FOR IMMEDIATE RELEASE:
20 June 2007

Contact
John Erickson, Chief Financial Officer, American Capital +1 (301) 951-6122
Tom McHale, Senior Vice President, Finance, American Capital +1 (301) 951-6122

EUROPEAN CAPITAL DECLARES Q2 DIVIDEND OF €0.10 PER ORDINARY SHARE;
INCREASES 2007 DIVIDEND TARGET TO €0.37 PER ORDINARY SHARE

St. Peter Port, Guernsey – 20 June 2007 – European Capital Limited (“European Capital”) (LSE: ECAS) announced today that its Board of Directors has declared an interim dividend of €0.10 per ordinary share in respect of the second quarter of 2007.  The dividend is payable on 27 July 2007 to holders of ordinary shares on the register at 4:30pm on 29 June 2007.  The dividend is European Capital’s first since it listed on the London Stock Exchange on 10 May 2007.

European Capital is also targeting third quarter and fourth quarter interim dividends for 2007 of €0.13 and €0.14 per ordinary share, respectively, for a targeted total 2007 dividend following European Capital’s initial public offering of €0.37 per ordinary share.  The 2007 targeted total dividend of €0.37 per ordinary share is a €0.10 per ordinary share increase over European Capital’s previous target.

“European Capital continues to make excellent progress following its initial public offering in May.  The change in our dividend target for the year and increase in dividends is a testament to European Capital’s success,” said Ira Wagner, President of European Capital Financial Services Limited, the sub-investment manager of European Capital, and Chief Operating Officer of American Capital Strategies, Ltd.

European Capital is managed by European Capital Financial Services (Guernsey) Limited (the "Investment Manager"), a wholly-owned subsidiary of American Capital Strategies, Ltd. ("American Capital"). American Capital is a leading US based investor in equity, mezzanine and senior debt securities and is also the majority owner of European Capital.

This press release is neither an offer to sell nor a solicitation of an offer to buy European Capital ordinary shares.

ABOUT EUROPEAN CAPITAL

European Capital is a closed-end investment company for pan-European equity, mezzanine and senior debt investments with capital resources of approximately €2.1 billion ($2.9 billion).  European Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts and provides capital directly to private and public companies headquartered predominantly in Europe.  European Capital generally invests between €5 million and €500 million per transaction in equity, mezzanine debt and senior debt to fund growth, acquisitions and recapitalizations.

ABOUT AMERICAN CAPITAL

American Capital Strategies Ltd. (Nasdaq: ACAS), an affiliate of European Capital, is the second largest U.S. publicly traded alternative asset manager with $12 billion in assets under management (second to Fortress (NYSE: FIG)).  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 and its affiliates invest from $5 million to $800 million per company in North America and €5 million to €500 million per company in Europe.

This announcement contains forward-looking statements. Statements regarding expected results of European 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 has made investments.