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Bethesda, MD - August 6, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has amended its Dividend Reinvestment Plan ("DRIP"), to provide a 5% discount on shares purchased through the reinvestment of dividends, effective for dividends paid starting in December 2004 and thereafter and subject to the terms of the DRIP.
"American Capital has paid or declared over $524 million of dividends since our IPO in August 1997. With our latest dividend declaration of $.72 per share, we have paid or declared $15.24 per share in dividends, exceeding our IPO price of $15 per share. We are very pleased to take the opportunity that this milestone presents to thank our loyal shareholders for their support with a 5% discount on reinvested dividends," said American Capital Chairman, President and CEO Malon Wilkus. "The dividend is the single most important indicator of American Capital's success, and dividend reinvestment is a terrific way to accumulate additional shares in the Company."
Stockholders interested in the dividend reinvestment plan can review a prospectus, which is available from American Capital or accessible on the American Capital website.
TO ENROLL IN THE DIVIDEND REINVESTMENT PLAN
If your shares are held for your account by a a broker, bank, or other designated candidate:
If your shares are held for your account by a broker, bank, or other designated candidate (usually called a "Nominee") and you would like to participate in the DRIP, you should contact your broker, bank, or other designated candidate to enroll on your behalf.
Please note that some Nominees do not allow account holders to participate in DRIPs or they provide for separate DRIPs, which they administer. American Capital shares held by these Nominees will generally not be able to participate in the American Capital DRIP and will generally not benefit from the new 5% discount. If your shares are held by such a Nominee and you are interested in participating in the American Capital DRIP, you may need to have your shares reissued in certifcate form or transferred to a Nominee that permits participation in the American Capital DRIP.
If you hold your shares in certificate form and are on record with American Capital's transfer agent, EquiServe:
If you hold your shares in certificate form and are on record with American Capital's transfer agent, Equiserve, you must obtain an Authorization Form from EquiServe, complete it and return it to them. To obtain an Authorization Form, write or call: EquiServe Trust Company, N.A., c/o EquiServe, P.O. Box 43010, Providence, RI 02940-3010, (800) 733-5001.
If you are unsure as to whether you hold your shares of American Capital through a broker, bank, or other designated candidate or in certificate form:
If you are unsure as to whether you hold your shares of American Capital through a broker, bank, or other designated candidate (again, usually called a "Nominee") or in certificate form, here's one way to tell the difference:
- If you receive your dividend in the form of a check mailed directly to you from EquiServe, you are a record holder and may complete an authorization form in order to enroll in the DRIP.
- If your dividends are directly deposited into an account with your broker bank, or other designated candidate, you must contact them to enroll in the DRIP.
American Capital has invested over $1.4 billion in the last twelve months and over $850 million year to date.
For more information about American Capital's portfolio click here.
As of July 31, 2004, American Capital shareholders have enjoyed a total return of 257% since the Company's IPO - an annualized return of 20%, assuming reinvestment of dividends. American Capital has paid a total of $524 million in dividends and paid or declared $15.24 dividends per share since its August 1997 IPO at $15 per share.
American Capital is a publicly traded buyout and mezzanine fund with capital resources over $3.3 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.
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