GLADSTONE CAPITAL CORP — Director's Dealing 2006

Sep 18, 2006

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: GLADSTONE CAPITAL CORP (GLAD)
CIK: 0001143513
Period of Report: 2006-09-14

Reporting Person: BRILL HARRY (CFO)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2006-09-14	Common Stock	M	4700	$15.00	Acquired	15200	Direct
2006-09-14	Common Stock	S	4700	$22.70	Disposed	10500	Direct
2006-09-14	Common Stock	M	3300	$15.00	Acquired	13800	Direct
2006-09-14	Common Stock	S	3300	$22.70	Disposed	10500	Direct
2006-09-15	Common Stock	M	3634	$15.00	Acquired	14134	Direct
2006-09-15	Common Stock	S	3634	$22.70	Disposed	10500	Direct
2006-09-15	Common Stock	M	6666	$15.00	Acquired	17166	Direct
2006-09-15	Common Stock	S	6666	$22.70	Disposed	10500	Direct
2006-09-15	Common Stock	M	10000	$22.55	Acquired	20500	Direct
2006-09-15	Common Stock	S	10000	$22.70	Disposed	10500	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2006-09-14	Stock Option	$15.00	M	8000	Disposed	2006-09-30	Common Stock (8000)	Direct
2006-09-15	Stock Options	$15.00	M	10300	Disposed	2006-09-30	Common Stock (10300)	Direct
2006-09-15	Stock Options	$22.55	M	10000	Disposed	2006-09-30	Common Stock (10000)	Direct

Footnotes

F1: The option vested in two equal installments of 10,000 shares each on 4/06/2005 and 4/06/2006.

F2: The option vested in two equal installments of 25,000 shares each on 08/23/2001 and 08/23/2002.