FOR IMMEDIATE RELEASE:
July 8, 2005

Contact
L. Thomas Gregory, Managing Director (312) 681-7400
Brian Maney, Director, Corporate Communications (301) 951-6122

AMERICAN CAPITAL INVESTS $25 MILLION IN LEADING DISTRIBUTOR OF JANITORIAL AND SANITARY PRODUCTS

Bethesda, MD - July 8, 2005 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $25 million in the recapitalization of AmSan LLC, a leading distributor of janitorial and sanitary products to building services contractors, educational, healthcare and hospitality customers. American Capital's investment takes the form of senior term debt. Merrill Lynch Capital is providing a revolving credit facility and investing in senior term debt. AmSan management is significantly invested in the equity. GTCR Golder Rauner LLC is the majority owner.

"We are pleased to be investing alongside GTCR for the sixth time," said American Capital COO Ira Wagner. "American Capital has worked with 66 private equity firms as a trusted partner, supporting companies with strong managements, reliable cash flows and defensible market niches."

American Capital has invested nearly $2.6 billion in the last twelve months, over $1.3 billion year to date and nearly $40 million quarter to date. For more information about American Capital's portfolio click here.

"American Capital is backing a highly talented and results driven management team with deep and proven distribution expertise," said American Capital Managing Director Tom Gregory. "As the largest company in its niche, AmSan can offer value-added products and services to customers that its smaller competitors cannot. Its national presence allows it to service the needs of large regional and national customers. The Company's new online ordering system, complete product catalog and ability to identify areas of systemic cost reduction for its customers set it apart from its competitors. AmSan is well-positioned for continued growth and profitability within the industry."

AmSan was founded in 1997 to consolidate the highly fragmented janitorial and sanitation products distribution industry, which consists of over 5,000 small competitors. AmSan has a diverse customer base of over 50,000 customers. With over 60 locations and serving customers in over 40 states AmSan is widely recognized as the leader in the janitorial-sanitary maintenance distribution industry. AmSan distributes paper, plastic and chemical supplies as well as other janitorial accessories and power equipment under national brands as well as its own proprietary brand, Renown™.

For more information about AmSan's value-added products and services click here.

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 June 30, 2005, American Capital shareholders have enjoyed a total return of 388% since the Company's IPO - an annualized return of 22%, assuming reinvestment of dividends. American Capital has paid a total of $782 million in dividends and paid $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 GTCR GOLDER RAUNER LLC

Founded in 1980, GTCR Golder Rauner is a leading private equity investment firm and long-term strategic partner for outstanding management teams. GTCR currently manages more than $6 billion of equity capital invested in a wide range of companies and industries. More information can be found at www.GTCR.com.

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.