FOR IMMEDIATE RELEASE:
June 28, 2005

Contact
Jon Isaacson, Principal (301) 951-6122
Sean Eagle, Vice President (301) 951-6122
Brian Maney, Director, Corporate Communications (301) 951-6122

AMERICAN CAPITAL INVESTS $28 MILLION IN ROADRUNNER DAWES COMBINATION

Bethesda, MD - June 28, 2005 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $28 million to partially finance the merger of Roadrunner Freight Systems Inc. and Dawes Transport Inc. The combined entity, Roadrunner Dawes Inc., is a leading non-asset based, less-than-truckload ("LTL") transportation provider. American Capital's investment takes the form of senior subordinated debt and voting and non-voting common equity. LaSalle Bank, M&I Bank and US Bank are providing a revolving credit facility and investing in senior term debt. Sankaty Advisors is investing in senior subordinated debt and equity. Eos Partners is also investing in equity. Thayer Capital Partners is the majority owner. Post close, American Capital owns approximately 12% of Roadrunner Dawes on a fully diluted basis.

"The Roadrunner Dawes transaction is an excellent opportunity for American Capital to leverage our intimate knowledge of Roadrunner and to work again with Thayer Capital," said American Capital COO Ira Wagner. "We are pleased to be working with familiar partners and supporting the combination of two outstanding, innovative companies in the logistics space."

American Capital has invested over $2.5 billion in the last twelve months, over $1.2 billion year to date and over $870 million quarter to date. For more information about American Capital's portfolio click here.

"Roadrunner and Dawes are an excellent strategic fit," said American Capital Principal Jon Isaacson. "We believe the organizations are complementary in many respects and the transaction provides a number of readily apparent operating synergies. We are also investing in a formidable management team and look forward to supporting them."

"Roadrunner Dawes' operating model allows freight to move more efficiently than its competitors and provides customers with an unparalleled service offering," said American Capital Vice President Sean Eagle. "The Company has terminals in 16 cities, which provide a truly national footprint, allowing it to better serve a highly diversified customer base while creating a natural hedge against any regional economic risks."

In July 2003, American Capital invested $33 million in the acquisition of Roadrunner. American Capital's investment took the form of senior and junior subordinated debt with warrants and common equity. In 2004, the Company prepaid $14 million of American Capital's senior subordinated note, resulting in a gain of $1.7 million. In May 2005, American Capital sold Roadrunner to Thayer Capital for total proceeds of $47 million, realizing an additional gain of $26 million. To assist in Thayer's purchase of Roadrunner, American Capital provided $24 million of financing in the form of senior and junior subordinated notes, which have been repaid in connection with the merger of Roadrunner and Dawes. American Capital earned a 69% compounded annual rate of return on its investment in subordinated notes and common equity interest in Roadrunner. The 69% return includes the realized gain, interest and fees received over the life of American Capital's investment in the company.

Click here for more information about American Capital's investment in Roadrunner.

Founded in 1984 in Milwaukee, WI, Roadrunner Freight Systems Inc. is an inter-regional freight services company, which consolidates less-than-truckload ("LTL") shipments into full truckloads, minimizing the need for intermediate handling. Dawes was established in 1981 in Milwaukee, WI and is also an inter-regional, long-haul LTL transportation service provider. Dawes has seen 22 consecutive years of revenue gains. The combined company operates a network of 18 terminals throughout the Midwest, Southeast, Texas and West Coast, and utilizes a network of independent agents to deliver to additional destinations. Roadrunner Dawes generated, on a pro forma basis, revenues of approximately $340 million as of the closing on a trailing twelve month basis. The new company will maintain its corporate headquarters in Milwaukee.

ABOUT AMERICAN CAPITAL

American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $5.4 billion. American Capital invests in and sponsors 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 May 31, 2005, American Capital shareholders have enjoyed a total return of 364% since the Company's IPO - an annualized return of 22%, assuming reinvestment of dividends. American Capital outperformed 86%, 72%, 85% and 91% of all U.S. public companies with a current market capitalization greater than $1 billion^* in the one-year, three-years, five-years and the approximately seven and a half years since the IPO, in each case ending May 31, 2005. 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 THAYER CAPITAL

Thayer Capital Partners is a private equity investment firm based in Washington, D.C. managing three private equity funds totaling approximately $1.5 billion. The firm manages buyouts and consolidation investments with a focus on industrial products and services. Portfolio companies include Heckethorn Manufacturing Company, the leading designer and manufacturer of metal exhaust hardware components for the North American automotive original equipment market; TEAC Aerospace Technologies, the global leader in airborne video recording products to the defense industry; Associated Asphalt Inc., one of the largest liquid asphalt resellers in the United States; and Qualitor Inc., a diversified automotive aftermarket parts manufacturer. In December 2004, American Capital invested $33 million in senior and junior subordinated debt and preferred and common equity in Qualitor, supporting Thayer's investment. For more information about the Qualitor investment click here.

^*Figures were updated on June 28, 2005

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.