Investment Activity Increases for Fourth Consecutive Quarter;
       New Loan Commitments Increase to a Record $60 Million

FARMINGTON, Conn., July 10, 2012 (GLOBE NEWSWIRE) -- Horizon Technology
Finance Corporation (Nasdaq:HRZN) (the "Company" or "Horizon"), a
leading specialty finance company that provides secured loans to
venture capital and private equity backed development-stage companies
in the technology, life science, healthcare information and services
and clean-tech industries, today provided a portfolio update for the
second quarter of 2012.

Gerald A. Michaud, President of Horizon, commented, "With our enhanced
liquidity from our senior notes offering, we increased investment
activity for the fourth consecutive quarter. We were pleased to fund
seven new companies and expand several existing relationships during
the second quarter. Our record $60 million in new loan commitments
during the second quarter reflected the strong demand for Horizon's
debt products and strengthened our leading industry brand." Michaud
continued, "We began the quarter with a loan portfolio of $168 million
and, with our new loans funded and no prepayments in the second
quarter, we ended the quarter with a larger than expected portfolio
balance of $197 million. While the growth we achieved may not be fully
reflected in our second quarter results due to new loans funding late
in the quarter combined with a lower beginning portfolio balance and no
prepayment fees, we believe our significant market momentum, increased
portfolio and high-quality backlog position Horizon well for strong
future results."

New Loans Funded

Gross and net new loan investments during the second quarter of 2012
totaled $37.3 million. There were no refinanced balances in the second
quarter. During the second quarter of 2012, Horizon funded the
following loans:


  --  $6.7 million to Aquion Energy, Inc., a new portfolio company. Aquion is
      a developer and manufacturer of Aqueous Hybrid Ion batteries and energy
      storage systems.
  --  $4 million to Avalanche Technology, Inc., a new portfolio company.
      Avalanche is a developer of next-generation storage products utilizing
      its proprietary Spin Programmable Memory technology.
  --  $2.5 million to Celsion Corporation (Nasdaq:CLSN), a new portfolio
      company. Celsion is an oncology drug development company.
  --  $2.5 million to Grab Networks Holdings, Inc., an existing portfolio
      company. Grab is a premium video distribution company.
  --  $3.3 million to Luxtera, Inc., a new portfolio company. Luxtera is a
      developer of integrated silicon CMOS photonics.
  --  $2 million to OraMetrix, Inc., an existing portfolio company. OraMetrix
      is a provider of 3-D technology solutions for orthodontic care.
  --  $2.5 million to Sample6 Technologies, Inc., a new portfolio company.
      Sample6 is a developer of microbial monitoring technology for global
      food, healthcare and other industries.
  --  $3.75 million to Semprius, Inc., a new portfolio company. Semprius is a
      developer of high concentration photovoltaic solar modules.
  --  $0.5 million to Tigo Energy, Inc., an existing portfolio company. Tigo
      is a provider of solar optimization technology for photovoltaic solar
      installations.
  --  $5 million to a new portfolio company which has developed a technology
      to process biomass into fuel for clean technology applications.
  --  $3 million to an existing portfolio company which develops IT
      performance management software.
  --  $1.5 million to an existing portfolio company which develops complex
      event processing software.




Commitments

During the quarter ended June 30, 2012, Horizon closed new loan
commitments totaling $60.0 million to 11 companies, compared to the
quarter ended March 31, 2012, new loan commitments totaled $24.5
million to three companies.

Pipeline

As of June 30, 2012, Horizon's unfunded loan approvals and commitments
("Committed Backlog") increased to $39.3 million to 13 companies,
compared to a Committed Backlog of $16.0 million to six companies as of
March 31, 2012. While Horizon's portfolio companies have discretion
whether to draw down such commitments, in some cases, the right of a
company to draw down its commitment is subject to the portfolio company
achieving specific milestones.

About Horizon Technology Finance Corporation

Horizon Technology Finance Corporation is a business development
company that provides secured loans to development-stage companies
backed by established venture capital and private equity firms within
the technology, life science, healthcare information and services, and
clean-tech industries. The investment objective of Horizon Technology
Finance is to maximize total risk-adjusted returns by generating
current income from a portfolio of directly originated secured loans as
well as capital appreciation from warrants to purchase the equity of
portfolio companies. Headquartered in Farmington, Connecticut, with a
regional office in Walnut Creek, California, the Company is externally
managed by its investment advisor, Horizon Technology Finance
Management LLC. Horizon's common stock trades on the NASDAQ Global
Select Market under the ticker symbol "HRZN." In addition, the
Company's 7.375% Senior Notes due 2019 trade on the New York Stock
Exchange under the ticker symbol "HTF." To learn more, please visit
www.horizontechnologyfinancecorp.com.

Forward-Looking Statements

Statements included herein may constitute "forward-looking statements,"
which relate to future events or our future performance or financial
condition. These statements are not guarantees of future performance,
condition or results and involve a number of risks and uncertainties.
Actual results may differ materially from those in the forward-looking
statements as a result of a number of factors, including those
described from time to time in our filings with the Securities and
Exchange Commission. The Company undertakes no duty to update any
forward-looking statement made herein. All forward-looking statements
speak only as of the date of this press release.


CONTACT: Horizon Technology Finance Corporation
         Christopher M. Mathieu
         Chief Financial Officer
         (860) 676-8653
         chris@horizontechfinance.com
         
         Investor Relations and Media Contacts:
         The IGB Group
         Leon Berman / Michael Cimini
         (212) 477-8438 / (212) 477-8261
         lberman@igbir.com  / mcimini@igbir.com