ACAS American Capital, Ltd.

American Capital Invests $56 Million in Buyout of Unwired Technology BETHESDA, Md., June 9 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. (NASDAQ:ACAS) announced today it has invested $56 million in the buyout of Unwired Technology LLC, a leading designer, marketer and supplier of wireless headphones for automotive entertainment systems. American Capital's investment takes the form of a senior term loan, senior subordinated debt, junior subordinated debt and equity. American Capital is also providing a revolving credit facility and committing to a senior term loan. Unwired founder, President and CEO Lawrence Richenstein is rolling over a portion of his equity and will retain a significant ownership interest and continue to manage the Company. Post close, American Capital owns approximately 57% of Unwired on a fully diluted basis. "With our investment in Unwired Technology, we add a leader in high-tech consumer products to our growing portfolio of 130 diverse middle market companies. Unwired's unmatched market share, low fixed cost structure and strong cash flows make it a compelling investment opportunity," said American Capital COO Ira Wagner. "American Capital's in-house due diligence team, experience in the consumer products industry and one-stop financing capability set us apart in this investment." 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. "Unwired Technology is the technology leader of wireless headphones and components for automotive entertainment systems and the premier global supplier of wireless headphones systems to the automotive OEM market and aftermarket. The Company has developed strong and diversified customer relationships and serves every major supplier of entertainment systems in the automotive OEM market and aftermarket," said American Capital Principal Ian Larkin. "Unwired has built its reputation on innovative technology, research and development efforts, high quality products and outstanding customer service. Its reputation and pursuit of leading technology place it in an excellent position for advancement as the market experiences a proliferation of audio sources for automotive vehicles." "We are pleased to support the growth of Unwired Technology, a market leader on the forefront of technological advancement and increasing demand in a growing industry," said American Capital Vice President Jon Leiman. "Unwired is the benchmark for all suppliers of wireless headphones. Its strong brand identity, reputation for quality and service and leading technology have everyone else playing catch-up. We're looking forward to working with President and CEO Larry Richenstein, a market visionary who has led the Company since inception." Founded in 1997, Plainview, NY-headquartered Unwired was the first to adapt wireless headphone technology for in-vehicle use and the first to introduce two source headphone systems. The Company offers a complete line of single and multi-source analog wireless systems, including infrared headphones and transmitters. These wireless systems are used for entertainment and information applications in vehicles, including video game, DVD, CD, satellite radio and television, voice-based navigation and MP3 player systems. In 2003, the Company began producing a new headphone system with a new proprietary digital technology called WhiteFire(R), the only four source digital system available. WhiteFire(R) was recognized by the Consumer Electronics Association as a Consumer Electronics Show Innovation Awards Honoree. The Company's list of customers includes all of the premier suppliers to both the automotive OEM market and aftermarket. "American Capital's responsiveness, flexibility and financing capabilities make them the right financial partner for Unwired's continued growth and development," said Unwired President and CEO Lawrence Richenstein. "We're looking forward to a long and productive working relationship with American Capital." For more information about Unwired's full line of top quality, technologically leading wireless headphones, go to http://www.acas.com/news/press_releases/pr/pr.cfm?p_pr=pr20050609-1a.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 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: Ian Larkin, Principal, +1-312-681-7400, or Jon Leiman, 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/

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