FOR IMMEDIATE RELEASE:
April 6, 2006

Contact
Natasha Volyanskaya, Vice President (415) 591-0120
Brian Maney, Director, Corporate Communications (301) 951-6122

Appleseed's -- The Perfect Fit for Baby Boomer Women

By Maureen Flanagan

Founded in 1946, Appleseed's, Inc. began as a catalog and general store that offered clothing and gifts to an affluent New England clientele.  Over the years, the Beverly, MA-based company developed a highly successful niche in the apparel market catering to the baby boomer female demographic.  Today Appleseed's is one of the leading merchandisers in the segment.  It has continued to expand with the August 2005 acquisition of The Tog Shop catalog, a well-known brand serving a complementary customer base.

In November 2005, Appleseed's was purchased by Golden Gate Capital (GGC), a San Francisco-based private equity firm with over $2.5 billion under management.  GGC's portfolio includes several top specialty catalogs serving complementary market segments: Spiegel, Newport News, and Draper's & Damon's.

In February 2006, GGC refinanced its Appleseed's investment.  In this transaction, American Capital Strategies, Ltd. (Nasdaq: ACAS) provided $15 million in secured senior subordinated debt financing.

Appleseed's joins American Capital's diversified portfolio of companies which include several catalog and retail merchandisers.  For more information about American Capital's portfolio,click here.  Since 1997, American Capital has invested approximately $8.4 billion in middle market financings.

"Appleseed's has tremendous market opportunities," said Natasha Volyanskaya, American Capital Vice President.  "Unlike the teen and young adult segments of the women's apparel market, only a limited number of brands are dedicated to serving the large and affluent baby boomer market segment.  In addition, the benefits provided by GGC's complementary catalog businesses will give Appleseed's access to increased purchasing power, significant offshore sourcing expertise, cross-prospecting and the sharing of best practices."

Appleseed's serves a distinct customer profile within the baby boomer female market, focusing on the well-educated, suburban woman who is interested in comfortable clothes with a reliable fit and classic, tailored style.

The company's catalogs, Appleseed's and The Tog Shop, offer an extensive array of products in a wide variety of colors and sizes.  Appleseed's also operates a website at www.appleseeds.com and retail stores in Massachusetts and Rhode Island.  The company enjoys high customer loyalty and retention rates.  Pictured here is one of Appleseed's Spring 2006 catalogs.

The Tog Shop acquisition further expanded the company's core customer base with a highly complementary brand.  Substantial overlap exists between Appleseed's and The Tog Shop customers and many customers order from both catalogs.

"Appleseed's is one of the leading brands focused solely on the baby boomer female demographic," said Brenda Koskinen, Appleseed's President.  "We are committed to continuing to serve our primary customer profile and maintain Appleseed's as a favorite brand at a time of explosive growth in our target customer demographic."

Women 50 and over constitute an estimated 38% of the female population, or 50 million potential buyers, representing the largest, fastest growing and most underserved segment of the U.S. population.  Over the last two decades, catalog sales have grown at twice the rate of the general retail industry, driven by busier lifestyles, the introduction of niche catalogs such as Appleseed's and improved data mining and mailing tools.

Appleseed's expects that these trends will serve it well as the company continues to leverage its proprietary market knowledge and successful marketing strategies.  The company's newly designed website, launched September 2005, adds to the visibility of the Appleseed's brand.  In addition, a redesigned website for The Tog Shop will be re-launched in the Spring of 2006 at www.togshop.com.

Led by an experienced management team, Appleseed's will continue to build on its strong position in a fast growing retail segment.  For baby boomer women, Appleseed's is just the right fit.