FOR IMMEDIATE RELEASE:
July 14, 2005

Contact
Jon Isaacson, Managing Director (301) 951-6122
Brian Maney, Director, Corporate Communications (301) 951-6122

COMPUSEARCH ON TOP OF FEDERAL PROCUREMENT

By Maureen Flanagan

Founded in 1983, Compusearch Software Systems, Inc., based in Dulles, VA, has developed the leading software for automating the business-to-government procurement process. PRISM, Compusearch's software, offers complete functionality for all phases of government procurement and significantly speeds up compliance with the complex bidding rules for federal contracts. PRISM's ease of use, ease of integration with other software systems and adaptability for different users have made PRISM the procurement software of choice for the Departments of Defense, Transportation, Treasury, Health and Human Services, Agriculture, Homeland Security, Interior and other federal agencies.

In a July 7, 2005 transaction, Compusearch was acquired by the Carlyle Venture Partners, The Carlyle Group's U.S. ventures group. In support of the buyout, American Capital Strategies, Ltd. (Nasdaq: ACAS) provided one-stop senior, subordinated and equity financing.

"As the "best in class" software product, PRISM offers a significant value proposition for customers," said Jon Isaacson, American Capital Managing Director. "It automates repetitive tasks, simplifies the bid/proposal process, improves information flow, and meets all IT requirements mandated for individual departments and agencies."

Over the last 10 years, Compusearch's PRISM software product has evolved from DOS to Windows to a web-based platform that meets government procurement office requirements "out of the box." PRISM supports the full range of procurement activities, including requisition and solicitation generation, competitive bid evaluation, award generation, contract management, management reporting, contract closeout and archiving.

The company's software enables procurement professionals to remain fully compliant with stringent Federal Acquisition Regulations, a complex set of continually changing purchasing rules with which federal departments and agencies must comply for procurement. It can be used as a stand-alone product or in conjunction with an agency-wide Enterprise Resource Planning (ERP) system, including the largest such government systems, SAP and Oracle/PeopleSoft. Moreover, PRISM employs common protocols and standards for seamless communication with other agency systems and applications. Its open architecture and use of commercial off-the-shelf software (COTS) systems enable it to be upgraded as new operating systems, database management systems and network hardware become available.

In addition to selling licenses for the use of PRISM software, Compusearch also offers a variety of other services. These include customization services, consulting on the implementation and use of PRISM as well as training on its use.

In the July 2005 transaction, American Capital provided a revolving credit facility, senior term loans, subordinated debt, and convertible preferred equity. Carlyle Venture Partners and Compusearch's senior management also made equity investments.

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

Compusearch competes within the federal market for government procurement software. This market evolved over the last decade as agencies have begun to replace their relatively expensive, difficult to maintain, custom-built systems that addressed only portions of their procurement needs with COTS software systems such as PRISM. In the next several years, most buyers and many requisitioners of government services are expected to be added to web-based COTS procurement systems.

Compusearch's strong relationships with major ERP contractors will continue to benefit the company. Compusearch has broadened its marketing efforts by cultivating close relationships and teaming with systems integrators and financial systems providers, such as IBM, BearingPoint, Accenture, Oracle/PeopleSoft and SAP.

Compusearch is the preferred solution for highly functional, adaptable, and user friendly procurement. As the federal government increasingly automates its procurement processes, Compusearch is positioned to be the winning bidder.