NEWS

Bethesda, MD - August 19, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it has invested $58 million in two new portfolio companies. One company, Evenflo Company Inc., is a leading supplier of juvenile products for children ranging from infants to preschoolers. The investment supports Harvest Partners Inc.'s acquisition of Evenflo from Kohlberg, Kravis Roberts & Co. The other company, Schoor DePalma Inc., is a leading diversified provider of design and engineering services. The investment supports Trivest Partners L.P.'s recapitalization. American Capital's investments in the two companies include senior debt, a second lien note and equity. In addition, Schoor DePalma management is investing in Schoor DePalma common stock. Employee shareholders retain a significant share of Schoor DePalma's equity.

"Both Evenflo and Schoor DePalma are excellent examples of American Capital's strategy of partnering with management and private equity investors to add strong companies to our portfolio," said American Capital COO Ira Wagner. "We are pleased to be initiating a relationship with Harvest Partners and to be working with Trivest again."

American Capital has invested over $1.5 billion in the last twelve months and over $900 million year to date. For more information about American Capital's portfolio click here.

"Evenflo is a trusted company with over 80 years of history whose portfolio of well-known products make it one of the most recognized juvenile products brand names in the United States and internationally," said American Capital Managing Director Brian Graff. "Evenflo's leading market position, dedication to new product development and strong relationships with national retailers positions it to capitalize on positive industry fundamentals. We are pleased to work alongside a solid management team that is deeply focused on growing the business through market opportunities and new product innovations as well as implementing cost reductions, as already evident with its outsourcing initiatives and streamlining of operations."

"Schoor DePalma has a superior track record of outstanding service and quality, resulting in a top-tier, repeat client base and industry leading financial performance," continued Graff. "The Company's broad service offering and strong regional representation will enable it to continue to outperform its peers. In particular, Schoor DePalma's strong, experienced management team of partners is responsible for the firm's remarkable history of organic growth and for hiring and developing the professional staff that have established the firm's sterling professional reputation."

Evenflo Company Inc.
Headquartered in Vandalia, Ohio, Evenflo manufactures a diverse portfolio of juvenile products including car seats, baby bottles, safety gates, strollers, travel systems, activity centers and infant carriers. Evenflo's portfolio of well-known brands includes Evenflo®, Snugli®, Exersaucer® and Gerry®. The company's customers include prominent retailers such as Wal-Mart, Target, Toys "R" Us, Kmart and Burlington Coat Factory. Evenflo holds approximately 300 patents and has licensing agreements with popular children's brands such as Disney Babies®, Baby Looney Tunes®, Barbie®, HotWheels® and OshKosh B'Gosh®. Evenflo, which recorded 2003 sales of approximately $300 million, has 17 manufacturing facilities, warehouses and offices throughout the United States, as well as in Mexico, Canada, mainland China, Hong Kong and Taiwan, and employs nearly 1,500. To the right is the Triumph® 5 Convertible Car Seat, a safe and comfortable car seat which converts from a rear-facing seat to a front-facing seat. For more information about Evenflo's product innovation click here.

"American Capital proved to be the perfect partner in this investment, conducting in-depth due diligence and committing the capital we needed to execute a quick closing," said Harvest Partners Principal Chris Fuller. "With American Capital as our investment partner, we will build on Evenflo's strong history of innovation and leadership in the juvenile products industry and assist in its continued success as it develops new products in the years ahead."

Schoor DePalma Inc.
Founded in 1968, Manalapan, NJ headquartered Schoor DePalma is a single-source provider of design and engineering services to the commercial and government sectors. The company provides its broad base of more than 500 clients a wide range of services through its eight divisions: real estate, environmental, facilities, traffic and planning, municipal services, water resources, transportation and construction engineering services. Services include those related to all phases of commercial, corporate and residential development. The company's customers include municipalities, boards, agencies, authorities, bi-state authorities and companies in various industries such as real estate development, insurance, banking, utilities and construction. Schoor DePalma employs approximately 600 in twelve regional offices in New Jersey, New York and Pennsylvania. The company has grown revenues at an annualized rate of approximately 17% since 2000 and was recently listed as the one the Top 150 Global Design Firms by Engineering News Record. For more information about Schoor DePalma's broad offering of engineering services click here.

"Once again, American Capital was able to understand our investment strategy and meet our financing needs in the investment of a leading middle market company," said Trivest Partners Partner and Chief Operating Officer Troy Templeton. "Schoor DePalma will continue to expand its footprint and better serve the engineering and design needs of its current and prospective customers."

American Capital
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.

Harvest Partners
Founded in 1981, Harvest Partners is a leading New York-based private equity investment firm, pursuing management buyouts and growth financings of medium-sized businesses. Focused on specialty services, consumer, manufacturing and value-added distribution businesses, Harvest has over 20 years of experience investing in domestic as well as multinational companies. Currently, Harvest has over $1 billion of invested and committed capital under management from its limited partners, which include numerous pension funds, domestic and international industrial corporations, and various financial institutions. Select Harvest portfolio companies include Communications Supply Corporation, a leading U.S. distributor of low voltage network infrastructure products; New Flyer Holdings, Inc., the largest North American manufacturer of transit buses; Associated Materials, Inc., a leading manufacturer and distributor of residential building products; and Global Power Equipment Group, Inc. (NYSE: GEG), a leading designer, engineer and fabricator of gas turbine power plant-related products.

Trivest Partners
Trivest Partners is a Miami, Florida based private investment firm and leading provider of equity for middle market corporate acquisitions, recapitalizations and growth capital financings. Since its founding in 1981, Trivest Partners has sponsored more than 115 acquisitions and recapitalizations, totaling in excess of $2.4 billion in value. Trivest invests primarily in four market segments - consumer products, business services, niche manufacturers and healthcare companies. Trivest's portfolio of investments include Magic Holdings, LLC, Canada's leading franchisor of personal health counseling centers, primarily for weight loss; Superior International, Inc., a manufacturer and distributor of commercial playground equipment and components; and Directed Electronics, a designer and marketer of consumer brand name car security and convenience systems. American Capital is also an investor in Directed Electronics.

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.