ACAS American Capital, Ltd.

American Capital Closes New $70 Million Secured Credit Facility BETHESDA, Md., March 29 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. announced today that is has closed a $70 million secured credit facility. Branch Banking and Trust Company, a subsidiary of BB&T Corporation , is the agent and lead lender in the facility. LaSalle Bank N.A., a subsidiary of ABN AMRO NV , Fifth Third Bank, a subsidiary of Fifth Third Bancorp , and Hibernia National Bank, a subsidiary of Hibernia Corporation , are also lenders in the facility. The facility has a three year commitment with a one year revolving term and is priced at LIBOR plus 200 basis points. The facility is secured by certain senior and subordinated debt assets of American Capital and has an advance rate of 80%, subject to certain customary conditions. "This new facility provides additional capital availability and is a great new relationship with several outstanding institutions," said American Capital Chief Financial Officer John Erickson. "Once again, we have had third party underwriting and scrutiny of our portfolio of assets. The support of these lenders is a confirmation of the quality of our portfolio." Through 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 $2.7 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 andsmall 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/. 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: John Erickson, Chief Financial Officer, +1-301-951-6122, or Tom McHale, Vice President, Finance and Investor Relations, +1-301-951-6122, both of American Capital Strategies Ltd. Web site: http://www.americancapital.com/

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