NEWS

Malon Wilkus, Chairman, CEO (301) 951-6122
Adam Blumenthal, President, COO (212) 213-2009
John Erickson, CFO (301) 951-6122

Bethesda, MD -- American Capital Strategies, Ltd. (Nasdaq:ACAS), a buyout and mezzanine fund, announced today that O2 Wireless Solutions, Inc., formerly Clear Holdings, Inc., one of American Capital's portfolio companies, has filed a registration statement with the Securities and Exchange Commission with regard to an initial public offering of its common stock. American Capital has provided $17.5 million of mezzanine capital to O2 Wireless' subsidiary, Clear Communications Group, including $4.5 million in unfunded commitments, and owns warrants to purchase approximately 11.5% of O2 Wireless' existing common stock, on a fully diluted basis.

American Capital is a publicly traded buyout and mezzanine fund. American Capital is an equity partner in management and employee buyouts; invests in debt and equity of companies led by private equity firms, and provides capital directly to private and small public companies. American Capital funds growth, acquisitions and recapitalizations.

Companies interested in learning more about American Capital's flexible financing and ability to provide senior debt, subordinated debt and equity should contact Mark Opel, Principal, at (800) 248-9340, or visit our website.

Capital.com, Inc., a portfolio company of American Capital Strategies, Ltd. (Nasdaq:ACAS), is a business finance portal where premier financing sources compete to provide receivable and inventory financing, machinery and equipment loans and leasing, real estate and construction financing, subordinated debt and equity financing for growth, acquisitions, management buyouts, liquidity, recapitalizations, ESOP transactions and SBA loans. Companies in need of financing or information about financial services should contact Capital.com at info@Capital.com, or call Harry Kelly, vice president, at (646) 935-1100.

This announcement is neither an offer to sell nor a solicitation of offers to buy securities. Such an offer or solicitation may be made by prospectus only.

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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 or national economic conditions, or changes in the conditions of the industries in which American Capital has made investments.