ACAS American Capital, Ltd.

BETHESDA, Md., Aug. 1 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. (NASDAQ:ACAS) announced today that since the beginning of 2007 it has syndicated over $1 billion in credit facilities for 10 portfolio companies. These credit facilities were syndicated to approximately 120 institutions and included transactions such as SMG, Appleseed's Brands, WIS International and TestAmerica-STL. SMG On July 31, 2007, American Capital completed the syndication of $277.5 million in first lien credit facilities consisting of revolving credit and first lien term loan facilities for its portfolio company SMG, the leading provider of entertainment and conference venue management services worldwide. On June 14, 2007 American Capital and an affiliate invested $631 million in the One Stop Buyout(TM) of SMG. American Capital's investment took the form of a revolving credit facility, first lien term loan, senior subordinated debt, holding company PIK notes and convertible preferred and common equity. American Capital Equity Fund I LLC ("ACE"), a fund managed by American Capital, provided 30% of the American Capital equity investment. Founded in 1977, SMG currently manages approximately 200 venues, including arenas, stadiums, convention centers, exhibition halls, trade centers, theaters and performing arts centers. The Company's facilities are primarily located throughout the U.S., with international facilities in the U.K., Germany, Ireland, Canada, Puerto Rico, Mexico, Norway and the U.A.E. SMG managed venues include Oracle Arena in Oakland, CA , Reliant Stadium in Houston, TX, the Moscone Center in San Francisco, CA, the Long Beach Convention Center in Long Beach, CA, the Manchester Evening News Arena in Manchester, U.K., and the Konig-Pilsener Arena in Oberhausen, Germany. SMG is headquartered in Philadelphia and has over 34,000 employees worldwide. For more information on American Capital's investment in SMG, go to http://www.acas.com/news/newsreleases/2007/pr20070625.html. Appleseed's Brands On July 13, 2007, American Capital and UBS Securities LLC closed the syndication of the $460 million first lien credit facility consisting of a revolving credit facility and first lien term loan for American Capital portfolio company Appleseed's Brands, the largest direct marketer of private label apparel for men and women aged 55 and over in the U.S. On April 30, 2007 American Capital and UBS Securities together underwrote a $710 million committed financing package to support Appleseed's recent acquisitions and the refinancing of existing debt. American Capital served as Joint Lead Arranger and Administrative Agent for the facilities and closed on $480 million of debt consisting of revolving credit and first lien term loan facilities as well as a second lien term loan and junior notes. UBS served as Joint Lead Arranger and closed on $230 million of first lien credit facilities. Golden Gate Capital is the equity sponsor. Appleseed's Brands, the largest direct marketer of private label apparel for men and women aged 55 and over in the U.S., was formed in 2005 when Golden Gate Capital bought Johnny Appleseed's and The TOG Shop. During 2005, the Company also purchased Draper's and Damon's and then acquired Norm Thompson Outfitters and Haband the following year. Appleseed's manages eight catalogs, each targeting a distinct profile of mature women and together providing merchandise across the entire price-point spectrum. Appleseed's uses a combination of catalogues, letter mailings and the Internet for direct marketing. The Company is headquartered in Beverly, MA. For more information on American Capital's investment in Appleseed's Brands, go to http://www.acas.com/news/newsreleases/2007/pr20070727.html. WIS International On May 18, 2007, American Capital completed the syndication of $164 million in first lien credit facilities consisting of revolving credit and first lien term loan facilities for its portfolio company WIS International, a leading global provider of outsourced inventory management services. On January 18, 2007, American Capital and ACE invested $411 million in the One Stop Buyout(TM) of WIS International. American Capital's investment took the form of revolving credit and first lien term loan facilities, senior subordinated debt, holding company PIK notes and common and redeemable preferred equity. ACE provided 30% of the American Capital equity investment. WIS International was founded in 1967. The Company's core business is to provide the systems, technology and staff for third-party inventory verification services. WIS has U.S. headquarters in San Diego, CA and Canadian headquarters in Toronto, Ontario. The Company has over 200 offices across the U.S., Canada and internationally with operations based in the U.K., China, Japan, Mexico, Brazil and Argentina. Annually WIS provides over 135,000 counts or approximately 370 counts per day for retail clients such as Wal-Mart, Home Depot, Rite Aid, Lowe's, Walgreen's and Dollar General. For more information on American Capital investment in WIS, go to http://www.acas.com/news/newsreleases/2007/pr20070123-1.html. TestAmerica-STL On March 19, 2007, American Capital completed the syndication of $155 million in first lien credit facilities consisting of revolving credit and first lien term loan facilities for its portfolio company TestAmerica-STL, the second largest operator of environmental testing laboratories in the United States. On December 29, 2006, American Capital and ACE invested $255 million in TestAmerica Holdings Inc., supporting TestAmerica's combination with Severn Trent Laboratories (STL), a division of Severn Trent plc and the largest operator of environmental testing laboratories in the United States. American Capital's one stop financing took the form of revolving credit and first lien term loan facilities, senior subordinated debt and preferred equity. ACE provided 30% of the American Capital equity investment. H.I.G. Capital LLC is the majority owner of TestAmerica-STL. TestAmerica-STL provides a full spectrum of environmental testing services, including the complete range of analyses of soil, water waste and air samples for trace levels of organic, inorganic and metal contaminants; and air quality and emissions testing, including analyses of mold, food microbiology and allergens. The Company also develops and supplies sampling and remediation pumping systems for landfills and ground water contamination sites and other environmental testing products. TestAmerica-STL serves its customer base of over 12,000 clients, including major industrial companies, engineering and consulting firms and government entities, through over 100 laboratories and service centers in the United States. For more information on American Capital's investment in TestAmerica-STL, go to http://www.acas.com/news/newsreleases/2007/pr20070125-1.html. ABOUT AMERICAN CAPITAL American Capital is the only alternative asset management company that is a member of the S&P 500. With $16 billion in assets under management(1), 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 ?5 million to ?500 million per company in Europe. As of June 30, 2007, American Capital shareholders have enjoyed a total return of 578% since the Company's IPO -- an annualized return of 22%, assuming reinvestment of dividends. American Capital has paid a total of $1.7 billion in dividends and paid or declared $25.16 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 http://www.americancapital.com/ or http://www.europeancapital.com/. (1) Includes American Capital's investment in externally managed funds. 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: Tom McHale, Senior Vice President, Finance of American Capital Strategies Ltd., +1-301-951-6122 Web site: http://www.americancapital.com/

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