FOR IMMEDIATE RELEASE:

September 1, 2006

Contact
Tom McHale, Senior Vice President, Finance +1 (301) 951-6122
Juan Carlos Morales Cortes, Finance Director +44 (0) 207 539 7000
Brian Maney, Corporate Communications, +1 (301) 951-6122

European Capital Credit Facility Increased to €900 Million

Luxembourg – September 1, 2006 - European Capital Limited and its subsidiaries, European Capital S.A. SICAR and ECAS S.à.r.l (collectively, "European Capital") announced today an increase under its multi-currency revolving credit facility, denominated in Euros, Pounds Sterling and U.S. Dollars, from €400 million ($513 million) to €900 million ($1.2 billion).  Wachovia Securities International Ltd. is the lead arranger and sole bookrunner of the facility.  The lenders in European Capital's revolving credit facility are Wachovia Bank, N.A., London Branch, Bank of Montreal Ireland p.l.c., Citibank, N.A., London Branch, Alpine Securitization Corp., an affiliate of Credit Suisse, JP Morgan Chase Bank, N.A., London Branch and its affiliate Chariot Funding LLC.  European Capital may request advances under the facility until August 2008 or through a later date if the facility is extended.  Advances will incur interest at the applicable interest base rate for each currency plus 110 basis points.  The facility is secured by certain debt investments made by European Capital and has a variable advance rate. 

“This increase in European Capital’s credit facility provides additional capital availability to meet the demands of its robust pipeline of investment opportunities and also establishes new relationships with several premier financial institutions,” said Tom McHale, American Capital Senior Vice President, Finance.  “The expansion also confirms the quality of the European Capital team and the portfolio, which consists of 29 leading European middle market companies.”

“American Capital’s longstanding relationships with financial institutions and capital markets expertise have provided European Capital with financial resources typically not available to new funds or managers,” said John Hooker, American Capital Vice President, Debt Capital Markets.  “European Capital is enjoying similar access to attractively priced and flexible capital as American Capital, which is a great competitive advantage.”

European Capital has invested approximately €901 million ($1.2 billion) in 29 companies since its formation in August of 2005 and €724 million ($929 million) in 21 companies in 2006.  For more information about European Capital's portfolio, click here.

ABOUT EUROPEAN CAPITAL

European Capital is a buyout and mezzanine fund with capital resources of approximately €1.7 billion ($2.2 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 generally invests from €5 million to €125 million per company in equity, mezzanine debt, senior debt and convertible bonds to fund growth, acquisitions and recapitalizations.

Companies interested in learning more about European Capital's flexible financing should contact Nathalie Faure Beaulieu or Simon Henderson at + 44 (0)20 7539 7000 in London, or Jean Eichenlaub at + 33 (0)1 40 68 06 66 in Paris or visit the website at www.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 $8.9 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.   American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations.   American Capital invests up to $350 million per company.

This press release contains forward-looking statements. The statements regarding expected results of European Capital and/or American Capital 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 European Capital and/or American Capital has made investments.