Hercules’ Portfolio Company Solar Spectrum Strengthens Market Position With Strategic Merger

August 28, 2017

Transaction strengthens market position and creates one of the
nation’s largest residential solar companies

PALO ALTO, Calif.–(BUSINESS WIRE)–Hercules
Capital, Inc. (NYSE: HTGC) (“Hercules” or the “Company”), the
leading specialty financing provider to innovative venture growth stage
companies backed by leading venture capital firms, congratulates Solar
Spectrum, a leader in the global solar market, on its recently completed
merger with Horizon Solar Power, of Temecula, California. Since 2008,
Horizon Solar has served as a premier designer and installer of
residential and commercial solar systems in Southern California.

“We are very pleased to see Solar Spectrum’s management team, along with
its new lead investor Northern Pacific Group, take quick, decisive,
action since emerging from bankruptcy,” said Manuel Henriquez chairman
and CEO of Hercules Capital. “The combination of the two companies will
create one of the nation’s largest residential solar providers. In
addition, Horizon Solar Power, led by its distinguished CEO Frank
Kneller, has achieved an outstanding record of accomplishments and has
operated profitability for the past several years. Its combination with
Sungevity’s best-in-class technology and brand, should create one of the
nation’s fastest growing and profitable residential solar providers.”

The merger of Solar Spectrum and Horizon Solar will create the second
largest provider of residential solar systems in California and the
fourth largest in the United States. Residential solar power generation
is a $9 billion annual industry with a total addressable market in the
United States of $800 billion. Solar Spectrum and Horizon Solar will
operate under the Sungevity brand.

The merger was orchestrated by Solar Spectrum’s shareholders led by
Northern Pacific Group which is based in Wayzata, Minnesota. The
transaction closed on August 17, 2017. Following the transaction, Solar
Spectrum’s shareholder group includes Northern Pacific Group,
International, Hercules Capital, DGB Investments, Bindley Capital and
the management teams of Horizon Solar and Solar Spectrum. Hercules
Capital provided senior debt financing. Terms of the transaction were
not disclosed.

About Hercules Capital, Inc.

Hercules Capital, Inc. (NYSE: HTGC) (“Hercules”) is the leading and
largest specialty finance company focused on providing senior secured
venture growth loans to high-growth, innovative venture capital-backed
companies in a broad variety of technology, life sciences and
sustainable and renewable technology industries. Since inception
(December 2003), Hercules has committed more than $6.9 billion to over
380 companies and is the lender of choice for entrepreneurs and venture
capital firms seeking growth capital financing. Companies interested in
learning more about financing opportunities should contact [email protected],
or call 650.289.3060.

Hercules’ common stock trades on the New York Stock Exchange (NYSE)
under the ticker symbol "HTGC." In addition, Hercules has one
outstanding bond issuances of 6.25% Unsecured Notes due July 2024 (NYSE:
HTGX).

Forward-Looking Statements

This press release may contain “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. You
should understand that under Section 27A(b)(2)(B) of the Securities Act
of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange
Act of 1934, as amended, or the Exchange Act, the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995 do
not apply to forward-looking statements made in periodic reports we file
under the Exchange Act.

The information disclosed in this press release is made as of the date
hereof and reflects Hercules most current assessment of its historical
financial performance. Actual financial results filed with the SEC may
differ from those contained herein due to timing delays between the date
of this release and confirmation of final audit results. These
forward-looking statements are not guarantees of future performance and
are subject to uncertainties and other factors that could cause actual
results to differ materially from those expressed in the forward-looking
statements including, without limitation, the risks, uncertainties,
including the uncertainties surrounding the current market volatility,
and other factors the Company identifies from time to time in its
filings with the SEC. Although Hercules believes that the assumptions on
which these forward-looking statements are based are reasonable, any of
those assumptions could prove to be inaccurate and, as a result, the
forward-looking statements based on those assumptions also could be
incorrect. You should not place undue reliance on these forward-looking
statements. The forward-looking statements contained in this release are
made as of the date hereof, and Hercules assumes no obligation to update
the forward-looking statements for subsequent events.