NEWS

John Erickson, CFO (301) 951-6122
Brian Maney, Director, Corporate Communications (301) 951-6122

Bethesda, MD - May 24, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today that it and a wholly-owned affiliate of American Capital have been repaid its $15 million senior subordinated debt investment in Bumble Bee Seafoods L.P. and received a distribution related to its limited partnership investment in Bumble Bee. American Capital and its affiliate realized a gain of $1.2 million on the repayment of the debt and on the distribution related to its equity investment. American Capital and its affiliate earned a 33% return, including the payment of all interest and fees received over the life of the investment. American Capital received the repayment and distribution in connection with the merger of Bumble Bee's U.S. and Canadian operating subsidiaries with Connors Bros. Income Fund, a Canadian open-ended limited purpose trust. The transaction created North America's largest branded seafood company. Connors Bros. owns an approximate 68% interest and Bumble Bee owns an approximate 32% interest in the combined business. Bumble Bee can exchange its interest in the combined business' operating subsidiaries for either cash or units in Connors Bros. after a specified period of time. American Capital, through its affiliate, retains its limited partnership interest in Bumble Bee, representing a less than 1% diluted ownership interest in the combined business.

In May 2003, American Capital and its affiliate invested $15 million of senior subordinated debt with limited partnership interests in Bumble Bee, a leading global producer and marketer of canned tuna and other seafood and the leader in the premium albacore tuna market. American Capital's investment supported the acquisition of the assets and operations of Bumble Bee from ConAgra Foods Inc. by management and affiliates of Centre Partners Management LLC.

For more information about the Bumble Bee transaction click here.

Since its August 1997 IPO through the first quarter of 2004, American Capital has earned a 14% compounded annual return on 60 exits and prepayments of senior debt, subordinated debt and equity, totaling $713 million of invested capital, including interest payments, dividends, fees and net realized gains and losses on these investments. These exits and prepayments represent 25% of all amounts invested by American Capital since its August 1997 IPO. Thirty-one percent of these exits and prepayments were from portfolio companies that had at one time been either a loan grade 1 or 2 in its four point loan grading system, with 1 being the lowest loan grade.

For a chart detailing American Capital capital gains and losses click here.

For a chart listing American Capital's exited portfolio companies click here.

As of April 30, 2004, American Capital shareholders have enjoyed a total return of 213% since the Company's IPO - an annualized return of 19%, assuming reinvestment of dividends. American Capital has declared a total of $14.52 per share in dividends since its August 1997 IPO.

American Capital is a publicly traded buyout and mezzanine fund with capital resources in excess of $2.7 billion. American Capital is an investor in and sponsor of management and employee buyouts; invests in private equity sponsored buyouts, and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.

Companies interested in learning more about American Capital's flexible financing should contact Mark Opel, Principal and Senior Vice President, Business Development, at (800) 248-9340, or visit our website.

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 or national economic conditions, or changes in the conditions of the industries in which American Capital has made investments.