CAPITAL SOUTHWEST NAMES NEW CEO


Dallas, April 18, 2007 - William R. Thomas,  president,  chief executive officer
and chairman,  today announced his planned  retirement on July 16th as president
and chief executive officer of Capital  Southwest  Corporation  (Nasdaq:  CSWC).
Founded in 1961,  Capital  Southwest is a  publicly-owned  Dallas-based  venture
capital/business  development  investment  company with assets of $730  million.
Recently, it was included in Forbes.com's List of America's 100 Most Trustworthy
Companies.  Mr.  Thomas,  78,  joined  Capital  Southwest  in 1962  and has been
president  since  1980.  After his  retirement  as  president,  Mr.  Thomas will
continue to serve as chairman of the board in a non-executive  capacity and will
remain the company's largest shareholder, owning 16% including family interests.

Gary L. Martin,  currently  president of The Whitmore  Manufacturing  Company of
Rockwall,  Texas, a 100% owned portfolio company of Capital Southwest, was named
by the board of directors to succeed Mr. Thomas as president and chief executive
officer.  Mr. Martin, 60, joined Capital Southwest  Corporation in 1972 as chief
financial  officer,  subsequently  serving  as  vice  president  and  secretary-
treasurer  before  becoming  president of  Whitmore,  an  industrial  lubricants
manufacturer  acquired  by  Capital  Southwest  in 1979.  Mr.  Martin has been a
director of Capital  Southwest  since 1988 and has been involved in  overseeing,
evaluating and monitoring its investments. He earned a BBA degree in finance and
accounting from the University of Oklahoma, is a Certified Public Accountant and
a graduate of Harvard Business School's Advanced Management Program.

During the 45 years since William R. Thomas joined Capital Southwest on April 1,
1962, the company's  split-adjusted  net asset value has increased over 105-fold
from $1.25 per share to  approximately  $132.36 per share on March 31, 2007.  If
all  distributions  and tax credits had been  reinvested over the past 45 years,
the  resulting  net asset value would have been 358 times the  original  amount.
This  corresponds  to a 14.0%  compounded  annual  growth in net asset value and
14.8%  annual  growth if  Capital  Southwest,  like most  investment  companies,
included deferred taxes in its net asset value.  Based on split-adjusted  market
prices of $0.95 and $153.67 per share at the  beginning  and end of this 45 year
period, and assuming reinvestment of all distributions and tax credits,  $10,000
invested in Capital  Southwest would have a market value of $5,472,000 - a 15.0%
annual return. A corresponding investment in the S&P 500 would be worth $880,000
- a 10.5% annual return.

After the  management  transition in July, as chairman of the board,  Mr. Thomas
will still be involved in Capital  Southwest's  investment  activities.  He will
maintain  an  office  at the  company's  Dallas  headquarters,  but will  devote
substantially  less  time to the  company's  business.  Before  joining  Capital
Southwest,  his experience  included positions in the chemical industry and in a
consulting  firm. His education  includes an MBA with  distinction  from Harvard
Business School and a BS in chemical  engineering from Texas A&M. He 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 campaign stars.

Contact: William R. Thomas or Susan K. Hodgson, 972-233-8242



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