Patriot Capital Funding Closes a $11.25 Million One-Stop Financing, Including an

"We are delighted to close our first transaction with ReliantEquity Investors. Reliant Equity is active in our target market and welook forward to building a lasting relationship with them through theNupla acquisition," said Richard Buckanavage, President and CEO ofPatriot Capital Funding.

About Nupla Corporation

Based in Sun Valley, California, Nupla has been a leading USmanufacturer of specialized, industrial-grade striking, digging andcutting tools for over 50 years. Their products include over 1,500hand tool products, including shovels, rakes, hoes, axes, metal-headhammers and soft-faced hammers, as well as replacement handles for allof these tools branded under the Nupla name. To learn more, pleasevisit .

About Reliant Equity Investors

Reliant Equity Investors is a management centric private equityinvestment firm. Reliant is focused on buyouts of growth oriented,fundamentally sound middle-market businesses in basic industries witha minimum of $3 million in EBITDA. For more information, please visitwww.reliant equity.com.

About Patriot Capital Funding, Inc.

Patriot Capital Funding, Inc. () is aspecialty finance company providing customized financing solutionsprimarily to private equity sponsors focused on making investments insmall- to mid-sized companies. Patriot Capital Funding typicallyinvests in companies with annual revenues ranging from $10 million to$100 million that operate in diverse industry sectors. Investmentsusually take the form of senior secured loans, junior secured loans,subordinated debt investments in addition to equity or equity-relatedinstruments. Patriot Capital Funding also offers "one-stop" financing,which typically includes a revolving credit line, one or more seniorterm loans and a subordinated debt investment. Patriot Capital Fundingmakes equity co-investments of generally up to $2.0 million.

Forward-Looking Statements

This press release may contain certain forward-looking statements,including statements with regard to the future performance of PatriotCapital Funding. Words such as "believes," "expects," "projects," and"future" or similar expressions are intended to identifyforward-looking statements. These forward-looking statements aresubject to the inherent uncertainties in predicting future results andconditions. Certain factors could cause actual results to differmaterially from those projected in these forward-looking statements,and some of these factors are enumerated in Patriot Capital Funding'sannual report for the year ended December 31, 2006, and other filingswith the Securities and Exchange Commission. Patriot Capital Fundingundertakes no obligation to publicly update or revise anyforward-looking statements, whether as a result of new information,future events or otherwise.