Exhibit 99.1 TECHNOLOGY INVESTMENT CAPITAL CORP. 8 Sound Shore Drive, Suite 255 Greenwich, CT 06830 Tel: (203) 983-5275 Fax: (203) 983-5290 TICC REPORTS FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2004 Greenwich, CT - 11/4/2004 - Technology Investment Capital Corp. (Nasdaq: TICC) announced today results for the quarter ended September 30, 2004. HIGHLIGHTS o We recorded net investment income of $1,347,156, or $0.13 per share for the third quarter and net investment income of $1,576,618, or $0.16 per share for the nine months ended September 30, 2004. o We closed four new transactions during the third quarter totaling $39.2 million, of which $31.2 million was funded and $8.0 million was committed. o TrenStar, Inc. ($15.0 million - senior secured notes with warrants) o The Endurance International Group ($7.0 million - senior secured notes with warrants), and a commitment to fund an additional $3.0 million of senior secured notes with warrants assuming the company achieves certain milestones o DirectRevenue, LLC ($6.7 million - senior secured notes with warrants) o Avue Technologies Corporation ($2.5 million - senior secured notes with warrants), and a commitment to fund an additional $5.0 million of senior secured notes with warrants assuming the company achieves certain milestones o On October 4, 2004, we announced a $13.0 million transaction with 3001, Inc. consisting of $10.0 million in senior unsecured notes and $3.0 million in preferred and common stock. o We have funded and committed $87.9 million (representing approximately 64% of our net IPO proceeds) in 8 transactions year to date. o At September 30, 2004, the weighted average yield of our investments (excluding cash equivalents) was 10.9% (the weighted average yield is computed using interest rates as of the balance sheet date, weighted by their respective costs). o We declared and paid a dividend of $0.11 per share during the third quarter. o On October 27, 2004, our Board of Directors declared a dividend of $0.11 for the fourth quarter, payable on December 31, 2004 to stockholders of record as of December 10, 2004. The ex-dividend date is December 8, 2004. o The dividend we intend to distribute on December 31, 2004 may result in a tax return of capital to our stockholders. A written statement identifying the source of the dividend (i.e., net income from operations, accumulated undistributed net profits from the sale of securities, and/or paid-in capital surplus) will accompany our fourth quarter dividend payments to our stockholders. We will host a conference call to discuss our third quarter results today, November 4th at 10:00 AM EST. Please call 877-407-8031 to participate. A replay of the conference call will be available for approximately 30 days. The replay number is 877-660-6853, the account number is 1628 and the access code is 121009. The following financial statements are unaudited and without footnotes. Readers who would like additional information should obtain our Form 10-K for the period ended December 31, 2003 and subsequent reports on Form 10-Q as they are filed. TECHNOLOGY INVESTMENT CAPITAL CORP. BALANCE SHEET UNAUDITED AUDITED SEPTEMBER 30, DECEMBER 31, 2004 2003 - ------------------------------------------------------------------------------------------------------------- ASSETS Investments at fair value (cost: $64,610,162 @ 9/30/04; none @ 12/31/03) $64,610,162 $0 Cash and cash equivalents 73,794,091 138,228,765 Interest receivable 598,791 23,667 Prepaid assets 31,087 72,446 -------------------------------------- Total Assets $139,034,131 $138,324,878 ====================================== LIABILITIES Accrued expenses $932,640 $335,810 Accrued offering expenses 0 19,441 -------------------------------------- Total Liabilities 932,640 355,251 -------------------------------------- STOCKHOLDERS' EQUITY Common stock, $0.01 par value, 100,000,000 shares authorized, and 10,125,406 and 10,000,100 issued and outstanding, respectively 101,254 100,001 Capital in excess of par value 139,959,089 138,189,832 (Overdistributed) net investment income (loss) (1,958,852) (320,206) -------------------------------------- Total Stockholders' Equity 138,101,491 137,969,627 -------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $139,034,131 $138,324,878 - -----------------------------------------------------------------------====================================== TECHNOLOGY INVESTMENT CAPITAL CORP. SCHEDULE OF INVESTMENTS COMPANY (1) INDUSTRY INVESTMENT COST FAIR VALUE (2) - ----------------------------------------------------------------------------------------------------------------- Questia Media, Inc. Digital media Senior secured notes (3) (4) $ 8,665,292 $ 8,665,292 MortgageIT, Inc. Financial services Senior secured notes 15,000,000 15,000,000 Advanced Aesthetics Medical services Senior secured notes 10,000,000 10,000,000 Institute Warrants to purchase common stock - - The Endurance Webhosting Senior secured notes (4) (5) 6,855,600 6,855,600 International Group Warrants to purchase convertible preferred stock 150,000 150,000 DirectRevenue, LLC Internet advertising Senior secured notes (5) (6) 6,199,000 6,199,000 Warrants to purchase common units 240,000 240,000 Avue Technologies Software Senior secured notes (4) (5) 2,487,270 2,487,270 Corporation Warrants to purchase common stock 13,000 13,000 TrenStar, Inc. Logistics Senior secured notes (3) 15,000,000 15,000,000 Warrants to purchase convertible preferred stock - - -------------------------------- Total $64,610,162 $64,610,162 ================================ (1) We do not "control" and are not an "affiliate" of any of our portfolio companies, each as defined in the Investment Company Act of 1940 (the "1940 Act"). In general, under the 1940 Act, we would "control" a portfolio company if we owned 25% or more of its voting securities and would be an "affiliate" of a portfolio company if we owned 5% or more of its voting securities. (2) Fair value is determined in good faith by the Board of Directors of the Company. (3) Investment has some payment-in-kind interest. (4) Transaction also includes a commitment for additional notes. (5) Cost and fair value reflect accretion of original issue discount. (6) Cost and fair value reflect repayment of principal. TECHNOLOGY INVESTMENT CAPITAL CORP. STATEMENT OF OPERATIONS UNAUDITED UNAUDITED 3 MONTHS ENDED 9 MONTHS ENDED SEPTEMBER 30, 2004 SEPTEMBER 30, 2004 - ------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest income $1,652,616 $3,279,261 Other fees 691,921 1,221,921 --------------------------------------- Total Investment Income 2,344,537 4,501,182 --------------------------------------- EXPENSES Salaries and benefits 54,780 152,918 Investment advisory fees 698,337 2,077,286 Professional fees 126,500 353,596 Insurance 20,240 60,280 Directors' fees 32,250 102,750 General and administrative 65,274 177,734 --------------------------------------- Total Expenses 997,381 2,924,564 --------------------------------------- NET INVESTMENT INCOME $1,347,156 $1,576,618 ======================================= NET INCREASE IN STOCKHOLDERS' $1,347,156 $1,576,618 EQUITY RESULTING FROM OPERATIONS Net increase in stockholders' equity resulting from Operations per common share: Basic and Diluted $0.13 $0.16 Weighted average shares of common stock outstanding: Basic and Diluted 10,093,067 10,046,048 - ------------------------------------------------------------------------------------------------------------- TECHNOLOGY INVESTMENT CAPITAL CORP. FINANCIAL HIGHLIGHTS UNAUDITED UNAUDITED 3 MONTHS ENDED 9 MONTHS ENDED SEPTEMBER 30, 2004 SEPTEMBER 30, 2004 - ------------------------------------------------------------------------------------------------------------- PER SHARE DATA (1) - ------------------ Net asset value at beginning of period $13.61 $13.80 Net investment income (2) 0.13 0.16 Net unrealized gains (3) 0.01 0.00 Distributions from net investment income (0.11) (0.32) --------------------------------------- Net asset value at end of period $13.64 $13.64 ======================================= Per share market value at beginning of period $13.51 $15.55 Per share market value at end of period 13.99 13.99 Total return (4) (5) 4.4% (8.0)% Shares outstanding at end of period 10,125,406 10,125,406 RATIOS/SUPPLEMENTAL DATA - ------------------------ Net assets at end of period 138,101,491 138,101,491 Average net assets 137,584,626 137,711,756 Ratio of expenses to average net assets - annualized 2.90% 2.83% Ratio of net investment income to average net assets - annualized 3.92% 1.53% - ------------------------------------------------------------------------------------------------------------- (1) Basic per share data. (2) Represents per share net investment income for the period. (3) Represents amount necessary to reconcile change in net asset value per share (4) Calculated using weighted average share method. (5) Total return equals the increase or decrease in the ending market value plus dividends divided by the beginning market value. ABOUT TECHNOLOGY INVESTMENT CAPITAL CORP. We are a publicly-traded business development company principally engaged in providing capital to small to mid-size technology-related companies. While the structures of our financings vary, we look to invest primarily in the non-public debt and equity of established technology-related businesses. Companies interested in learning more about financing opportunities should contact Barry Osherow at (203) 661-9572 or visit our website at www.ticc.com. FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) should also be considered to be forward-looking statements. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update such statements to reflect subsequent events.
