FOR IMMEDIATE RELEASE:
30 July 2007

Contact
Robert von Finckenstein, Managing Director, European Capital Services + 49 69 7171 297-0
Brian Maney, Director, Corporate Communications   +1 (301) 951-6122

EUROPEAN CAPITAL’S FRANKFURT OFFICE CLOSES FIRST INVESTMENT,
€10 MILLION IN EURO-DRUCKSERVICE

Frankfurt – 30 July 2007 – ECAS S.a.r.l. ("European Capital"), a wholly-owned subsidiary of European Capital Limited (LSE: ECAS), announced today that it has invested €10 million ($13.8 million) in the mezzanine facility of Euro-Druckservice AG (“EDS”), a leading commercial printer operating in central and eastern Europe. European Capital’s investment represents a significant share of the mezzanine facility arranged by Dresdner Kleinwort and supports the acquisition of EDS by 3i.

“We are investing in a leading commercial printing company that is ideally positioned to service the rapidly growing economies of central and eastern Europe,” 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 Frankfurt office’s first investment since its opening just four months ago.  We are delighted that its first transaction is with 3i, a world leader in private equity with whom we have a successful and widening partnership.”

European Capital has invested €1.9 billion ($2.6 billion) in the last twelve months, €1.1 billion ($1.5 billion) year to date and €141 million ($194 million) quarter to date.  For more information about European Capital’s portfolio, click here.

“While commercial printing in western Europe reflects the region’s overall modest growth, demand for commercial printing in central and eastern European countries is growing strongly, driven by the accelerated expansion of their economies since accession to the European Union,” said Robert von Finckenstein, Managing Director, European Capital Services.  “EDS, having invested in the most up-to-date printing equipment and having established relationships among major international publishers and retailers, commands leading positions in several markets.  In the most competitive of these, EDS has strategically adapted its focus to serve well-known European retail customers to further build market share.  Led by a management team proven in integrating acquisitions, EDS is positioned to further increase output through additional acquisitions and greenfield expansion.”

Founded in 1992, Euro-Druckservice provides a full range of web and sheet fed offset printing services to large publishing houses and retail groups.  The Company prints magazines, newspapers, books, advertising products and labels, among other items.  EDS has customers in the Czech Republic, Poland, Hungary, Germany and Austria.  Its top customers include Oberoesterreichische Rundschau, Burda Verlag Ost Europa, Tesco and Metro Group.  Headquartered in Passau, Germany, EDS has facilities in Passau and Bad Wörishofen, Germany; Poznań and Kraków, Poland; Usti n. Labem and Pilsen, Czech Republic; and Weis, Austria.  EDS employs nearly 1,500 people.

“We are pleased to be partnering again with European Capital and we welcome the firm’s expansion into central Europe with the opening of its Frankfurt office,” said Wolf Wolfsteiner, Director for Central & Eastern European Buyouts at 3i.  “In addition to its extensive financing capabilities, European Capital consistently brings incisive and expert analysis to our collaborations. We look forward to a growing relationship enhanced by its widening presence.”

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.

Companies interested in learning more about European Capital's flexible financing should contact Robert von Finckenstein at +49 (0) 69 71 71 297-0 in Frankfurt, Nathalie Faure Beaulieu or Simon Henderson at + 44 (0)20 7539 7000 in London, Jean Eichenlaub at + 33 (0)1 40 68 06 66 in Paris, or Luis Felipe Castellanos at +(34) 91 745 99 63 in Madrid, or visit the website at www.EuropeanCapital.com.

ABOUT AMERICAN CAPITAL

American Capital Strategies Ltd. (Nasdaq: ACAS), is an affiliate of European Capital and the only alternative asset management company that is a member of the S&P 500.  With $15¹ billion in assets under management, American Capital is the largest U.S. publicly traded private equity firm and one of the largest publicly traded alternative asset managers.  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.

¹ Includes internally and externally managed assets at fair value as of 3/31/07, including our investments in externally managed funds, plus investments at cost through 6/30/07 and less repayments through 6/30/07.

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.