Hercules Technology Growth Capital Announces Third Quarter 2012 Financial Results and Declares a Quarterly Cash Dividend of

  Hercules Technology Growth Capital Announces Third Quarter 2012 Financial
  Results and Declares a Quarterly Cash Dividend of $0.24

  *Record high total investment income of $23.9 million up 27.8% from Q3 2011
  *Record high total investment assets of $774.5 million up 34.3% from Q3
    2011
  *32.6% increase in Q3 2012 Net Investment Income “NII” of
    approximately$11.4 million, or$0.23per share
  *31.6% increase in Q3 2012 Distributable Net Operating Income or “DNOI” of
    $12.5 million, or $0.26per share
  *Q3 total new commitments ofapproximately$136.4 million
  *Year-to-date new commitments of approximately $377.0 million
  *Completed $85.9 million 7.00% Senior Unsecured Notes offering
  *Raised gross proceeds of approximately $33.6 million from equity offering
    in October 2012
  *Strong liquidity position with approximately $261.8 million available at
    quarter end

Business Wire

PALO ALTO, Calif. -- November 01, 2012

Hercules Technology Growth Capital, Inc. (NYSE: HTGC) (“Hercules”), the
leading specialty finance company focused on providing senior secured loans to
venture capital-backed companies in technology-related markets, including
technology, biotechnology, life science, and cleantech industries, at all
stages of development, announced today its financial results for the third
quarter ended September 30, 2012.

Third Quarter 2012 Highlights:

  *Record high total investment income of $23.9 million, an increase of
    27.8%, in the third quarter of 2012, compared to$18.7 millionfor the
    third quarter of 2011.
  *Increased NII during the quarter by 32.6% to approximately $11.4 million,
    as compared to $8.6 million in the third quarter of 2011. NII per share
    was $0.23, up 15.0%, on 48.8 million outstanding shares for the third
    quarter of 2012, compared to $0.20 per share on 43.1 million outstanding
    shares in the third quarter of 2011.
  *Increased DNOI by approximately 31.6% to $12.5 million compared to
    $9.5million in the third quarter of 2011. DNOI per share was $0.26, up
    18.2%, on 48.8 million outstanding shares for the third quarter of 2012,
    compared to $0.22 per share on 43.1 million outstanding shares in the
    third quarter of 2011.
  *Record high total investment assets increased 34.3% year over year to
    approximately $774.5 million as of September 30, 2012, compared to $ 576.5
    million as of September 30, 2011.
  *Originated approximately $136.4 million in total debt and equity
    commitments to new and existing portfolio companies.
  *Funded approximately $91.4 million of debt and equity investments during
    the third quarter.
  *Received approximately $38.4 million in principal repayments,
    including$7.8 millionof early principal repayments and$30.6 millionin
    scheduled principal payments.
  *Ended the third quarter with approximately $261.8 million in available
    liquidity, including $107.1 million in cash, $24.7 million in available
    SBA borrowing capacity and $130.0 million in bank credit facility
    availability.
  *Declared a quarterly dividend of$0.24 per share payable on November 21,
    2012, to shareholders of record as of November 14, 2012; the twenty-ninth
    consecutive dividend since inception bringing total dividends declared
    since inception to $7.64 per share.

“Our third quarter results reflect significant growth of our investment
portfolio as we reported record investment income and record investment assets
for the third consecutive quarter," said Manuel A. Henriquez, Hercules
co-founder, chairman and chief executive officer. “We continued to see strong
demand for venture debt during the quarter, despite continued global economic
uncertainty and the upcoming U.S. elections. As a result, we delivered better
than expected originations for the quarter and have hired a number of senior
professionals, five of which are in the technology group, focused on
accelerating our growth and capitalizing on the many opportunities we see in
the market. At the same time, we have bolstered and strengthened our balance
sheet, adding well over $100 million in additional diversified sources of
liquidity in September and October, to support portfolio growth for the fourth
quarter of 2012 and beyond."

Third Quarter Review and Operating Results

Investment Portfolio

As of September 30, 2012, over 99.3% of the Company’s debt investments were in
a senior secured first lien position, and 99.3% of the debt investment
portfolio was priced at floating interest rates or floating interest rates
with a Prime or LIBOR based interest rate floor, well positioned to benefit
should market rates move in either direction.

Hercules entered into commitments to provide debt and equity financings of
approximately$136.4 million to new and existing portfolio companies.

The Company funded approximately $90.8millionand $0.6 million in debt and
equity investments, respectively, to new and existing portfolio companies
during the third quarter.

Hercules received approximately$38.4 millionof principal repayments,
including approximately $7.8 millionof early principal repayments
andapproximately $30.6millionin scheduled principal payments in the third
quarter.

Net investment growth on Hercules’ portfolio was approximately $49.1million
on a cost basis.

Hercules recorded approximately $2.6 million of net unrealized appreciation
from its loans, warrant and equity investments.

A break-down of the Company’s total investment portfolio valued at cost and
fair value by category, quarter over quarter, is highlighted below:

(in millions)                 Loans       Equity      Warrants    Total
Balances at Cost at            $  661.2     $  51.1      $  31.4      $  743.7
6/30/2012
Net activity during Q3           50.0        (3.7)       2.8         49.1
2012*
Balances at Cost at            $  711.2     $  47.4      $  34.2      $  792.8
9/30/2012
Q/Q Change                        7.6%         -7.2%        8.9%         6.6%
                                                                   
Balances at Value at           $  647.1     $  47.6      $  28.1      $  722.8
6/30/12
Net activity during Q3            50.0         (3.7)        2.8          49.1
2012*
Net unrealized depreciation      (3.3)       3.9         2.0         2.6
Balances at Value at           $  693.8     $  47.8      $  32.9      $  774.5
9/30/12
Q/Q Change                        7.2%         0.4%         17.1%        7.2%
                                                                      
*Net activity includes fee and OID collections and amortization during the
quarter


Unfunded Commitments

As of September 30, 2012, Hercules had unfunded debt commitments of
approximately $66.0 million. Since these commitments may expire without being
drawn upon, unfunded commitments do not necessarily represent future cash
requirements or future earning assets for Hercules. Approximately $39.5
million of these unfunded commitments are dependent upon the portfolio company
reaching certain milestones before the Hercules debt commitment would become
available.

Signed Term Sheets

Hercules finished the third quarter of 2012 with approximately $133.5 million
in signed non-binding term sheets with 13 new and existing companies. These
non-binding term sheets generally convert to contractual commitments in
approximately 45 to 60 days from signing. Non-binding outstanding term sheets
are subject to completion of Hercules’ due diligence and final approval
process as well as negotiation of definitive documentation with the
prospective portfolio companies. It is important to note that not all
non-binding term sheets are expected to close and do not necessarily represent
future cash requirements. Closed commitments generally fund 70-80% of the
committed amount in aggregate over the life of the commitment.

Portfolio Effective Yield

The effective yield on the Company’s debt portfolio investments during the
quarter was 14.4%. Excluding the effect of fee accelerations that occurred
from early payoffs and one-time events, the adjusted effective yield for the
third quarter of 2012 was 13.9%, up approximately 60 basis points from the
adjusted effective yield in the second quarter of 2012 of 13.3%. The effective
yield is derived by dividing total investment income by the weighted average
earning investment portfolio assets outstanding during the quarter which
exclude non-interest earning assets such as warrants and equity investments.

Existing Warrants Portfolio and Potential Future Gains

Hercules held warrant positions in approximately 117 portfolio companies, with
a fair value of approximately $32.9 million at September 30, 2012, up 20.5%
from approximately $27.3 million at September 30, 2011. The increase was
primarily driven by the addition of 27 new warrant positions and offset in
part by the liquidation of eight warrant investments and the sale of six
warrant investments for realized gains.

During the quarter, one of Hercules' portfolio companies completed its IPO:

  *Trulia, Inc.("TRLA")

As ofSeptember 30, 2012, four portfolio companies had filed Form S-1
Registration Statements with the SEC in contemplation of a potential IPO:

  *Glori Energy, Inc.
  *iWatt, Inc.
  *Paratek Pharmaceuticals, Inc
  *One company filed a Form S-1 Registration confidentially under the JOBS
    Act.

There can be no assurances that these companies will complete their IPOs in a
timely manner or at all.

Income Statement

Total investment income in the third quarter of 2012 was approximately $23.9
million compared to approximately $18.7 million in the third quarter of 2011.

Interest expense and loan fees were approximately $6.1 million during the
third quarter of 2012 as compared to $4.3 million in the third quarter of
2011.

The Company had a weighted average cost of debt comprised of interest and fees
of approximately 6.7% in the third quarter of 2012 versus 6.5% during the
third quarter of 2011.

Total operating expenses, excluding interest expense and loan fees, for the
third quarter of 2012 was $6.5 million as compared to $5.8 million for the
third quarter of 2011.

During the third quarter of 2012, the Company recorded approximately $2.6
million of net unrealized appreciation from its loans, warrant and equity
investments. Of the $2.6 million of unrealized appreciation, $3.2 million of
appreciation was due to market or yield adjustments in fair value
determinations, $12.0 million of depreciation was primarily attributable to
collateral based impairments on investments in two portfolio companies, and
$11.4 million of appreciation was related to the reversal of net unrealized
depreciation to realized losses on loans, warrants and equity.

A break-down of the net unrealized appreciation in the investment portfolio is
highlighted below:

(in millions)                                                   
Q3-12 Unrealized                Loans          Equity     Warrants   Total
Appreciation/(Depreciation)
                                                                     
Collateral based impairments    $  (8.7  )     $ (2.1 )   $ (1.2 )   $ (12.0 )
                                                                     
Reversals due to Loan
Payoffs & Warrant/Equity           6.9           4.1        0.4        11.4
sales
                                                                     
Fair Value Market/Yield
Adjustments*
Level 1 & 2 Assets                 -             (1.5 )     0.6        (0.9  )
Level 3 Assets                    (1.5  )      3.4      2.2      4.1   
Total Fair Value                   (1.5  )       1.9        2.8        3.2
Market/Yield Adjustments
                                                                  
Total Unrealized                $  (3.3  )     $ 3.9     $ 2.0     $ 2.6   
Appreciation/(Depreciation)
                                                                     
*Level 1 assets are generally equities listed in active markets and level 2
assets are generally warrants held in a public company. Observable market
prices are typically the primary input in valuing level 1 and 2 assets. Level
3 asset valuations require inputs that are both significant and unobservable.
Generally, level 3 assets are debt investments, warrants, and equities held in
a private company.


Hercules recognized net realized losses of approximately $9.1 million on its
investment portfolio in the third quarter.

Cumulative net realized losses on investments since October 2004 to date total
approximately $48.1 million, on a GAAP basis. When compared to total
commitments of approximately $3.1 billion over the same period, the net
realized loss since inception represents approximately 1.6% of total
commitments or an annualized loss rate of approximately 19 basis points.

NII – Net Investment Income

NII for the third quarter of 2012 was approximately $11.4 million, compared to
$8.6million in the third quarter of 2011, representing an increase of
approximately 32.6%. NII per share for the third quarter of 2012 was $0.23, up
15.0%, based on 48.8 million basic weighted shares outstanding, compared to
$0.20 based on 43.1 million basic weighted shares outstanding in the third
quarter 2011.

DNOI - Distributable Net Operating Income

DNOI for the third quarter was approximately $12.5 million or $0.26 per share,
as compared to $9.5 million or $0.22 per share in the third quarter of 2011.
DNOI measures Hercules’ operating performance exclusive of employee stock
compensation, which represents expense to the Company but does not require
settlement in cash. DNOI does include paid-in-kind, or “PIK”, and back-end
fees that generally are not payable in cash on a regular basis but rather at
investment maturity. Hercules believes disclosing DNOI and the related per
share measures are useful and appropriate supplements and not alternatives to
GAAP measures for net operating income, net income, earnings per share and
cash flows from operating activities.

Dividends

The Board of Directors has declared a third quarter cash dividend of$0.24per
share that will be payable onNovember 21, 2012 to shareholders of record as
ofNovember 14, 2012. This dividend would represent the Company’s twenty-ninth
consecutive dividend declaration since its initial public offering, bringing
the total cumulative dividend declared to date to $7.64 per share.

Share Repurchases

In July 2012, the Board of Directors approved extending Hercules’ share
repurchase program through February 2013. During the third quarter of 2012 the
Company did not repurchase shares of its common stock.

Liquidity and Capital Resources

The Company ended the third quarter with approximately$261.8 million in
available liquidity, including $107.1 million in cash, $24.7 million in SBA
borrowing capacity and $130.0 million in credit facility availability.

In July 2012, Hercules closed an additional issuance of its 7.00% Senior
Unsecured Notes due 2019 (the “April 2019 Notes”) that the Company had
originally issued onApril 17, 2012. Hercules issued approximately $41.5
million in additional April 2019 Notes, bringing the total amount of April
2019 Notes issued in the single series to approximately $84.5 million. The
April 2019 Notes trade on the NYSE under the trading symbol "HTGZ."

In September 2012, Hercules closed a public offering of$75.0 millionin
aggregate principal amount of its 7.00% Senior Unsecured Notes due 2019 (the
"September 2019Notes"). In October 2012, the Company closed two
over-allotment options of the September 2019 Notes in the amounts of $10.0
million and approximately $900,000, bringing the total aggregate principal
amount of September 2019 Notes issued to approximately $85.9 million. The
September 2019 Notes trade on the New York Stock Exchange (the "NYSE") under
the trading symbol "HTGY."

As of September 30, 2012, Hercules did not have any outstanding borrowings
under theWells Fargo credit facility. Hercules has a committed credit
facility withWells Fargofor approximately $75.0 millionin initial credit
capacity under a$300.0 millionaccordion credit facility. Additional lenders
may be added to the facility over time to reach up to an aggregate of$300.0
million. We expect to continue discussions with various other potential
lenders to join the Wells facility; however, there can be no assurances that
additional lenders will join the facility.

Pricing atSeptember 30, 2012under theWells Fargocredit facility was
LIBOR+3.50% with a floor of 4.25%.

Hercules has access to$55.0 million under the Union Bank facility. Union Bank
andRBC Capital Marketshave made commitments of$30.0 millionand$25.0
million, respectively. As of September 30, 2012, Hercules did not have any
outstanding borrowings under theUnion Bank/RBCcredit facility.

Pricing atSeptember 30, 2012under theUnion Bank credit facility is
LIBOR+2.25% with a floor of 4.0%.

The Company locked in a rate of 2.245%, or 3.049% including annual fees, per
annum for 10 years on $24.3 million of SBA debentures which were borrowed in
September 2012. In August 2012, Hercules repaid $24.7 million of SBA
debentures priced at 6.405%, including annual fees. AtSeptember 30, 2012,
Hercules had approximately$200.3 millionin outstanding debentures under the
SBIC program, as part of its total potential maximum debentures of$225.0
million allowed under the SBIC program. In September 2012, Hercules received
approval from the SBA to borrow $24.7 million in debentures under its second
SBIC license. There can be no assurances what the pricing will be or whether
we will draw on any possible commitment.

Subsequent to quarter end, Hercules completed a follow-on public offering of
3.1 million shares of its common stock at a price of $10.85 per share,
resulting in proceeds of approximately$33.6 million, excluding offering
related expenses.

Net Asset Value

At September 30, 2012, the Company’s net assets were approximately $469.1
million, down 1.2% as compared to $474.8 million as of June 30, 2012.

As of September 30, 2012, net asset value per share was $9.42 on 49.8 million
outstanding shares, compared to $9.54 on 49.7 million shares as of June 30,
2012.

Portfolio Asset Quality

As of September 30, 2012, grading of the debt portfolio at fair value,
excluding warrants and equity investments, was as follows:

Grade 1  $117.0 million or 16.9% of the total portfolio
Grade 2   $418.5 million or 60.3% of the total portfolio
Grade 3   $139.3 million or 20.1% of the total portfolio
Grade 4   $16.4 million or 2.4% of the total portfolio
Grade 5   $2.5 million or 0.3% of the total portfolio

At September 30, 2012, the weighted average loan grade of the portfolio was
2.12 on a scale of 1 to 5, with 1 being the highest quality, compared with
2.08 as of June 30, 2012. Hercules’ policy is to generally adjust the grading
down on its portfolio companies as they approach the need for additional
equity capital.

Subsequent Events

1. As of October 30, 2012, Hercules has:

a. Closed commitments of approximately $73.6 million to new and existing
portfolio companies, and funded approximately $29.2 million since the close of
the third quarter.

b. Pending commitments (signed non-binding term sheets) of approximately
$166.0 million.

The table below summarizes our year-to-date closed and pending commitments as
follows:

Closed Commitments and Pending Commitments (in millions)
January 1- September 30, 2012 Closed Commitments   $376.7
Q4-12 Closed Commitments (as of October 30, 2012)  $73.6
Total year-to-date 2012 Closed Commitments(a)      $450.3
Pending Commitments (as of October 30, 2012)^(b)   $166.0
Total year-to-date                                 $616.3

Notes:

a. Closed Commitments may include renewals of existing credit facilities. Not
all Closed Commitments result in future cash requirements. Commitments
generally fund over the two succeeding quarters from close.

b. Not all pending commitments (signed non-binding term sheets) are expected
to close and do not necessarily represent any future cash requirements.

2. On October 3, 2012, Hercules closed a public offering of 3.1 million shares
of its common stock at a price of $10.85per share, resulting in proceeds of
approximately$33.6 million,excluding other offering expenses.

3. In October 2012, in connection with the public offering of$75.0 millionin
aggregate principal amount of the September 2019 Notes, the underwriters
exercised their over-allotment option for an additional$10.9 million in
aggregate principal amount of the September 2019 Notes, bringing the total
size of the offering to approximately$85.9 million.

4. In October 2012, Hercules’ portfolio company Nextwave Pharmaceuticals
reached a definitive agreement to be acquired by Pfizer Inc. (NYSE: PFE).
Pfizer is exercising the option to acquire NextWave and will make a payment of
$255 million to NextWave shareholders at the close of the deal. NextWave
shareholders are eligible to receive additional payments of up to $425 million
if certain sales milestones are met for a total potential transaction value of
$700 million.

Conference Call

Hercules has scheduled its 2012 third quarter financial results conference
call for November 1, 2012 at 2:00 p.m. PST (5:00 p.m. EST). To listen to the
call, please dial (877) 304-8957 or (408) 427-3709 approximately 10 minutes
prior to the start of the call. A taped replay will be made available
approximately three hours after the conclusion of the call and will remain
available for seven days. To access the replay, please dial (855) 859-2056 or
(404) 537-3406 and enter the passcode 24141891.

About Hercules Technology Growth Capital, Inc.:

Hercules Technology Growth Capital, Inc. (NYSE: HTGC) (“Hercules”) is the
leading specialty finance company focused on providing senior secured loans to
venture capital-backed companies in technology-related markets, including
technology, biotechnology, life science, and cleantech industries, at all
stages of development. Since inception (December 2003), Hercules has committed
more than $3.0 billion to over 215 companies and is the lender of choice for
entrepreneurs and venture capital firms seeking growth capital financing.

Hercules’ common stock trades on the New York Stock Exchange ("NYSE") under
the ticker symbol "HTGC."

In addition, Hercules has two outstanding bond issuances of 7.00% Senior Notes
due 2019—the April 2019 Notes and September 2019 Notes—which trade on the NYSE
under the symbols “HTGZ” and “HTGY,” respectively.

Companies interested in learning more about financing opportunities should
contactinfo@htgc.com, or call 650-289-3060.

Forward-Looking Statements:

The information disclosed in this release is made as of the date hereof and
reflects Hercules most current assessment of its historical financial
performance. Actual financial results filed with the Securities and Exchange
Commission may differ from those contained herein due to timing delays between
the date of this release and confirmation of final audit results. These
forward-looking statements are not guarantees of future performance and are
subject to uncertainties and other factors that could cause actual results to
differ materially from those expressed in the forward-looking statements
including, without limitation, the risks, uncertainties, including the
uncertainties surrounding the current market volatility, and other factors we
identify from time to time in our filings with the Securities and Exchange
Commission. Although we believe that the assumptions on which these
forward-looking statements are based are reasonable, any of those assumptions
could prove to be inaccurate and, as a result, the forward-looking statements
based on those assumptions also could be incorrect. You should not place undue
reliance on these forward-looking statements. The forward-looking statements
contained in this release are made as of the date hereof, and Hercules assumes
no obligation to update the forward-looking statements for subsequent events.

                                                               
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
(unaudited)
(dollars in thousands, except per share data)
                                                                  
                                                  September 30,
                                                     2012         December 31,
                                                  (unaudited)       2011    
Assets
Investments:
Non-control/Non-affiliate investments (cost of    $  771,184     $  651,843
$788,526 and $642,038, respectively)
Affiliate investments (cost of $4,256 and            3,275           -
$3,236, respectively)
Control investments (cost of $0 and $11,266,        -             1,027   
respectively)
Total investments, at value (cost of $792,782        774,459         652,870
and $656,540, respectively)
Cash and cash equivalents                            107,093         64,474
Interest receivable                                  7,774           5,820
Other assets                                        20,187        24,230  
Total assets                                      $  909,513    $  747,394 
                                                                  
Liabilities
Accounts payable and accrued liabilities          $  9,491       $  10,813
Wells Fargo Loan                                     -              10,187
2019 Notes                                           159,490         -
Long-term Liabilities (Convertible Debt)             71,165         70,353
Long-term SBA Debentures                            200,250       225,000 
Total liabilities                                    440,396        316,353
                                                                  
Net assets consist of:
Common stock, par value                              51              44
Capital in excess of par value                       535,707         484,244
Unrealized depreciation on investments               (18,618  )      (3,431  )
Accumulated realized losses on investments           (40,993  )      (43,042 )
Distributions in excess of investment income         (7,030   )      (6,774  )
Total net assets                                    469,117      431,041 
Total liabilities and net assets                  $  909,513    $  747,394 
                                                                  
Shares of common stock outstanding ($0.001 par       49,785          43,853
value, 100,000,000 authorized)
Net asset value per share                         $  9.42        $  9.83
                                                                  

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
                                                               
                                                                    
                                                                    
                  Three Months Ended September     Nine Months Ended September
                  30,                              30,
                    2012           2011          2012          2011   
Investment
Income:
Interest income
Non Control/Non
Affliate          $  21,512        $  16,405       $  62,502        $ 50,146
investments
Affliate             238              5               686             9
investments
Control             -              -             -             777    
investments
Total interest      21,750         16,410        63,188        50,932 
income
Fees
Non Control/Non
Affliate             2,150            2,264           6,936           7,639
investments
Affliate             1                -               1               -
investments
Control             -              10            -             84     
investments
Total fees          2,151          2,274         6,937         7,723  
Total
investment          23,901         18,684        70,125        58,655 
income
Operating
expenses:
Interest             4,908            3,408           13,309          8,803
Loan fees            1,169            881             2,977           2,493
General and          2,445            1,659           6,126           6,196
administrative
Employee
Compensation:
Compensation         2,919            3,273           9,566           9,888
and benefits
Stock-based         1,109          870           3,111         2,518  
compensation
Total employee      4,028          4,143         12,677        12,406 
compensation
Total operating     12,550         10,091        35,089        29,898 
expenses
Net investment       11,351           8,593           35,036          28,757
income
Net realized
gains (loss) on
investments
Non Control/Non
Affliate            (9,091  )       (1,601  )      2,049         3,429  
investments
Total net
realized gain       (9,091  )       (1,601  )      2,049         3,429  
(loss) on
investments
Net increase
(decrease) in
unrealized
appreciation
(depreciation)
on investments
Non Control/Non
Affliate             2,372            (730    )       (12,922  )      4,148
investments
Affliate             113              (53     )       (2,265   )      (3,425 )
investments
Control             -              14            -             (3,546 )
investments
Total net
unrealized
(depreciation)      2,485          (769    )      (15,187  )     (2,823 )
appreciation on
investments
Total net
realized and        (6,066  )       (2,370  )      (13,138  )     606    
unrealized gain
(loss)
Net increase
(decrease) in
net assets        $  4,745        $  6,223       $  21,898       $ 29,363 
resulting from
operations
Net investment
income before
provision for
income taxes
and investment
gains and
losses per
common share:
Basic             $  0.23         $  0.20        $  0.71         $ 0.67   
Net increase in
net assets
resulting from
operations per
common share
Basic             $  0.09         $  0.14        $  0.44         $ 0.67   
Diluted           $  0.09         $  0.14        $  0.44         $ 0.67   
Weighted
average shares
outstanding
Basic               48,750         43,071        48,130        42,920 
Diluted             48,808         43,337        48,237        43,251 
                                                                             

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

NON GAAP FINANCIAL MEASURES

(in thousands, except per share data)
                               Three Months Ended September 30,
                                     2012                    2011      
Reconciliation of Adjusted
NII to Net Investment
Income
Net Investment Income           $     11,351                $    8,593
Dividends paid on unvested           (249       )              (175      )
restricted shares (1)
Net investment income, net
of dividends paid on            $     11,102                $    8,418
unvested restricted shares
                                                            
Net investment income
before investment gains
and losses per common
share: (2)
Basic                           $     0.23                 $    0.20      
                                                            
Adjusted net investment
income before investment
gains and losses per
common share: (3)
Basic                           $     0.23                 $    0.20      
                                                            
Weighted average shares
outstanding
Basic                                48,750                   43,071    
                                                            
(1) Unvested restricted shares as of the dividend record date in the second
quarter of 2012 and 2011 was approximately 1,037,000 and 795,246 respectively
(2) Net investment income per share is calculated as the ratio of income and
losses allocated to common shareholders divided by shares outstanding.
(3) Adjusted net income per share is calculated as Net investment income per
share, adding dividends paid on unvested restricted shares to the amounts of
income and losses allocated to common shareholders.


Adjusted net investment income per basic and diluted share, ”Adjusted NII”
consists of GAAP net investment income, excluding the impact of dividends paid
on unvested restricted common stock divided by the weighted average basic and
fully diluted share outstanding for the period under measurement. For
reporting purposes, Hercules calculates net investment income per share and
change in net assets per share on a basic and fully diluted basis by applying
the two-class method, under GAAP. This GAAP method excludes unvested
restricted shares and the pro rata earnings associated with the shares from
per share calculations.

Hercules believes that providing Adjusted NII affords investors a view of
results that may be more easily compared to other companies and enables
investors to consider the Company’s results on both a GAAP and Adjusted basis.
Adjusted NII should not be considered as an alternative to, as an independent
indicator of the Company’s operating performance, or as a substitute for Net
Investment Income per basic and diluted share (each computed in accordance
with GAAP). Instead, Adjusted NII should be reviewed in connection with
Hercules’ consolidated financial statements, to help analyze how the Company
is performing. Investors should use Non-GAAP measures only in conjunction with
its reported GAAP results.

HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

NON GAAP FINANCIAL MEASURES

(in thousands, except per share data)
                                                            
                                              Three Months Ended September 30,
Reconciliation of DNOI to Net investment      2012                2011
income
Net investment income                         $    11,351         $   8,593
Stock-based compensation                          1,109             870
DNOI                                          $    12,460         $   9,463
                                                                  
DNOI per share-weighted average common
shares
Basic                                         $    0.26           $   0.22
                                                                  
Weighted average shares outstanding
Basic                                             48,750            43,071
                                                                      

Distributable Net Operating Income, “DNOI” represents net investment income as
determined in accordance with U.S. generally accepted accounting principles,
or GAAP, adjusted for amortization of employee restricted stock awards and
stock options. Hercules views DNOI and the related per share measures as
useful and appropriate supplements to net operating income, net income,
earnings per share and cash flows from operating activities. These measures
serve as an additional measure of Hercules’ operating performance exclusive of
employee restricted stock amortization, which represents expenses of the
Company but does not require settlement in cash. DNOI does include
paid-in-kind, or PIK, interest and back end fee income which are generally not
payable in cash on a regular basis, but rather at investment maturity or when
declared. DNOI should not be considered as an alternative to net operating
income, net income, earnings per share and cash flows from operating
activities (each computed in accordance with GAAP). Instead, DNOI should be
reviewed in connection with net operating income, net income (loss), earnings
(loss) per share and cash flows from operating activities in Hercules’
consolidated financial statements, to help analyze how Hercules’ business is
performing.

Contact:

Hercules Technology Growth Capital, Inc.
Main, 650-289-3060 HT-HN
info@htgc.com
Sally Borg, 650-289-3066
sborg@htgc.com