FOR IMMEDIATE RELEASE:
February 9, 2007

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

EUROPEAN CAPITAL INVESTS €120 MILLION IN DELSEY

Paris — February 9, 2007 — European Capital S.A. SICAR announced today it has invested €120 million ($156 million) in Delsey, a leading global luggage brand.  European Capital’s investment takes the form of a single tranche unirate bond, meeting the entire debt needs of Argan Capital’s acquisition of Delsey.  Delsey’s management team is investing in Delsey’s equity, alongside Argan Capital.

“The Delsey investment is an outstanding example of both our financing flexibility and our ability to conduct due diligence on a company with both European and North American operations,,” said Ira Wagner, President of European Capital Financial Services Limited ("European Capital Services"), the sub-investment manager of European Capital, and Chief Operating Officer of American Capital Strategies Ltd.  “This is our first unirate transaction at European Capital and perhaps the first transaction of this type in the French mid-market.  This product and our global due diligence capability provided a complete one-stop financing solution for Argan Capital.”

European Capital invested approximately €1.2 billion ($1.6 billion) in 2006 and €432 million ($560 million) in the fourth quarter of 2006 and has invested €191 million ($249 million) in 2007 year to date.  For more information about European Capital’s portfolio, click here.

“We are excited to be investing in Delsey, a strong luggage brand known for quality, resilience and innovative design,” said Jean Eichenlaub, European Capital Managing Director.  “Delsey holds leading market positions in Europe and the U.S. and the number one position in France.  With travel frequency and luggage purchases on the increase worldwide, the luggage market continuously presents growth opportunities for Delsey’s innovative designs.”

”Delsey’s management team has a strong track record in both Europe and the U.S., having developed a lean, outsourced business model, which has generated favorable financial results,” said Etienne Haubold, European Capital Vice President. “We are impressed by how this team has transformed Delsey from a mid-sized industrial company into a dynamic international marketing group.”

Founded in 1946, Delsey designs, markets and distributes luggage in more than 100 countries under four brands: Delsey, its principal brand, and Visa, Selection and Easyline.  Delsey offers a full range of high quality soft and hard-sided travel luggage, with differentiated designs and marketing for the U.S. and Europe.  Delsey’s luggage is sold in specialty stores, department stores and hypermarkets, with customers including Carrefour, Auchan, Casino and Leclerc in France and Macy’s, Bloomingdale’s and Dillard’s in the U.S.  Delsey has European headquarters in Paris and U.S. headquarters in Baltimore, Maryland.  The Company has over 300 employees and recorded approximately €113 million in revenues in 2006.

“European Capital’s solid grasp of the business and ability to quickly arrange a unirate bond made it the partner of choice for this investment.  Its financing package combined the traditional debt and mezzanine facilities into a single facility to cover the entire debt needs for our acquisition of Delsey,” said Karim Ghannam, Argan Capital Principal.  “With European Capital’s support, we could rely on one lender who provided us with a single attractive interest rate on a complete debt financing package.”

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 €400 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 the largest U.S. publicly traded alternative asset manager with $12 billion in capital resources under management.  American Capital, both directly and through its global asset management business, is an investor in management and employee buyouts, private equity buyouts and early stage and mature private and public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations.  American Capital invests from $5 million to $750 million in North America and €5 million to €400 million in Europe.

ABOUT ARGAN CAPITAL

Argan Capital is an independent private equity fund focusing on acquiring and developing European mid-cap companies. With offices in London, Milan, Paris and Warsaw, Argan Capital seeks to acquire companies in the industrial, services and consumer sectors, creating value through active ownership and focus on revenue growth, improvement of core processes, industrial transformation and international development. The Argan Capital team comprises 12 professionals and is led by three Managing Partners: Wojciech Goc, Carlo Mammola and Lloyd Perry. The team has developed a particularly strong presence and portfolio of company investments in Italy, France, the Nordic countries and Central Europe. With financial commitments from large pension funds, insurance companies and fund of funds managers from both the US and Europe, Argan Capital recently announced the closing of its first independent fund, following its spin-out from Bank of America.

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.