FOR IMMEDIATE RELEASE:
December 4, 2007

Contact
Ken Jones, Principal, Sponsor Finance Group (610) 567-5654
Brian Maney, Director, Corporate Communications (301) 951-6122

AMERICAN CAPITAL PROVIDES ONE STOP FINANCING TO SUPPORT AUDAX GROUP'S ACQUISITION OF NIVEL HOLDINGS

Bethesda, MD – December 4, 2007 – American Capital Strategies Ltd. (Nasdaq: ACAS) announced today that it provided financing for Audax Group’s acquisition of Nivel Holdings LLC, a leading designer and distributor of a broad range of aftermarket golf car replacement parts and accessories. Nivel was previously owned by Sentinel Capital Partners. American Capital's one-stop financing package takes the form of a revolving credit facility, an acquisition facility, a senior unirate loan and a common equity co-investment.

American Capital originally invested $21.6 million in Nivel in February 2004 in the form of a revolving credit facility, senior secured term loans, junior and senior secured subordinated debt with warrants and redeemable preferred and common equity.

“We are delighted to work with Audax for the fourth time and support its acquisition of our portfolio company Nivel,” said Brian Graff, American Capital Regional Managing Director. “We believe our one-stop financing capabilities, the fact that American Capital stood by its staple financing commitment in the midst of the recent credit market turbulence and commitment to growing portolfio companies make American Capital a desirable investment partner for private equity firms, such as Audax.”

American Capital has invested directly and through its funds under management approximately $11 billion in the last twelve months, approximately $9.9 billion year to date and approximately $1.6 billion quarter to date.  Not including funds under management, American Capital has invested approximately $8.0 billion in the last twelve months, approximately $7.3 billion year to date and approximately $1.3 billion quarter to date.  For more information about American Capital’s portfolio, click here.

“Nivel provides its customers significant value by offering a broad selection of inventory across product lines and brands, as well as superior customer service,” said American Capital Principal Ken Jones. “Over the course of our investment in Nivel, the Company has consistently performed well.  In particular, Nivel’s successful integration of Intercoastal Manufacturing Company in 2006 positioned the Company into a true one stop shop for the maintenance, conversion, and improvement of aftermarket golf cars and created efficient national distribution capabilities.  These key strategic benefits from the integration have enabled the Company to build an extraordinary market share, further solidifying a leadership position in this fragmented industry.”

Founded in 1968, Jacksonville, FL-headquartered Nivel offers the broadest selection of golf car replacement parts for all major manufacturers' cars. Nivel carries over 3,800 SKUs, including accessories, battery parts, bearings, seals, o-rings, brake parts, chargers, motor and engine parts, gaskets, solenoids, springs, switches and tires. The Company distributes golf car parts exclusively to over 3,400 independent and franchise golf car dealers throughout the U.S. and internationally. In addition to its distribution business, Nivel publishes Golf Car News, a bi-monthly industry magazine targeted at golf car dealers.

ABOUT AMERICAN CAPITAL

American Capital is the only alternative asset management company in the S&P 500. With $19 billion in capital resources under management, 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 euro 5 million to euro 500 million per company in Europe.

As of November 30, 2007, American Capital shareholders have enjoyed a total return of 511% since the Company's IPO, an annualized return of 19%, assuming reinvestment of dividends.  American Capital has paid a total of $1.9 billion in dividends and paid or declared $26.16 dividends per share since going public in August 1997 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 or www.EuropeanCapital.com.

ABOUT AUDAX GROUP

Audax Group, founded in 1999, is a leading investor in middle market companies. With offices in Boston and New York, Audax manages in excess of $3.7 billion of equity, mezzanine debt, and senior loan capital.  In addition to Nivel, American Capital has provided financing in support of other Audax Group acquisitions, including: CIBT Holdings, a leading expeditor of short-term visas, passports and other documents for business and leisure travel; Dynisco LLC, a leading global designer and manufacturer of precision instruments and software for the plastic and rubber processing industry and Cinelease, Inc., a supplier of lighting and grip equipment to the television, feature film, commercial, music video, and event industries

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 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.

This announcement is neither an offer to sell nor a solicitation to buy securities.
This announcement appears as a matter of record only.