2 million and $6.9 million from subordinated debt investments, respectively.

Investment income for the fiscal years ended September 30, 2011 and 2010 was $91.7 million and $60.1 million, respectively, and was primarily attributable to $37.1 million and $19.5 million from senior secured loans, $15.2 million and $14.1 million from second lien secured debt investments, and $38.8 million and $26.5 million from subordinated debt investments, respectively. The increase in investment income over the prior year was due to growth of our portfolio which was also driven by investment of the proceeds from our equity offering and rotation out of lower yielding assets.

Expenses for the three months ended September 30, 2011 and 2010, totaled $11.0 million and $7.7 million, respectively. Of these totals, base management fees for the same respective periods totaled $4.0 million and $3.3 million, performance-based incentive fees totaled $3.8 million and $2.2 million, credit facility and Small Business Administration (“SBA”) debentures expenses totaled $1.8 million and $1.1 million, and general and administrative expenses totaled $1.4 million and $1.1 million, respectively, for the same periods.

Expenses for the fiscal years ended September 30, 2011 and 2010, totaled $39.1 million and $28.0 million, respectively. Of these totals, base management fees for the same respective periods totaled $14.9 million and $11.6 million, performance-based incentive fees totaled $13.2 million and $8.0 million, credit facility and SBA debentures expenses totaled $5.3 million and $3.7 million, and general and administrative expenses totaled $5.5 million and $4.6 million, respectively, for the same periods. Additionally, during the fiscal years ended September 30, 2011 and 2010, we recorded an excise tax of $0.2 million and $0.1 million, respectively. The increase in expenses over the prior year was primarily due to the growth of our portfolio and net investment income as well as increased borrowing costs.

Net investment income totaled $15.1 million and $9.0 million, or $0.33 and $0.27 per share, for the three months ended September 30, 2011 and 2010, respectively.

Net investment income totaled $52.6 million and $32.1 million, or $1.25 and $1.09 per share, for the fiscal years ended September 30, 2011 and 2010, respectively.

Sales and repayments of long-term investments for the three months ended September 30, 2011 and 2010 totaled $47.6 million and $62.5 million, and net realized gains totaled $7.6 million and $1.2 million, respectively, for the same periods.

Sales and repayments of long-term investments for the fiscal years ended September 30, 2011 and 2010 totaled $304.0 million and $145.2 million, and net realized gains (losses) totaled $16.3 million and $(15.4) million, respectively, for the same periods.

For the three months ended September 30, 2011 and 2010, our investments had a net change in unrealized (depreciation) appreciation of $(53.8) million and $3.2 million, respectively. Net change in unrealized appreciation (depreciation) on credit facility totaled $0.1 million and $(6.8) million, respectively, for the same periods.

For the fiscal years ended September 30, 2011 and 2010, our investments had a net change in unrealized (depreciation) appreciation of $(46.8) million and $35.5 million, respectively. Net change in unrealized appreciation on credit facility totaled $11.9 million and $35.7 million, respectively, for the same periods.

Net (decrease) increase in net assets resulting from operations totaled $(31.2) million and $6.6 million, or $(0.68) per share and $0.20 per share, for the three months ended September 30, 2011 and 2010, respectively.

Net increase in net assets resulting from operations totaled $10.3 million and $16.5 million, or $0.24 per share and $0.56 per share, for the fiscal years ended September 30, 2011 and 2010, respectively.

Our liquidity and capital resources are derived from our credit facility, SBA debentures and cash flows from operations, including investment sales and repayments, and income earned. Our primary use of funds from operations includes investments in portfolio companies and other operating expenses we incur. We used, and expect to continue to use, these capital resources as well as proceeds from rotation within our portfolio and from public and private offerings of securities to finance our investment objectives.

As of September 30, 2011, we had $240.9 million in outstanding borrowings on our credit facility, with a fair market value of $238.8 million and a weighted average interest rate at that time of 1.27%, exclusive of the fee on the undrawn commitment of 0.20%. Our senior secured revolving credit facility, which matures in June 2012, had $74.1 million of remaining unused borrowing capacity as of September 30, 2011.

As of September 30, 2011, we had $150.0 million in debt outstanding on our 10-year fixed SBA debentures with a weighted average interest rate of 3.70%, exclusive of the 3.43% in upfront fees. There is no remaining unused balance under the SBA debentures. We had $52 million of cash in the SBIC, net of unsettled investments as of September 30, 2011.

On June 1, 2011, we received exemptive relief from the SEC allowing us to modify the asset coverage ratio requirement to exclude the SBA debentures from our asset coverage calculation. Accordingly, our ratio of total assets on a consolidated basis to outstanding indebtedness may be less than 200%, which while providing increased investment flexibility, also increase our exposure to risks associated with leverage. Additionally, SBA regulation does not use mark-to-market accounting.

As of September 30, 2011, we had approximately $49 million of assets bearing a coupon of 9% or lower. We intend to seek to rotate these into new, higher yielding investments over time.

During the fiscal year ended September 30, 2011, we generated operating cash flows primarily from interest earned on debt investments and sales and repayments of investments. Our primary use of funds from operations during the same period consisted of investments in portfolio companies, payments of fees, and other operating expenses we incurred. Our operating activities used cash of $137.8 million for the fiscal year ended September 30, 2011, and our financing activities provided cash of $207.6 million for the same period, primarily from net repayments under our credit facility, SBA debentures issued, and our common stock offering.

During the fiscal year ended September 30, 2010, we generated operating cash flows primarily from interest earned on debt investments and sales and repayments of investments. Our primary use of funds from operations during the same period consisted of investments in portfolio companies, payments of fees, and other operating expenses we incurred. Our operating activities used cash of $127.1 million for the fiscal year ended September 30, 2010, and our financing activities provided cash of $95.6 million for the same period, primarily from proceeds of common stock offerings and draws on our credit facility and SBA debentures.

During the fiscal years ended September 30, 2011 and 2010, we declared distributions of $1.07 and $1.03 per share, respectively, for total distributions of $46.3 million and $32.3 million, respectively. For the three months ended September 30, 2011 and 2010, we declared distributions of $0.27 and $0.26 per share, respectively, for total distributions of $12.3 million and $9.4 million, respectively. Distributions are paid from taxable earnings and may include a return of capital and/or capital gains. The specific tax characteristics of the distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year and in its periodic report filed with the Securities and Exchange Commission.

The Company makes available on its website its report on Form 10-K filed with the Securities and Exchange Commission and stockholders may find the report on our website at www.pennantpark.com.