FOR IMMEDIATE RELEASE:

September 15, 2006

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

American Capital Invests in Recapitalization of Marina Medical Billing Service

Bethesda, MD – September 15, 2006 – American Capital Strategies Ltd. (Nasdaq: ACAS) announced today it has invested in the recapitalization of Marina Medical Billing Service Inc., a leading provider of revenue cycle management services for hospital emergency department physician groups.  American Capital’s investment takes the form of a senior term loan, senior and junior subordinated debt and convertible preferred and common equity.  American Capital is also providing a revolving credit facility.  Led by Marsha Besley, Founder and President, and Michael Connellan, CEO, Marina’s senior management team will continue to be key shareholders with convertible preferred and common equity positions.   

“We are delighted to be making this investment in Marina Medical Billing Service, a highly respected provider of revenue cycle management services to hospital emergency department physician groups,” said American Capital Regional Managing Director Brian Graff.  “We are also pleased to be partnering with a distinguished management team that is committed to the long term future with Marina and has established a scaleable business model, driving the Company’s steady growth and geographic expansion.”  

American Capital has invested $5 billion in the last twelve months, approximately $3.5 billion year to date and $1 billion quarter to date.  These amounts do not include American Capital’s unfunded equity commitment and debt funded to its affiliate European Capital. For more information about American Capital's portfolio, click here.

“Marina has earned a superior reputation for service and high collection rates in an industry where reputation is the number one criterion used in choosing billing partners.  This reputation has allowed Marina to attract a steady stream of new customers and through its excellent service, the Company maintains a very high retention rate among existing customers,” said American Capital Managing Director Jon Isaacson.   “With its wide experience in the highly variable billing practices of private, state and federal payors and its successful penetration of characteristically tight knit emergency department communities, Marina has established a strong presence in this market niche.”
 
“Marina is a standout participant in the highly specialized area of revenue cycle management for hospital emergency departments, one of the most rapidly growing areas in the medical industry due to the aging population and the rising costs of critical medical care, “ said American Capital Vice President Eugene Krichevsky.  “The Company has historically grown on the strength of its excellent reputation, and now expects accelerated growth throughout the country as it places a greater emphasis on proactive business development efforts.”

Marina Medical Billing Service, founded in 1981, is a provider of billing and collection services to hospital emergency department physician groups and physician practice management companies in six states.  The Company’s services include coding, preparing and submitting claims for insurance reimbursement, mailing patient billing statements and coordinating cash collections.  Marina is headquartered in Cerritos, CA and employs nearly 400 people.  In 2006, Marsha Besley, Marina Founder and President, won the Ernst & Young/Orange County Business Journal Entrepreneur of the Year award. 

“We’re extremely happy to have American Capital join us as an equity investor and lender,” said Marina Medical Billing Service CEO Mike Connellan.  “We looked carefully for a financial partner who would share our 25 year commitment to quality and service to emergency medicine and who had the resources to help us for many years to come.  Successfully completing this recapitalization increases our capacity to invest capital in our business, leveraging our capabilities and established infrastructure to expand so we can ultimately better serve our clients.”

ABOUT AMERICAN CAPITAL

American Capital is a publicly traded buyout and mezzanine fund with capital resources of $8.9 billion. American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, provides capital directly to early stage and mature private and small public companies and through its asset management business is a manager of debt and equity investments in private companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. American Capital invests up to $400 million per company.

As of  August 31, 2006, American Capital shareholders have enjoyed a total return of 476% since the Company's IPO - an annualized return of 21%, assuming reinvestment of dividends.  American Capital has paid a total of $1.2 billion in dividends and paid or declared $21.56 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 www.AmericanCapital.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.