FOR IMMEDIATE RELEASE:
August 19, 2005

Contact
Todd Wilson, Principal (212) 213-2009
Brian Marshall, Vice President (212) 213-2009
Brian Maney, Director, Corporate Communications (301) 951-6122

BUSHNELL IS FOCUSED ON EXPANSION

By Agnieszka Opalka

An industry leader in sports optics for over 50 years, Bushnell Performance Optics, Inc. focused on further expansion into sports equipment and acquired Michaels of Oregon, Co. in an August 19, 2005 transaction. Headquartered in Oregon City, OR, Michaels is a leading manufacturer and marketer of accessories for the hunting, shooting sports and law enforcement markets. The combination positions Overland Park, KS headquartered Bushnell as a one-stop source for sports optics and hunting accessories, offering an extensive portfolio consisting of 12 well-established brand names, 22 product lines and over 4,100 SKUs to a wide array of sports and outdoor enthusiasts and law enforcement professionals. The combined company will now operate as Bushnell Outdoor Products.

As part of the August transaction, American Capital Strategies, Ltd. (Nasdaq: ACAS) provided $117 million of senior and junior subordinated debt to support Bushnell's acquisition. A syndicate led by Antares Capital Corporation provided a senior credit facility. Southfield, MI based Wind Point Partners is the majority equity owner of Bushnell. American Capital previously worked with Wind Point in August 2004, supporting its acquisition of Breeze Industrial Products Corporation, a leading global supplier of steel clamps. For more information about the Breeze investment, click here.

Bushnell joins American Capital's portfolio of more than 130 middle market companies in a wide range of industries. Since 1997, American Capital has invested nearly $6 billion in middle market companies. For more information about American Capital's portfolio click here.

"Michaels is a market leader within the hunting, shooting and law enforcement product categories and we are excited about how these product lines will complement the current Bushnell offering of premium sports optics products," said Bushnell President and CEO Joe Messner. "The addition of outdoor accessories to the existing Bushnell product platforms of sports optics, outdoor technology and premium eyewear broadens the scope of our company and allows us to better serve more of our customers' needs," said Messner.

Since David Bushnell first established Bushnell as a mail-order binocular company in 1948, the company has grown into a top designer and marketer of high-quality, high-performance sports optics. Expanding through complementary acquisitions over the last five years, Bushnell's diversified portfolio includes the Bushnell and Tasco sports optics brands and the Bollé and Serengeti premium eyewear brands. The company has leading market shares in virtually every sports optics category, including binoculars, riflescopes, range finders, telescopes and spotting scopes. Founded in 1888, Bollé is a leading brand of premium sunglasses, ski goggles (pictured above), safety eyewear, and military and tactical eyewear from the finest frame and lens materials. Serengeti is known for its handcrafted, comfortable frames and unique patented glass lenses, which have a reputation for providing unsurpassed visual acuity. Pictured at left is the new Bushnell Imageview Digital Imaging Binocular, which combines a small digital camera into binoculars and enhances the end user's experience by capturing digital images of what is seen through the lens.

Michaels was founded in 1947 by Allison P. "Uncle Mike" Michaels in his Oregon home when he began manufacturing sling swivels, forged metal loops that connects a strap to the gun barrel, for the gunsmith trade. Michaels later broadened its product offering into holsters, developing the first nylon holster, as well as other shooting sports accessories. Michaels now holds the number one market share in swivels, holsters, holster belts, belt accessories and gun cleaning products. The company has also made a number of strategic acquisitions and its brand portfolio now includes Uncle Mike's, a flagship firearms accessory brand including swivels, holsters, holster belts, and belt accessories; Uncle Mike's Law Enforcement, a line of holsters (pictured at right) and other accessories to the law enforcement and military markets; Butler Creek, a line of scope covers, pistol grips, slings, recoil pads, magazine loaders, rifle stocks and barrels, black powder and heavy barrels; Hoppe's, one of the oldest, most recognized brand names in hunting and shooting sports; and Stoney Point, a line of telescoping polecats, folding polecats, various pods and rests, and shooting, cleaning and reloading tools. Michaels also recently introduced its Blackwater Gear line of tactical products, through a partnership with the elite Blackwater Training Centers, Inc., which is a world-renowned provider of professional security services, including combat training, force protection, security, anti-terrorism, canine and aviation operations.

"The Michaels acquisition provides Bushnell with further product diversification and additional brands with leading positions in the hunting and shooting sports segment," said American Capital Principal Todd Wilson. "The acquisition also gives the company opportunities to realize efficiencies related to marketing and sourcing along with potential cross-selling and new market opportunities."

With the Michaels acquisition, Bushnell now offers an extensive portfolio of products reaching multiple end-users including outdoor enthusiasts, hunters, skiers/snowboarders, nature and wildlife observers, fisherman, stargazers, and golfers, among others. In addition, both Bushnell and Michaels' strong, long-standing relationships across multiple distribution channels provide the company with a strong presence in sporting goods retailers, mass merchants, warehouse clubs, sunglass and sport specialty stores, specialty hunting stores, military exchanges and distributors, including Wal-Mart, Cabela's, Costco, Bass Pro Shops, Sunglass Hut, Gander Mountain, Jerry's Sports Center, Sam's Club, Dicks Sporting/Gaylans, LensCrafters and South Sports.

The estimated $85 billion U.S. recreation and leisure industry has experienced steady growth as Americans take up new activities in an attempt at healthier lifestyles. Bushnell specifically operates in the sports optics and hunting and shooting sports segments, which are both large and growing markets as a result of product innovations, increasing participation in shooting and hunting, and a growing middle-aged population, which make up the most active participants in outdoor recreation and leisure activities. Bushnell also competes in the U.S. law enforcement market - approximately a $200 million market - which is also experiencing rapid growth as domestic security spending increases due to global terrorism concerns.

With its combined product line, strengthened market positions and strong customer relationships, Bushnell continues to focus on serving the multiple needs of diverse end-users in steady growing markets.