FOR IMMEDIATE RELEASE:

February 28, 2006

Contact
Jean Eichenlaub, Director +33 (0)1 40 68 06 66
Juan Carlos Morales Cortes, Finance Manager, +44 (0)207 539 7000
Brian Maney, Corporate Communications, +1 (301) 951-6122

European Capital Obtains €400 Million Credit Facility

Luxembourg - February 28, 2006 - European Capital, S.A. SICAR ("European Capital") announced today that it has obtained commitments from affiliates of Wachovia Bank, NA and Harris Nesbitt Corp. for a €400 million multi-currency revolving credit facility, denominated in Euros, Pounds Sterling and U.S. Dollars. The ability to make draws under the facility expires in February 2008, unless the facility is extended prior to such date for an additional one or two years. Interest on borrowings under the facility is charged at either the applicable base rate, EURIBOR or LIBOR, plus 110 basis points. The facility is secured by investments made by European Capital and has a variable advance rate. At closing, European Capital borrowed €111 million under the facility to repay intercompany debts to its affiliate, American Capital, associated with the formation of European Capital.

European Capital has invested approximately €300 million ($356 million) in 14 companies since its formation in August of 2005. For more information about European Capital's portfolio, click here.

"We are pleased to announce the establishment of European Capital's first external credit facility, an expression of our lenders' confidence in us and our future," said Malon Wilkus, European Capital Chairman of the Board of Directors. "With this facility, European Capital has one of the lowest costs of capital in the industry, giving us a powerful competitive advantage. Together with our ability to provide senior debt, mezzanine debt and equity and One Stop Buyouts^TM, European Capital is in an excellent position to invest in the very best European companies."

"We are excited about European Capital's new working relationship with Wachovia and Harris Nesbitt, both of whom have been very supportive of American Capital," said Tom McHale, American Capital Senior Vice President, Finance. "We look forward to continuing our long term relationship with them as we meet our capital needs in the most cost effective manner."

ABOUT EUROPEAN CAPITAL
European Capital is a buyout and mezzanine fund with capital resources of €1.1 billion ($1.3 billion). 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 Jean Eichenlaub at + 33 (0)1 40 68 06 66 in Paris, or Nathalie Faure Beaulieu or Simon Henderson at + 44 (0)207 539 7000 in London, or visit our website at www.EuropeanCapital.com.

ABOUT AMERICAN CAPITAL
American Capital Strategies Ltd. (Nasdaq: ACAS) 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 early stage and mature private and small public companies and through its asset management business is a manager of debt and equity investments in private companies and commercial loan obligations. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. American Capital invests up to $300 million per transaction.

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.