ACAS American Capital, Ltd.

American Capital Invests $27 Million in T-NETIX BETHESDA, Md., March 10 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. announced today it has invested $27 million to support the acquisition of T-NETIX Inc., a leading provider of telecommunications products and services to correctional facilities. American Capital's investment takes the form of senior and junior subordinated debt and common equity, and supports the acquisition of T-NETIX by H.I.G. Capital in a going private transaction. Dymas Capital Management provided a revolving credit facility and senior term loans. "We are seeing overall deal volume in the M&A market increasing along with more opportunities to invest with private equity firms," said American Capital COO Ira Wagner. "American Capital's underwriting discipline, transactional flexibility and access to capital position us to capitalize on the opportunities of a robust market. Consistent with that, our investment with H.I.G. Capital is our 10th new sponsor relationship in the last twelve months." American Capital has invested approximately $1.1 billion in the last twelve months and over $100 million year to date. For more information about American Capital's portfolio go to http://www.americancapital.com/our_portfolio/our_portfolio.cfm. "American Capital is backing an exciting company with a strong and experienced management team," said American Capital Managing Director Darin Winn. "The T-NETIX client base is significantly comprised of long term relationships who value stability, resulting in a recurring revenue stream. The company's products and services are patented and copyrighted, providing a strong market position." T-NETIX, founded in 1986 and headquartered outside of Dallas, TX, provides telecommunications products and services to more than 350 local, county and state public correctional facilities in the U.S. and Canada. Products and services provided to correctional facilities include prison telecommunications equipment and software, security-enhanced call processing, call validation and billing. The company processes over 10 million phone calls per month, employs over 370 people in 35 states and has grown sales by nearly 13% over the past three years. "American Capital is a flexible, creative organization," said H.I.G. Managing Director Brian Schwartz. "Their knowledge of the market, attention to detail and rapid decision making were critical to the transaction." For more information about T-NETIX, go to http://www.acas.com/news/press_releases/pr/pr.cfm?p_pr=pr20040310a.html As of February 29, 2004, American Capital shareholders have enjoyed a total return of 287% 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 should contact Mark Opel, Principal, at (800) 248-9340, or visit our website at http://www.americancapital.com/. H.I.G. Capital, a private equity firm with more than $1 billion of equity capital under management, is currently a significant investor in over forty companies with combined annual revenues in excess of $4 billion in a diverse range of industries. Portfolio companies include Plastic Fabricating Company, a leading supplier of custom parts fabricated from high strength lightweight plastics, composites and metal bonded structures; Abacus Software, a temporary staffing information technology services firm that provides highly skilled IT professionals to Fortune 500 corporations throughout the United States; and TestAmerica, one of the country's largest providers of outsourced environmental testing services to major industrial companies, engineering and consulting firms, and government agencies. 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, or changes in the conditions of the industries in which American Capital has made investments. DATASOURCE: American Capital Strategies Ltd. CONTACT: Darin Winn, Principal and Managing Director, +1-214-273-6650 or Brian Maney, Director, Corporate Communications, +1-301-951-6122, both of American Capital Strategies Ltd. Web site: http://www.americancapital.com/

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