FOR IMMEDIATE RELEASE:

March 24, 2006

Contact
Jean Eichenlaub, Managing Director, European Capital Services +33 (0)1 40 68 06 66
Simon Henderson, Managing Director, European Capital Services + 44 (0)207 539 7000
Nathalie Faure Beaulieu, Managing Director, European Capital Services + 44 (0)207 539 7000
Brian Maney, Director, Corporate Communications +1 (301) 951-6122

European Capital Invests €121 Million in Buyout and Mezzanine Transactions

Luxembourg - March 14, 2006 - European Capital Limited and its wholly owned subsidiary European Capital, S.A. SICAR ("European Capital") announced today it has invested approximately €121 million ($144 million) in 6 companies year to date, totaling 15 companies since its formation in August 2005. Of the six companies invested in 2006, five are majority owned by private equity sponsors including 3i, Apax Partners, CVC Capital Partners Limited, Electra Partners Europe and Exponent Private Equity.

Two of the investments, totaling €43 million ($51 million), were implemented by the London office of European Capital Financial Services Limited ("European Capital Services"), the sub-investment manager of European Capital. The London office's investments included €19 million in Partners in Lighting International N.V., a European manufacturer of lighting fixtures for consumer and commercial environments, to support CVC Capital Partners' recapitalization, and €24 million in TSL Education Ltd., a provider of classified advertising for job vacancies in UK schools, colleges and universities, to support Exponent Private Equity's acquisition. European Capital Services' Paris office implemented four transactions totaling €78 million ($93 million): €13 million in Poliris, a French online publisher of real estate housing listings for real estate agencies, to support 3i's acquisition; €14 million in Tokheim SAS, a European supplier of retail fuel systems, to support Electra Partners Europe's acquisition; an undisclosed amount in the One Stop Buyout^TM of Action Sport Holding, a distributor of motorcycle and bicycle gear and accessories in France; and €22.5 million in Alma Consulting Group, a French provider of tax recovery and cost reduction services for companies, to support Apax Partners' acquisition.

European Capital has invested €301 million ($359 million) in 15 companies since its formation in August of 2005. For more information about European Capital's portfolio, click here.

"We are delighted with the tremendous progress European Capital has made in the European middle market and excited about the strong pipeline of investment opportunities we have moving forward. Since the start of 2006, the London office has already arranged two mezzanine investments and the Paris office has completed a One Stop Buyout^TM and arranged three mezzanine investments," said Ira Wagner, President of European Capital Services. "European Capital's success results from our ability to provide senior debt, mezzanine debt and equity and complete One Stop Buyouts^TM. In addition, these transactions could not have been executed without our experienced and dedicated team of investment professionals in our European offices, accompanied by the backing of American Capital's corporate infrastructure."

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, Simon Henderson or Nathalie Faure Beaulieu at + 44 (0)207 539 7000 in London, or visit the 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.