FOR IMMEDIATE RELEASE:
November 3, 2006

Contact
Jean Eichenlaub, Managing Director, European Capital Services +33 (0)1 40 68 06 66
Stéphane Legrand, Director, European Capital Services +33 (0)1 40 68 06 66
Brian Maney, Director, Corporate Communications +1 (301) 951-6122

EUROPEAN CAPITAL INVESTS €25 MILLION IN EMPRUNTIS.COM

Paris — November 3, 2006 — European Capital S.A. SICAR announced today it has invested €25 million ($32 million) in Empruntis.com, the leading French online distributor of financial services.  European Capital’s investment takes the form of warranted mezzanine bonds and supports 3i’s buyout of Empruntis.com. Banque Palatine is investing in senior debt.  Empruntis.com’s management maintains majority ownership of the Company.

“We are delighted to be working again with 3i, one of the leading private equity firms in the world, to support its buyout of Empruntis.com,” said Ira Wagner, President of European Capital Financial Services Limited ("European Capital Services"), the sub-investment manager of European Capital.  “Since European Capital’s inception, we have quickly become an excellent choice for financing in support of buyouts and recapitalizations of middle market companies in France, the U.K. and elsewhere in Europe.  Our financial capabilities combined with our outstanding staff at European Capital are producing a growing number of first rate investment opportunities like Empruntis.com.”

European Capital has invested approximately €1.1 billion ($1.4 billion) in the last twelve months, €1 billion ($1.3 billion) year to date and €224 million ($286 million) quarter to date.  For more information about European Capital’s portfolio, click here. 

“Empruntis.com is the number one online broker for mortgage credit in an industry whose growth is being driven by the increasing adoption of the Internet to obtain financial services and the overall growth in the mortgage brokerage market,” said Jean Eichenlaub, European Capital Managing Director.  “Empruntis.com has achieved its sustainable leading market position through the successful mix of a powerful IT platform that enables it to make uniquely real time credit offers; strong partnerships with over 120 major banks and insurers; and efficient business processes.  In addition, Empruntis.com has established a well-known brand and maintains its excellent reputation through the provision of expert service by its highly-trained staff.” 

“Empruntis.com has delivered impressive sales growth, EBITDA margins and cash flow generation,” said Stéphane Legrand, European Capital Director.  “In addition to being number one in the online provision of mortgage credit, Empruntis.com has steadily extended its product line into car insurance, personal loans, motorcycle insurance, health care insurance and tax optimization.  Empruntis.com has more new products already in the pipeline, which will further broaden its revenue streams as well as provide diversification to insulate against market cycles.”      

Empruntis.com was founded in 2000 by Vincent Lemaire, Geoffroy Bragadir and Yann Djenderedjan and has quickly become France’s leading online broker of financial products.  Its website allows consumers seeking a mortgage, personal loan or insurance (car, home or health insurance) to obtain a real-time comparison of a variety of products provided by banks and insurance companies.  Its business model is based on receiving commission from partners according to the amount of new business generated from the Empruntis.com website.  The Company works with over 120 partners, including major banking and insurance institutions, and employs 280 people in its Paris headquarters.

“We are pleased to once again be working with European Capital,” said 3i Director Olivier Le Gall.  “European Capital responded quickly and flexibly to provide appropriate financing for our acquisition of Empruntis.com.”

“The wide experience of European Capital’s team of investment professionals and their understanding of the middle market make it a leading choice among investment partners,” said 3i Director Julien Vagner.  “We look forward to a continuing and growing partnership.”

ABOUT EUROPEAN CAPITAL

European Capital is a buyout and mezzanine fund with capital resources of €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 €200 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 Simon Henderson or Nathalie Faure Beaulieu at + 44 (0)20 7539 7000 in London, 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 $11.5 billion in capital resources under management.   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 from $5 million to $500 million per company.

ABOUT 3i

3i is a FTSE100 company and a world leader in private equity and venture capital.  3i focuses on buyouts, growth capital and venture capital in Europe, the United States and Asia Pacific across most sectors, including financial and internet services.  3i’s portfolio of financial and internet services related investments include: Assiteca Spa, a leading insurance brokerage company; Interhyp, the leading online mortgage broker in Germany; Poliris, a leading French online publisher of real estate housing listings; and Travelex plc, the world's largest foreign exchange specialist.  European Capital supported 3i’s acquisition of Poliris.  

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.

 

This announcement is neither an offer to sell nor a solicitation to buy securities.
This announcement appears as a matter of record only.