FOR IMMEDIATE RELEASE:
21 September 2007

Contact
Alex Morey, Director, European Capital Financial Services Ltd. +44 (0)20 7539 7000
Brian Maney, Director, Corporate Communications, American Capital +1 (301) 951-6122

EUROPEAN CAPITAL REFINANCES £31.0 MILLION
IN CREDIT FACILITIES OF MILES 33

St. Peter Port, Guernsey – 21 September 2007 – European Capital Limited (“European Capital”) (LSE: ECAS) announced today that ECAS s.a.r.l, a wholly-owned subsidiary of European Capital, on September 7 completed the refinancing of £31 million (€46 million) in senior secured credit facilities of portfolio company Miles 33 Group Ltd.  Lloyds TSB Bank plc and Bank of Ireland each provided £15m of loan term facilities and Lloyds TSB Bank plc provided an additional £1m revolving credit facility. Following the refinancing, European Capital holds a £28 million (€41 million) investment in Miles 33, consisting of equity, a loan note and mezzanine debt. European Capital completed its original One Stop Buyout™ of Miles 33 on 11 June 2007 investing £57 million (€83 million) alongside the company’s management and previous owner. European Capital has refinanced €504 million of senior loans in eight One-Stop-Buyouts™.

“We continue to be successful in syndicating senior credit facilities in our One Stop Buyouts™, underscoring the strength of our growing portfolio in a time of market uncertainty,” said Simon Henderson, European Capital Managing Director.

Founded in 1976, Miles 33 is a supplier of computer software to the publishing sector, with regional newspapers being its largest customer segment.  Miles 33’s integrated suite of modules supports key functions such as editorial production and workflow, advertising booking (paper and online), customer relationship management and credit management. The company also supplies law firms with practice management and financial software. Miles 33 has an innovative sales model, which has enabled the company to build long standing customer relationships with leading newspaper publishers and to generate strong growth in recurring revenues. Miles 33 is based in Bracknell, Berkshire, UK.

For more information about European Capital’s investment in Miles 33, click here.

ABOUT EUROPEAN CAPITAL

European Capital is a publicly traded investment company for pan-European equity, mezzanine and senior debt investments with capital resources of approximately €2.3 billion ($3.2 billion).  It is managed by European Capital Financial Services (Guernsey) Limited (“ECFSG” or “the Investment Manager”), a wholly-owned affiliate of American Capital Strategies, Ltd (“American Capital”).

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.

The investment objective of European Capital is to provide investors with dividend income and the potential for share value appreciation by investing in debt and equity investments in private and public companies headquartered primarily in Europe. European Capital seeks to achieve this through pursuing the following types of investments:

European Capital One Stop Buyouts™
Through our One Stop Buyouts™, European Capital provides equity, mezzanine debt and senior debt as the lead investor in the buyout of private and public companies.

Mezzanine Direct with Sponsors
European Capital provides debt and equity financing for buyouts sponsored by private equity firms where European Capital is either the sole or lead mezzanine debt investor.

Syndicated Mezzanine and Senior Debt
European Capital provides mezzanine and senior financing for buyouts sponsored by private equity firms where European Capital is neither the sole nor lead mezzanine or senior debt investor.

Direct Investments
European Capital provides debt and equity financing directly to private and public companies, which is used for growth, acquisitions or recapitalisations, and investing in structured finance vehicles.

Companies interested in learning more about European Capital's flexible financing should contact Simon Henderson or Nathalie Faure Beaulieu at + 44 (0)20 7539 7000 in London, Jean Eichenlaub at + 33 (0)1 40 68 06 66 in Paris, Robert von Finckenstein at +49 (0) 69 71 71 297-0 in Frankfurt, 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), with $17 billion in assets under management¹, is an affiliate of European Capital and a member of the S&P 500.  It is the largest U.S. publicly traded private equity fund 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 American Capital Strategies 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 American Capital has made investments.