FOR IMMEDIATE RELEASE:
December 6, 2005

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Todd Wilson , Principal (212) 213-2009
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DELSTAR GOES GLOBAL WITH FILTER TECHNOLOGIES

By Maureen Flanagan

DelStar Technologies, Inc., based in Middletown, DE, was formed in 2001 when two manufacturers of highly engineered, thermoplastic nonwoven products, Nalle Plastics, Inc. and AET's Specialty Nets and Nonwovens division, were merged. Nalle and AET's Specialty Nets and Nonwovens division were technology leaders with proprietary manufacturing processes and dominant positions in their filtration, healthcare and industrial market segments. Since the merger, DelStar has nearly doubled its revenues and accelerated growth through acquisitions, manufacturing line expansions and a new manufacturing facility in China.

On December 2, 2005, DelStar was acquired by American Capital Strategies, Ltd. (Nasdaq:ACAS) in a One Stop Buyout^TM. American Capital provided a $114 million financing package, consisting of a revolving credit facility, senior term loans, senior subordinated debt and equity. The company's senior management and employees have retained an equity stake in the company.

Since 1997, American Capital has invested more than $7 billion in over 190 middle market companies. For more information about American Capital's portfolio click here.

"With its proprietary manufacturing capabilities and designs, DelStar can manufacture netting and other products to exacting specifications and we have several products that cannot be matched by any other manufacturer in the world," said Mark Abrahams, the company's CEO. "The company will build on its strengths as DelStar increases international sales, exploits new opportunities and continues to introduce market leading product innovations."

Serving more than 1,000 customers, DelStar offers 4,000 SKUs in five major product categories. DelStar's core filtration product line offers components that are critical to the efficacy of air, water and other liquid filters. The company's products have been qualified to nearly every international filtration standard, resulting in DelStar's leading market share of the filtration netting category and the global reverse osmosis filtration market.

Naltex, a leading brand of filtration netting, is made using a proprietary manufacturing process. Naltex is used to facilitate flow and provide support within a filter and can be customized to meet a wide range of product specifications and customer performance requirements. The Company's Delnet apertured films are lightweight nonwoven netting fabrics with symmetrical hole patterns that enable the required degree of permeability needed for filtration, healthcare and industrial applications. As such, Delnet is used in products such as air and liquid filters, wound care supplies, medical face masks and textile applications. DelStar's Stratex line was developed for the healthcare industry. These non-adherent wound-care films are produced by laminating multiple layers of nets, nonwovens, or textile products together to form a composite material. DelStar's DelPore products are used for high-performance filtration applications such as air-grade versions for respirators, facemasks, and HVAC systems as well as liquid-grade products to filter potable water, industrial process fluids, and pharmaceutical and biological agents.

In 2004, DelStar expanded its offerings by acquiring Coretec Plastics, Inc. and Industrial Research Machine Products, giving the company extruded rod, tube, and piping capabilities and a precision machining center, largely focused on the reverse osmosis market

DelStar's end-markets should continue to enjoy strong growth characteristics. In particular, filtration will benefit from increasing regulations for safe drinking water and clean air and the aging and inadequate treatment infrastructures in the U.S. and Europe. Within water filtration, reverse osmosis applications supported by DelStar's products are expected to continue their strong growth trajectory.

Heightened demand in China and other developing countries offers enormous opportunities for DelStar. The Chinese water filtration market is expected to grow rapidly, fueled by the need to meet the Chinese government's mandate to bolster water quality and build additional water treatment plants. With DelStar's manufacturing presence in Suzhou, China, and its major filtration customers' presence in Asia, the company is well-positioned to benefit from these trends.

DelStar is also targeting fast growing segments within its medical markets. The company recently introduced products used in teeth whitening applications and time release skin patches.

With growing market opportunities, DelStar is positioned to leverage its strong position, unique manufacturing capabilities and innovative technologies to advance its global leadership.