ACAS American Capital, Ltd.

American Capital Invests $53 Million in Portfolio Company Stravina BETHESDA, Md., June 9 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. (NASDAQ:ACAS) announced today it has invested an additional $53 million in its portfolio company Stravina Operating Company LLC, purchasing the senior debt of Stravina, committing to a senior term loan and providing a revolving credit facility. Stravina is a leading designer and supplier of impulse-purchase novelty and souvenir items. Blue Capital Management LLC is the majority owner and equity sponsor of Stravina. "We're looking forward to continuing our relationship with Stravina," said American Capital Managing Director Gordon O'Brien. "We are in a good position to leverage our well-established relationship with Stravina's management team and Blue Capital." American Capital has invested over $2.6 billion in the last twelve months, over $950 million year to date and $540 million quarter to date. For more information about American Capital's portfolio, go to http://www.acas.com/our_portfolio/our_portfolio.cfm. "Stravina is the largest supplier of personalized novelty items and one of the largest suppliers of non-apparel souvenir items in North America," said American Capital Principal Steven Price. "Stravina's sales and long-term growth prospects are supported by its excellent underlying demographics for its target market, its active product innovation programs and excellent relationships with its suppliers. Furthermore, Stravina's low price, impulse purchase products help it withstand economic downturns." American Capital first invested in Stravina in May 2002, supporting Blue Capital Management LLC's acquisition with a $19.5 million investment. In August 2003, American Capital invested an additional $7.5 million supporting the Company's acquisition of Hanover Accessories, a designer and marketer of children's jewelry and hair accessories, pet accessories and novelty products. Hanover also operates CRS/Lawrence, a company offering in-store merchandising services for major retailers and manufacturers in over 14,000 retail stores across the country. Stravina, headquartered in Chatsworth, CA, has over 100 product lines, including personalized key chains, photo frames, pens, pencils, rulers, Post- It notes, as well as souvenir products including magnets, shot glasses and plush toys. The Company sells to mass merchants, gift stores, party and craft stores, toy stores, drug stores and grocery stores. The Company also sells to five of the top ten retailers in the U.S. "Since 2002, American Capital has supported Stravina, providing us with the financial resources necessary to build our company. Their long-term commitment, indepth understanding of our business and their valuable industry experience make them the right investment partner for Stravina as we move forward," said Stravina President and CEO Sheldon Morick. For more information about Stravina's personalized products, go to http://www.acas.com/our_portfolio/companies/company.cfm?p_comp=59 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 May 31, 2005, American Capital shareholders have enjoyed a total return of 364% since the Company's IPO -- an annualized return of 22%, assuming reinvestment of dividends. American Capital outperformed 86%, 78%, 93% and 98% of all public companies in the 1-year, 3-years, 5-years and the approximately 7-1/2 years since our IPO, in each case ending May 31, 2005. 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/. 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: Gordon O'Brien, Managing Director, Operations, Steven Price, Principal, Operations, or Brian Maney, Director, Corporate Communications, all of American Capital Strategies Ltd., +1-301-951-6122 Web site: http://www.americancapital.com/

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