ACAS American Capital, Ltd.

American Capital Prices $62.4 Million Equity Offering BETHESDA, Md., Feb. 25 /PRNewswire-FirstCall/ -- American Capital Strategies, Ltd. announced today that the company has priced an offering of 1.89 million shares of common stock to the public at$33.04 per share for total gross proceeds of approximately $62.4 million. UBS Securities LLC was the sole book-running manager for the offering. Friedman, Billings, Ramsey & Co., Inc. and RBC Capital Markets Corporation acted as co-managers of the offering. American Capital has granted the underwriters an option to purchase an additional 283,500 shares with a public offering price of $33.04 to cover over-allotments. Substantially all of the net proceeds of the offering will be applied to reduce the borrowings under American Capital's existing revolving credit facility. This will create availability under this facility, which will generally be available for funding future American Capital investments. As of January 31, 2004, American Capital shareholders have enjoyed a total return of 273% since the Company's IPO -- an annualized return of 23%, assuming reinvestment of dividends. American Capital has declared a total of $13.82 per share in dividends since its August 1997 IPO. American Capital is a publicly traded buyout and mezzanine fund with capital resources in excess of $2.5 billion. American Capital is an investor in and sponsor of management and employee buyouts; invests in private equity sponsored 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. Companies interested in learning more about American Capital's flexible financing shouldcontact Mark Opel, Principal, at (800) 248-9340, or visit our website at http://www.americancapital.com/. This press release is neither an offer to sell nor a solicitation of an offer to buy shares of common stock. The offering of these securities will be made only by means of a prospectus. Copies of the prospectus may be obtained from UBS Securities LLC, ECMG Syndicate, 299 Park Avenue, New York, New York 10171. 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 or national economic conditions, and changes in the conditions of the industries in which American Capital has made investments. DATASOURCE: American Capital Strategies, Ltd. CONTACT: Tom McHale, Vice President, Finance & Investor Relations of American Capital Strategies, Ltd., +1-301-951-6122 Web site: http://www.americancapital.com/

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