ACAS American Capital, Ltd.

American Capital Invests $28.5 Million in Zenta Acquisition BETHESDA, Md., May 25 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. (NASDAQ:ACAS) announced today it has invested $28.5 million to support the acquisition of Zenta by H-Cube LLC. Zenta is a U.S.-based leader in high quality business process outsourcing services. H-Cube was formed earlier this year by GTCR Golder Rauner LLC and Henry Hortenstine, a former Executive Vice President of Affiliated Computer Services Inc., a Fortune 500 global business process outsourcing company. Mr. Hortenstine will become Executive Chairman of Zenta and Priya Hiranandani, Zenta's founder, will continue to serve as Zenta's Chief Executive Officer. American Capital's investment takes the form of a senior term loan and a modest equity co- investment alongside GTCR and Zenta senior management. American Capital has also committed additional debt financing to support anticipated growth and for other corporate purposes. "This is American Capital's fifth transaction with GTCR," said American Capital COO Ira Wagner. "We are investing in a demonstrated leader in the business processing services industry and working with a private equity firm with significant industry experience. We look forward to continuing to expand our relationship with GTCR and supporting the growth of Zenta." American Capital has invested over $2.4 billion in the last twelve months, $760 million year to date and over $350 million quarter to date. For more information about American Capital's portfolio, go to http://www.acas.com/our_portfolio/our_portfolio.cfm. "American Capital is backing a company with an outstanding history of revenue and earnings growth and a blue chip customer base in a growing industry," said American Capital Managing Director Tom Gregory. "In addition, Zenta's founder, Priya Hiranandani and Henry Hortenstine, the newly appointed Executive Chairman, will be working closely with an experienced management team. The combination of strong brand equity, infrastructure development and strong global growth dynamics in the business outsourcing industry add up to a winning investment." "Zenta has proved adept at managing a highly competitive labor market, improving and maintaining attractive operating margins," said American Capital Vice President Demian Kircher. "The services provided by Zenta enable their customers to lower their cost structure and maximize value." Zenta, founded in 2001 and headquartered in Wayne, Pennsylvania, with principal operating offices in India, provides business process outsourcing ("BPO") services. The Company is the sixth largest Indian BPO and one of the largest non-captive Indian BPO service providers in its market. Zenta currently has over 2,600 full time employees in its operational facilities in Mumbai, India. Zenta's business offering includes credit card servicing, mortgage servicing, accounts receivable management and insurance claims management. Zenta is ISO-9001 certified and was recently rated in the top 10 of India's BPO companies by NASSCOM, the leading organization for public policy for the Indian software industry. "American Capital has proved once again to be an outstanding partner for GTCR," said GTCR Principal David Randell. "We highly value their flexibility, commitment to getting the job done and the wide range of expertise they bring to a transaction." For more information about Zenta's unrelenting commitment to quality, go to http://www.acas.com/news/press_releases/pr/pr.cfm?p_pr=pr20050525a.html. ABOUT AMERICAN CAPITAL American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $5.2 billion. American Capital is an investor in and sponsor of management and employee buyouts, invests in private equity buyouts, and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations. As of March 31, 2005, American Capital shareholders have enjoyed a total return of 311% since the Company's IPO -- an annualized return of 21%, assuming reinvestment of dividends. As of March 31, 2005, American Capital has outperformed 99% of all public companies based on annual returns in each of the past 1, 3, 5 and 7 year time periods. American Capital has paid a total of $717 million in dividends and paid or declared $17.51 dividends per share since its August 1997 IPO at $15 per share. Companies interested in learning more about American Capital's flexible financing should contact Mark Opel, Senior Vice President, Business Development, at (800) 248-9340, or visit our website at http://www.americancapital.com/. ABOUT GTCR GOLDER RAUNER LLC Founded in 1980, GTCR Golder Rauner is a leading private equity investment firm and long-term strategic partner for outstanding management teams. GTCR currently manages more than $6 billion of equity capital invested in a wide range of companies and industries. More information can be found at http://www.gtcr.com/. ABOUT H-CUBE LLC Based in Dallas, Texas, H-Cube is a business process outsourcing company focused on acquiring and operating business process and technology-based outsourcing companies. H-Cube's Chief Executive Officer is Henry Hortenstine and H-Cube's Chief Financial Officer is Jeff Culp. More information about H- Cube can be found at http://www.h-cubeinc.com/. Performance data quoted above represents past performance of American Capital. Past performance does not guarantee future results and the investment return and principal value of an investment in American Capital will likely fluctuate. Consequently, an investor's shares, when sold, may be worth more or less than their original cost. Additionally, American Capital's current performance may be lower or higher than the performance data quoted above. This press release contains forward-looking statements. The statements regarding expected results of American Capital Strategies are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional, national or international economic conditions, or changes in the conditions of the industries in which American Capital has made investments. DATASOURCE: American Capital Strategies Ltd. CONTACT: L. Thomas Gregory, Managing Director, +1-312-681-7400, Demian Kircher, Vice President, +1-312-681-7400, or Brian Maney, Director, Corporate Communications, +1-301-951-6122, all of American Capital Strategies Ltd. Web site: http://www.americancapital.com/ http://www.gtcr.com/ http://www.h-cubeinc.com/

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