FOR IMMEDIATE RELEASE:
March 3, 2005

Contact
Kenneth E. Jones, Principal (610) 238-0210
William J. Dyer, Vice President (610) 238-0210
Brian Maney, Director, Corporate Communications (301) 951-6122

AMERICAN CAPITAL INVESTS $14 MILLION IN MANUFACTURER OF COMPRESSION-MOLDED, REINFORCED PLASTICS USED IN AUTOMOTIVE & INDUSTRIAL END-PRODUCTS

Bethesda, MD - March 3, 2005 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $14 million in Continental Structural Plastics Inc. (CSP), a manufacturer of compression-molded, reinforced plastics used in automotive and industrial end-products. American Capital's investment takes the form of senior subordinated debt and redeemable preferred and common equity and supports Richard L. Scott Investments LLC's and CSP management's acquisition of CSP. Antares Capital Corporation and Bank One Corporation are providing a revolving credit facility and senior term loans.

"With our investment in CSP, we add another leading middle market company serving the automotive industry to our portfolio of over 120 companies. American Capital has invested in seven new portfolio companies in 2005 and we have a strong backlog of transactions as we move forward," said American Capital COO Ira Wagner. "We are pleased to be partners with Richard L. Scott Investments in the equity for this transaction as well as providing the mezzanine financing."

American Capital has invested over $2.2 billion in the last twelve months and approximately $350 million year to date. For more information about American Capital's portfolio click here.

"CSP's strong market position as a leading North American molder of glass mat reinforced thermoplastics, its long-term revenue visibility resulting from its multiple year projects on automotive and industrial platforms, and its sole sourcing abilities make it an attractive investment opportunity," said American Capital Principal Ken Jones. "In recent years, CSP has experienced strong growth, in part due to the automotive industry's conversion of steel parts to reinforced plastics. CSP's excellent reputation with its customers for timely delivery, customer service and world-class quality products bode well for the firm as this trend continues."

"CSP's proactive product innovation will enable it to penetrate new markets by actively seeking opportunities to convert traditional materials to reinforced plastics," said American Capital Vice President Bill Dyer. "This is expected to drive further growth and decrease the company's risk to the cyclicality of the automotive industry."

Founded in 1919, CSP's compression-molded, reinforced plastics are used in automotive and industrial end-products. CSP manufactures the majority of its products with glass mat reinforced thermoplastics (GMT), one of the toughest and most flexible plastic compounds and a substitute for steel in applications requiring both strength and impact resistance. CSP's customers include North American and transplant automotive OEMs, Tier 1 automotive suppliers and industrial OEMs. CSP employs over 400 in its two manufacturing plants in Michigan and Louisiana.

"American Capital's financial support, team of hard working, dedicated professionals and automotive OEM industry expertise helped us bring this transaction to a timely close," said Richard L. Scott Investments Principal Richard Scott. "CSP is positioned to build on its market leadership in its niche and capitalize on new growth opportunities in the automotive industry as well as with other industrial applications undergoing a conversion to plastics."

ABOUT AMERICAN CAPITAL

American Capital is a publicly traded buyout and mezzanine fund with capital resources of more than $4.8 billion. American Capital is an investor in and sponsor of management and employee buyouts, invests in private equity 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.

As of February 28, 2005, American Capital shareholders have enjoyed a total return of 348% since the Company's IPO - an annualized return of 22%, assuming reinvestment of dividends. American Capital has paid a total of $651 million in dividends and paid or declared $16.76 dividends per share since its August 1997 IPO at $15 per share.

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

ABOUT RICHARD L. SCOTT INVESTMENTS LLC

Richard L. Scott Investments LLC was founded in 1997. Since its founding, Richard L. Scott Investments LLC has made leveraged buyout, recapitalization/restructuring and growth capital investments in companies in the following industries: manufacturing, transaction processing, financial services, cable network, recreation, network security, catalog retail, medical equipment, pharmacy retail and healthcare services.

Performance data quoted above represents past performance of American Capital. Past performance does not guarantee future results and the investment return and principal value of an investment in American Capital will likely fluctuate. Consequently, an investor's shares, when sold, may be worth more or less than their original cost. Additionally, American Capital's current performance may be lower or higher than the performance data quoted above.

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.

This announcement is neither an offer to sell nor a solicitation to buy securities.
This announcement appears as a matter of record only.