CAPITAL
SOUTHWEST
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      CAPITAL SOUTHWEST TO PURSUE STRATEGIC ALTERNATIVES FOR LIFEMARK GROUP


DALLAS -  November  4,  2008 -  Capital  Southwest  Corporation  (Nasdaq:  CSWC)
announced today that it has retained Raymond James & Associates as its financial
advisor to explore various strategic alternatives for its wholly-owned portfolio
company,  Lifemark  Group,  including  a potential  recapitalization  or sale of
Lifemark. Capital Southwest has owned Lifemark Group since 1969.

Lifemark  Group,  based in Hayward,  California,  owns and operates  cemeteries,
funeral homes,  mausoleums and mortuaries.  Its operations,  all of which are in
California,  include properties in San Mateo,  Oakland,  Hayward and Sacramento.
For the fiscal year ended March 31, 2008,  Lifemark  reported  revenues of $29.7
million.  The company has recently completed a significant  capital  expenditure
program at its  Skylawn  Memorial  Park  cemetery  in San Mateo,  including  the
addition of a significant new funeral home at that location.

Gary  Martin,  chairman  and  president  of Capital  Southwest,  commented  that
"Lifemark  operates some of the most  distinctive  and best-known  properties in
America.  Its management team has operated and grown this business  considerably
over time with minimal oversight from Capital Southwest."

Capital Southwest's current investment criteria emphasize investments in rapidly
growing  private  companies with  outstanding  management;  $0 to $10 million of
EBITDA; and the potential to grow revenues at 20% or more per year.

Capital   Southwest  does  not  intend  to  comment   further  on  the  possible
recapitalization  or  sale of  Lifemark  Group  unless  and  until a  definitive
agreement for a transaction has been reached,  or a determination is made not to
pursue  such a  transaction.  There can be no  assurance  as to whether  Capital
Southwest  will  enter  into or  consummate  a  transaction  as a result of this
process.

About Capital Southwest Corporation
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Capital Southwest is a Dallas-based  business  development company that provides
patient equity capital to exceptional businesses.  As a public company,  Capital
Southwest  has the  flexibility  to hold  investments  indefinitely,  which  has
provided its portfolio  company 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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