ACAS American Capital, Ltd.

BETHESDA, Md., Dec. 29 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. (NASDAQ:ACAS) announced today it has invested $81 million in the BBB-, BB+, BB, BB-, B+, B, B- and non-rated tranches of J.P. Morgan Chase Commercial Mortgage 2005-LDP5 (2005-LDP5), a $4.2 billion commercial mortgage backed security trust (CMBS), the largest completed in 2005. This represents a 41% discount to the $136 million face value of these tranches. The CMBS is a pool of 195 commercial mortgage loans sold by JPMorgan Chase Bank, N.A., Eurohypo AG, Nomura Credit and Capital, Inc., PNC Bank, N.A., IXIS Real Estate Capital, Inc. and AIG Mortgage Capital, LLC. The portfolio is composed of 195 loans secured by first liens on 313 commercial and multifamily properties. "This is American Capital's first investment in the securitization of commercial mortgages of private companies and the first transaction completed by our Commercial Mortgage Asset Management Group, headed by Doug Cooper," said American Capital Chairman, President and CEO Malon Wilkus. "We entered the commercial mortgage arena after considerable due diligence and market research and after bringing aboard one of the leading investors in the industry. We are applying American Capital's considerable experience in asset backed securities to the commercial mortgage sector where we expect to earn current cash returns on investments in a highly granular pool of commercial mortgage assets." American Capital has invested approximately $3.2 billion year to date and $1 billion quarter to date. These amounts do not include American Capital's unfunded equity commitment to its affiliate European Capital. For more information about American Capital's portfolio, go to: http://www.acas.com/our_portfolio/our_portfolio.cfm. "American Capital believes it is entering the CMBS market at an excellent time," said Doug Cooper, American Capital Managing Director. "CMBS delinquency rates have been steadily decreasing over the past several years, in part due to better property markets and in part due to greater sophistication and more active management on the part of investors and loan servicers. This particular investment is characterized by a high degree of granularity within cross- collateralized pools of loans along with a broad diversification of geography, property type and loan size." The tranches and corresponding face values in which American Capital has invested are rated by Fitch and S&P as follows: TRANCHE RATING FACE VALUE (000) K BBB- $5,000 L BB+ $26,232 M BB $15,739 N BB- $15,738 O B+ $5,247 P B $5,246 Q B- $10,493 Non-Rated Non-Rated $52,463 Average loan balance for 2005-LDP5 is $21.5 million while average balance per mortgaged property is $13.4 million. Mr. Cooper joined American Capital in October 2005 from CWCapital LLC, where he was Managing Director in charge of its Washington, DC office. CWCapital oversaw the May, 2005 acquisition of Allied Capital's CMBS and CDO portfolio by the Caisse de Depot en placement de Quebec. Mr. Cooper has spent his career in the commercial real estate mortgage business, including nine years of direct CMBS due diligence and surveillance experience and has been involved in the investment decisions of over 60 CMBS transactions totaling over $100 billion in underlying loans. ABOUT AMERICAN CAPITAL American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $7 billion. American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, provides capital directly to private and small public companies and through its asset management business is a manager of debt and equity investments in private companies and commercial loan obligations. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. As of November 30, 2005, American Capital shareholders have enjoyed a total return of 431% since the Company's IPO -- an annualized return of 22%, assuming reinvestment of dividends. American Capital has paid a total of $868 million in dividends and paid or declared $19.08 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. 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: Douglas Cooper, Managing Director, Commercial Mortgage Asset Management Group, or Brian Maney, Director, Corporate Communications, both of American Capital Strategies Ltd., +1-301-951-6122 Web site: http://www.americancapital.com/

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