Horizon Banks on SimpleTuition

Horizon Technology Finance Corp., the provider of secured loans to developing companies, did a $5 million venture loan to SimpleTuition Inc., a provider of interactive services for students. The company, based in Boston, Massachusetts, will use capital to fund growth. SimpleTuition is backed by Atlas Venture, Flybridge Capital Partners, and North Hill Ventures.

PRESS RELEASE:

FARMINGTON, Conn. and BOSTON, Aug. 29, 2012 (GLOBE NEWSWIRE) — 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 $5 million
venture loan to SimpleTuition, Inc. (“SimpleTuition”), a leading
provider of tips, advice and interactive tools that help students save
on college-related expenses. The funds provided to SimpleTuition will
support its continued growth.

“SimpleTuition is a unique and exciting company, providing significant
value to students and their families seeking to address the rising
costs of college tuition,” stated Gerald A. Michaud, President of
Horizon. “The company has developed a wide range of innovative tools
and offerings with a focus on affordable higher education. Horizon is
pleased to provide this venture debt financing to SimpleTuition as the
company continues to grow its interactive platform and help meet a
critical need for millions of college students.”

Kevin Walker, Co-Founder and CEO of SimpleTuition, stated, “This
venture loan from Horizon has increased our liquidity as we continue to
expand our tools and services to assist college students in managing
the costs of higher education. We appreciate this new partnership with
Horizon, a highly respected direct originator of venture loans. Their
ability to seamlessly provide our company with a customized financing
solution has strengthened our position to drive future growth.”

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
regional offices in Walnut Creek, California and Reston, Virginia, 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 SimpleTuition

Since its launch in 2006, SimpleTuition has helped more than 10 million
families afford higher education. SimpleTuition.com features tips,
advice, interactive tools and deals that ensure students plan better
for college costs, pay less for college-related expenses, and be
smarter about how they manage and pay back their student loans. Named
Best Financial Services Site by Kiplinger’s, SimpleTuition is
headquartered in Boston, Mass., and is funded by Atlas Venture,
Flybridge Capital Partners, and North Hill Ventures. For more
information, visit SimpleTuition.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.