FOR IMMEDIATE RELEASE:
June 9, 2005

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UNWIRED PLAYS KEY ROLE IN MOBILE ENTERTAINMENT

By Maureen Flanagan

Unwired Technology LLC, headquartered in Plainview, NY, produces wireless headphones and components for automotive entertainment systems. The company was the first to adapt wireless headphone technology for in-vehicle use and the first to introduce two source headphone systems. Unwired continues to lead the market with new advances. As the technology leader, it owns a leading market share in both the automotive equipment manufacturers market and the aftermarket.

In a May 27th, 2005 transaction, American Capital Strategies, Ltd. (Nasdaq: ACAS) partnered with management to purchase the Company. American Capital provided a $56 million financing package consisting of a revolving credit facility, senior financing, subordinated debt and equity. Larry Richenstein, Unwired's founder, President and CEO, rolled over a portion of his equity and retained a significant ownership interest and will continue to manage the Company.

"Unwired is positioned to take advantage of the proliferation of automotive entertainment systems. With its leading 2- and 4-channel technology, the company continues to be at the forefront of consumer automotive electronic demand," said Lawrence Richenstein, Unwired's founder, President and CEO.

Richenstein started the company in 1997 after recognizing the growth potential in wireless headphone applications. First targeting the home entertainment market, Unwired quickly shifted its focus to the automotive aftermarket where rear-seat entertainment was beginning to make market inroads.

In 1997, the company produced a single-channel headset for the aftermarket which was soon followed by dual-source infrared (IR) wireless headphones and transmitters. Infrared technology is ideal for wireless technology in automobiles because it provides clear, interference-free reception that is not susceptible to unwanted signals or sounds from other vehicles. The company adapted its products to the rigid specifications of automotive manufacturers and in February 2000 shipped its first set of wireless headphones to the OEM market. The company's products are now found in nearly all major OEM platforms.

Unwired has expanded rapidly with technological advances. In 2003, the company introduced WhiteFire®, a four-source digital wireless headphone system developed to meet the expanding number of automotive media options. WhiteFire® technology, developed in-house, permits the digital transmission of up to four high-quality stereo audio signals to vehicle passengers, allowing each to listen to their own audio source.

The company currently produces nine styles of IR headphones and three transmitters. It also produces radio frequency headphones and transmitters in addition to an FM band headphone set and transmitter.

Since 1997 American Capital has invested more than $5 billion in the middle market. It currently manages a portfolio of 130 companies in a wide range of industries. For more information about American Capital's portfolio click here.

Modern mobile lifestyles and the high penetration of digital audio/video systems, cell phones and the internet are driving a mobile "infotainment" revolution. To overcome the boredom of commuting on increasingly congested roads, consumers are turning the car into a mobile living room. As a result, consumers are demanding devices like those manufactured by Unwired that create a home entertainment environment in their vehicles. Pictured at left are Unwired's wireless headphones delivering entertainment to automotive passengers.

In 2002, the North American sales of automotive entertainment and navigation systems totaled $1.2 billion. The rear-seat entertainment system market is projected to grow at a 12% annual rate from 2004 to 2008.

The company's targeted vehicle types, including minivans, SUVs and the newly popular SUV Crossovers, are poised for strong growth as families spend greater amounts of time in their vehicles. Unwired is positioned to meet this demand as auto manufacturers spec DVD and other entertainment systems into their vehicle platforms. The company's leading position in the aftermarket is also yielding benefits. The aftermarket reacts to new technologies more quickly than original equipment manufacturers and is typically a less expensive alternative. As a result, the aftermarket will continue to expand the company's customer base. In addition, with the increasing adoption of in-vehicle entertainment systems in Asia and Europe, the company believes that there is significant growth opportunity in their current international business.

The company's WhiteFire® digital technology is also expected to drive sales, as prices decrease and more audio sources, such as satellite TVs, I-Pods, video games, etc., are utilized in cars. In the future, WhiteFire® technology will also be used as a two-way digital transmission system for telematics headsets and other two-way data transmissions for both home and mobile communications.

With innovative, market-leading products, increasing demand, and reduced manufacturing costs, Unwired is the frontline player of the wireless automotive infotainment revolution.