ACAS American Capital, Ltd.

BETHESDA, Md., July 19 /PRNewswire-FirstCall/ -- American Capital Strategies, Ltd. ("American Capital" or the "Company") (NASDAQ:ACAS) announced today that it has closed its public offering of $550 million of senior unsecured notes (the "notes"). The notes bear interest at a fixed rate of 6.85% and mature in 2012. The notes are senior unsecured debt securities of American Capital and rank equally in right of payment with all of American Capital's other outstanding senior unsecured obligations. Moody's Investors Services, Standard & Poor's and Fitch Ratings rated the notes Baa2, BBB and BBB, respectively. J.P. Morgan Securities Inc. and Banc of America Securities LLC were the joint book-running managers. Bear, Stearns & Co. Inc. and HSBC Securities (USA) Inc. were co-managers. The offering closed on Thursday, July 19, 2007. The offering was made under American Capital's existing shelf registration statement filed with and declared effective by the Securities and Exchange Commission. American Capital expects to use substantially all of the net proceeds from the sale of its notes to reduce the borrowings under American Capital's existing revolving credit facilities and to fund investments. Reducing borrowings under the revolving credit facilities will create availability under these facilities, which will generally be used for funding future American Capital investments and general corporate purposes. This press release is neither an offer to sell nor a solicitation of an offer to buy the notes in this offering nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The offering of these notes may be made only by means of a prospectus and a related prospectus supplement, copies of which may be obtained from J.P. Morgan Securities Inc., 270 Park Avenue, New York, NY 10017 or Banc of America Securities LLC, Prospectus Department, 100 West 33rd Street, 3rd Floor, New York, NY 10001. ABOUT AMERICAN CAPITAL American Capital is the only alternative asset management company that is a member of the S&P 500. With $15 billion(1) in assets under management, American Capital is the largest U.S. publicly traded private equity fund and one of the largest publicly traded alternative asset managers. American Capital, both directly and through its global asset management business, is an investor in management and employee buyouts, private equity buyouts, and early stage and mature private and public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. American Capital and its affiliates invest from $5 million to $800 million per company in North America and euro 5 million to euro 500 million per company in Europe. This press release contains forward-looking statements. The statements regarding expected results of American Capital 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. (1) Includes internally and externally managed assets at fair value as of 3/31/07, including our investments in externally managed funds, plus investments at cost through 6/30/07 and less repayments through 6/30/07. DATASOURCE: American Capital Strategies Ltd. CONTACT: Tom McHale, Senior Vice President, Finance, +1-301-951-6122, or John Hooker, Vice President, Debt Capital Markets, +1-301-951-6122, both of American Capital Strategies Ltd. Web site: http://www.americancapital.com/

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