FOR IMMEDIATE RELEASE:

December 2, 2005

Contact
Jean Eichenlaub, Managing Director,European Capital Services +33 (0)1 40 68 06 66
Simon Henderson, Managing Director,European Capital Services + 44 20 7539 7000
Nathalie Faure Beaulieu, Managing Director,European Capital Services + 44 20 7539 7000
Brian Maney, Corporate Communications, +1 (301) 951-6122

European Capital Invests €148 Million in Buyout and Mezzanine Transactions

Luxembourg - December 2, 2005 - European Capital Limited and its wholly owned subsidiary European Capital, S.A. SICAR ("European Capital") announced today it has invested approximately €148 million ($173 million) in seven companies since its formation in August of this year. Six of these companies are majority owned by private equity sponsors.

Five of the investments, totaling €84 million ($98 million), were implemented by the London office of European Capital Financial Services Limited ("European Capital Services"), the sub manager of European Capital. European Capital Services' Paris office implemented two transactions totaling €64 million ($75 million): €29 million in the One Stop Buyout of Marco Polo Foods, the leading producer in the European commercial sushi market, and €35 million in Eau Ecarlate, the leading supplier of branded fabric care products to the French retail market, to support Axa Private Equity's buyout.

"We are very pleased to note that since August, the London office has arranged five mezzanine investments and the Paris office has arranged a buyout and mezzanine investment, an excellent beginning to European Capital," said European Capital Services President Ira Wagner. "The start up of European Capital has proceeded better than we had anticipated. The market is receptive to our mezzanine capabilities and our One-Stop Buyouts^TM, our excellent European team is working hard and we anticipate significant new investments by European Capital in the months and years ahead."

"Our Mezzanine division is off to a strong start," said Nathalie Faure Beaulieu, Managing Director. "We are pleased to be working with both distinguished sponsors and arrangers, and look forward to developing a broad range of relationships within the industry."

ABOUT EUROPEAN CAPITAL
European Capital is a buyout and mezzanine fund with capital resources of €750 million. European Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts and provides capital directly to private and mid-sized public companies. European Capital invests from €5 million to €125 million per transaction in equity, mezzanine debt and senior debt to fund growth, acquisitions and recapitalizations.

Companies interested in learning more about European Capital's flexible financing should contact Nathalie Faure Beaulieu, at + 44 20 7539 7020 in London, Simon Henderson at + 44 20 7539 7042 in London, or Jean Eichenlaub at + 33 (0)1 40 68 06 66 in Paris, or visit our website at EuropeanCapital.com.

ABOUT AMERICAN CAPITAL
American Capital Strategies Ltd. (Nasdaq:ACAS), an affiliate of European Capital, is a publicly traded buyout and mezzanine fund with capital resources of approximately $7 billion. American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, provides capital directly to private and small public companies and through its asset management business is a manager of debt and equity investments in private companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.

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.