FOR IMMEDIATE RELEASE:
May 20, 2005

Contact
John Thornton, Principal (415) 591-0120
Natasha Volyanskaya, Vice President (415) 591-0120
Brian Maney, Director, Corporate Communications (301) 951-6122

AMERICAN CAPITAL INVESTS $66 MILLION IN PROVIDER OF CARGO SECURITY AND PRODUCT IDENTIFICATION AND TRACEABILITY SOLUTIONS

Bethesda, MD - May 20, 2005 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $66 million in Tyden Group Inc., a leading provider of global cargo security and product identification and traceability solutions. American Capital's investment takes the form of senior term loans, senior subordinated debt and common equity and supports Crimson Investment's acquisition of Tyden. American Capital is also providing a revolving credit facility.

"We are pleased to work for the first time with Crimson Investment and provide a one-stop solution financing package for their acquisition of Tyden," said American Capital COO Ira Wagner. "We continue to have a strong pipeline of investment opportunities going forward and our staff of over 130 investment professionals makes it possible for us to respond rapidly to opportunities."

American Capital has invested over $2.4 billion in the last twelve months, nearly $760 million year to date and over $350 million quarter to date. For more information about American Capital's portfolio click here.

"Tyden holds the leading market share in the high-security barrier cable and indicative metal seal markets and the dot-peen marking equipment market. By providing quality cargo seals for over 100 years, the Tyden brand has become synonymous with high quality and its indicative seals are considered the industry standard with the Tyden® Ball Seal one of the world's best-selling tamper-indicative cargo seals. Tyden is also the only manufacturer that offers both dot-peen and fiber laser marking solutions, enabling customers to track and identify parts and products through the supply chain," said American Capital Principal John Thornton. "With favorable industry trends in the cargo seal market and marking equipment market driven by an increased focus on homeland security, heightened commitment to combating terrorism and an increasing global economy, Tyden's leading products will help customers protect the products they manufacture, ship and store."

"As a clear leader in the dot-peen marking market, Tyden will leverage its marking technology knowledge, established customer base, proprietary software and vendor relationships to extend full-service capabilities in the emerging fiber laser marking market," said American Capital Vice President Natasha Volyanskaya. "Also, as multinational OEMs expand manufacturing in Asia, the Company will enjoy significant growth opportunities in China and throughout Asia."

Tyden Group, headquartered in Grand Rapids, MI, was founded in 1897. Through its three divisions, Tyden Seal, Brammall and Telesis Technologies, the Company provides products that ensure greater security for the transportation of goods and increased efficiency throughout the global supply chain. Tyden Seal and Brammall are manufacturers of tamper-evident and traceable cargo security seals for companies in the rail, truck and ocean transportation industries. Telesis Technologies is the only manufacturer of product marking and identification equipment that offers both dot-peen and laser marking systems that customers use to uniquely mark and authenticate parts and products as they move through the supply chain. Dot peen marking machines, typically suited for metal, utilize a stylus or pin to repeatedly strike the surface of the product, creating straight, arced or radial inscriptions whereas laser marking systems utilize the heat of a laser beam to etch the desired text, logo or other identifier into metal, plastic, fabric, rubber and leather surfaces. The Company serves a diverse customer base in the rail and truck transportation, automotive, aerospace, consumer products, industrial equipment and medical devices industries. Customers include the U.S. Postal Service, United Parcel Service of America Inc. (NYSE: UPS), Cargill Inc., Exxon Mobil Corporation (NYSE: XOM) and Smith & Nephew (NYSE: SNN). Pictured above is a Tyden® Ball Seal, one of the world's leading tamper-indicative cargo seals.

"American Capital worked efficiently and rapidly to bring this acquisition to a close," said Crimson Investment Managing Director Steven Dollinger. "Their experience in a broad range of industries and expertise in mezzanine financing enabled them to effectively resolve issues that arose throughout the transaction process."

For more information about Tyden's leading cargo security seals click here.

ABOUT AMERICAN CAPITAL

American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $5.2 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 March 31, 2005, American Capital shareholders have enjoyed a total return of 311% since the Company's IPO - an annualized return of 21%, assuming reinvestment of dividends. As of March 31, 2005, American Capital has outperformed 99% of all public companies based on annual returns in each of the past 1, 3, 5 and 7 year time periods. American Capital has paid a total of $717 million in dividends and paid or declared $17.51 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 CRIMSON INVESTMENT

Established in 1993, Crimson is an international private equity firm that provides buyout and growth capital financing to companies in the manufacturing and services sectors that have the potential to access sourcing, manufacturing or support capabilities in Asia. With approximately $600 million under management, Crimson has offices in Asia and the U.S. Portfolio companies include: eTelecare Global Solutions, a leading offshore provider of complex inbound call center services; Silitech Technology Corporation, a leading cellular phone keypad manufacturer; Princo Corporation, one of the world's largest manufacturers of recordable DVD and CD disks; and Gordon Auto Body Parts, a leading aftermarket manufacturer of replacement automotive parts.

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.