FARMINGTON, Conn. and DULLES, Va., June 29, 2012 - Horizon Technology Finance Corporation (Nasdaq: HRZN) ("Horizon"), a leading specialty finance company that provides secured loans to venture capital and private equity backed development-stage companies in the technology, life sciences, healthcare information and services, and clean-tech industries, today announced that it has closed a $2.5 million venture loan to Grab Networks Holdings, Inc., a leading premium video distribution company which operates under the trade name Grab Media. The proceeds will be used to support the company's growth and expansion.

Gerald A. Michaud, President of Horizon, stated, "We are pleased to provide this venture loan to Grab Media. By partnering with Horizon, Grab Media's management and investors have demonstrated its confidence in our ability to help it achieve critical growth milestones and extend its liquidity runway. With this growth capital, Grab Media has enhanced its future prospects, distributing premium video content from a wide range of professional sources and brand-name advertisers to targeted viewers across the web."

Alvin Bowles, CEO of Grab Media, stated, "We are delighted to partner with Horizon on this important financing for Grab Media. Horizon's team of venture lending experts crafted a debt facility that meets our unique needs and strengthens our financial position. We appreciate the ongoing support of Horizon as we continue to grow our business."

About Horizon Technology Finance
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.

About Grab Media
Grab Media is a leading premium video distribution company. It connects premium video content from a wide collection of professional sources and brand-name advertisers to ideal viewers. Marketers rely on Grab Media to position their message in front of large-scale, engaged audiences, so they can focus on brand promotion. Grab Networks Holdings, Inc., formerly Anystream Inc., was founded in 2008 and is privately held. The company is headquartered in Dulles, VA. To learn more, visit us at www.grab-media.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