CAPITAL
SOUTHWEST
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CAPITAL SOUTHWEST DIRECTOR WILLIAM R. THOMAS PASSES AWAY


DALLAS -  September  24, 2008 - Capital  Southwest  Corporation  (Nasdaq:  CSWC)
announced  today that former CEO,  William R. Thomas,  80, has passed away. Bill
Thomas joined  Capital  Southwest in 1962 and served as the company's  president
from 1980 until his  retirement on July 16, 2007.  He was named  chairman of the
board in 1982 and continued on as a director upon his retirement.

          "The  entire  Capital  Southwest  family  mourns  the  passing of Bill
Thomas,  a great  business  leader,  an industry  icon,  a gentleman  and a good
friend," said Gary Martin.  "Bill  dedicated his life to Capital  Southwest and,
during his  illustrious  45-year career here, he attained  unparalleled  results
while  serving as a role  model of  integrity  for all who knew him.  He will be
greatly missed."

         Bill  Thomas was born on August 10, 1928 in Bryan,  Texas.  He received
his M.B.A.  with distinction from Harvard Business School and his B.S. degree in
chemical  engineering  from Texas A&M  University.  Thomas served as a U.S. Army
officer for more than five years and was awarded the Bronze  Star,  Purple Heart
and Korean  Service medal with five battle stars for heroic  actions  during the
Korean War.

         During  the 45 years  that  Thomas  served at  Capital  Southwest,  the
company's split-adjusted net asset value increased over 100-fold. In addition to
his natural  business  acumen,  Thomas placed a  significant  emphasis on fiscal
stewardship,  patience and integrity of its business managers, which contributed
greatly to the financial stability and growth of the company.

         "Much of  Capital  Southwest's  success  over the years has been due to
Bill's  strategic  vision  for the  company,"  Martin  added.  "He set the  gold
standard for the industry, and we plan to continue building on his legacy."

         Before joining Capital Southwest, Thomas held positions in the chemical
industry  and in a consulting  firm.  He also served as chairman of the National
Association of Securities Dealers (NASD) and as chairman of the NASD's Corporate
Advisory Board.

         Thomas  was  preceded  in death by his wife of 31  years,  Patricia  M.
Thomas,  and son,  Howard M.  Thomas.  He is  survived  by his  sister,  Anna B.
Killough, of Somerville,  Texas; daughter,  Suzanne B. Thomas, of Dallas, Texas;
son, William R. Thomas III, of Dallas, Texas;  daughter-in-law,  Christa Thomas;
and three grandchildren, Liam, Sarah and Alden Thomas, of Dallas, Texas.





About Capital Southwest Corporation
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Capital  Southwest is a Dallas-based  investment  company that provides  patient
equity capital to exceptional  businesses.  As a public company (Nasdaq:  CSWC),
Capital  Southwest has the flexibility to hold investments  indefinitely,  which
has  provided  its managers a stable  ownership  platform  since its founding in
1961. For more information about Capital Southwest,  visit the company's website
at www.capitalsouthwest.com.

Contact:   Gary L. Martin or Tracy L. Morris
           972-233-8242

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