FOR IMMEDIATE RELEASE:
September 14, 2007

Contact
Tom McHale, Senior Vice President, Finance (301) 951-6122

AMERICAN CAPITAL COMPLETES THE SYNDICATION OF OVER $240 MILLION IN CREDIT FACILITIES FOR THREE PORTFOLIO COMPANIES

Bethesda, MD – September 14, 2007 – American Capital Strategies Ltd. (Nasdaq: ACAS) announced today that it has successfully syndicated over $240 million in credit facilities for three portfolio companies, Exstream Software LLC, triVIN Inc. and Barton Cotton Inc., in which American Capital and affiliates originally committed $798 million in One Stop Buyouts.  American Capital now has $526 million invested in these companies.  These credit facilities were syndicated to approximately 25 institutions.

“Despite the current volatility within broader credit markets, American Capital continues to be successful in syndicating senior credit facilities for its middle market portfolio companies.  We have the largest middle market deal flow in our industry and are thereby extraordinarily selective as to companies in which we invest.  This has allowed us to grow a portfolio of strong portfolio companies, which other financial institutions find attractive,” said Tom McHale, American Capital Senior Vice President of Finance.  “Our Syndications Group has significant experience in structuring, pricing, and syndicating senior debt facilities for transactions in a variety of industries.  The group has worked with a wide range of distinguished financial institutions and senior loan market investors in syndicating these three syndicated transactions, and will continue to utilize their broad stable of investor relationships in transactions going forward.”

Exstream Software LLC
On September 12, 2007, American Capital completed the syndication of $141 million first lien credit facility consisting of a revolving credit facility and first lien term loan for portfolio company Exstream Software LLC, a leading provider of enterprise software for the rapid design and delivery of personalized communications.

On June 22, 2007, American Capital invested in the One Stop Buyout™ of Exstream Software.  American Capital’s investment took the form of a revolving credit facility, first lien term loan, senior and junior subordinated debt and convertible preferred and common equity.

Founded in 1998, Exstream Software is an enterprise software provider whose flagship product, Dialogue, is a comprehensive platform for building and deploying high-volume and interactive document applications across the enterprise.  It was designed with an open architecture and robust functionality to connect easily with an enterprise's data sources, systems and web infrastructure.  With just one solution, customers can create relevant and timely communications that connect with their customers at every touch point.  Companies that adopt Dialogue report significantly reduced costs, fewer calls to customer service and tripled response rates.  Exstream’s recently released Dialogue Live, which is fully integrated with Dialogue 6.0, also automates integration of field-edited documents with centralized corporate systems and document production.  Consistently ranked among the fastest growing technology companies, Exstream has more than 300 employees and more than 400 blue-chip and middle market customers in a variety of industries worldwide.

For more information on American Capital’s investment in Exstream Software, click here.

triVIN Inc.
On August 28, 2007, American Capital completed the syndication of a $34 million first lien credit facility consisting of a revolving credit facility and first lien term loan for portfolio company triVIN Inc., a leading provider of title management services to automobile lenders and electronic vehicle registration services to automobile dealers.

On June 6, 2007, American Capital and an affiliate invested in the One Stop Buyout ™ of triVIN.  American Capital’s investment took the form of a revolving credit facility, senior term loan, senior and junior subordinated debt and convertible preferred and common equity.  American Capital Equity Fund I LLC, a fund managed by American Capital, provided 30% of the American Capital equity investment.
 
triVIN consists of two wholly-owned subsidiaries, FDI Collateral Management Inc. (“FDI”) and General Systems Solutions Inc. (“GSS”).  FDI provides third-party electronic and paper-based lien and title solutions that allow lenders to outsource the management of vehicle titles held as collateral for loans.  GSS provides electronic vehicle registration software and services that allow auto dealers and fleet companies to electronically register vehicles directly with state Departments of Motor Vehicles.  FDI provides vehicle title administration services to some of the nation's largest banks and captive automotive finance companies.  GSS’s customers are franchised and independent automobile dealers, as well as national fleet and rental companies.  triVIN is headquartered in Groton, CT and has facilities in Vooreheesville, NY and Sacramento, CA.  triVIN has more than 600 employees.

For more information on American Capital’s investment in triVIN, click here.

Barton Cotton Inc.
On August 9, 2007, American Capital completed the syndication of a $65 million first lien credit facility consisting of a revolving credit facility and first lien term loan for Barton Cotton Inc., the leading provider of integrated direct marketing fundraising services to non-profit organizations (“NPOs”).

On April 25, 2006, American Capital invested in the One Stop Buyout™ of Barton Cotton.  American Capital’s investment took the form of a revolving credit facility, first lien term loan, subordinated debt and equity.

Barton Cotton has grown over almost 80 years into a leading agency serving some of the world’s best known nonprofit organizations. With full-service capabilities that include strategy, analytics of donor behavior, creative, affinity marketing, DRTV, internet marketing and public relations, the company has helped over 150 nonprofit groups meet and exceed their fundraising objectives.  Barton Cotton uses a proprietary methodology of algorithms to measure an organization’s Donor Momentum™; a calculation that studies donor behavior to assess past fundraising performance and accurately forecast future revenues. Barton Cotton is headquartered in the Baltimore-Washington corridor and is one of the country’s oldest and most venerated firms serving the nonprofit industry.

For more information on American Capital investment in Barton Cotton, click here.

ABOUT AMERICAN CAPITAL

American Capital is the only alternative asset management company that is a member of the S&P 500.  With $17 billion in assets under management¹, including its investments in externally managed funds, American Capital is the largest U.S. publicly traded private equity fund and one of the largest publicly traded alternative asset managers.  American Capital, both directly and through its global asset management business, is an investor in management and employee buyouts, private equity buyouts, and early stage and mature private and public companies.  American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations.  American Capital and its affiliates invest from $5 million to $800 million per company in North America and €5 million to €500 million per company in Europe.

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 or www.EuropeanCapital.com.

¹Assets Under Management is an estimate of internally and externally managed assets as of July 31, 2007 and does not include any fair value adjustments subsequent to June 30, 2007.

This press release contains forward-looking statements. The statements regarding expected results of American Capital 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.