FOR IMMEDIATE RELEASE:
December 10, 2007

Contact
Bob Grunewald, Managing Director, Financial Services Group (301) 951-6122
Brian Maney, Director, Corporate Communications (301) 951-6122

AMERICAN CAPITAL COMMITS $60 MILLION TO US EXPRESS LEASING

Bethesda, MD – December 10, 2007 – American Capital Strategies Ltd. (Nasdaq: ACAS) announced today that in the third quarter it committed $60 million in senior subordinated debt to US Express Leasing, Inc. (USXL), an independent equipment leasing company that provides financing to the healthcare, technology, office products, graphic arts and commercial and industrial equipment markets. American Capital’s investment will be used to support USXL’s continued growth.

“With its strong management team and information systems, USXL is a welcome addition to the American Capital Financial Services portfolio,” said Bob Grunewald, American Capital Managing Director, Financial Services Group. “USXL’s established reputation for service has enabled it to become the preferred financing partner of many small to mid-sized equipment dealers and manufacturers. This high level of service is one of the Company’s key competitive advantages.”

Since inception in May 2006, the American Capital Financial Services Group, led by Mr. Grunewald, has invested in six portfolio companies, including: First Capital, a leading provider of secured working capital financing for middle market companies; Velocity Financial Group Inc., a specialty finance company that provides equipment financing and working capital to middle market and venture-backed companies; and Oceana Media Finance LLC, a specialty finance company that provides asset-backed secured financing for the production and marketing of independently produced feature films.

American Capital has invested directly and through its funds under management approximately $11 billion in the last twelve months, approximately $10 billion year to date and approximately $1.6 billion quarter to date.  Not including funds under management, American Capital has invested approximately $8 billion in the last twelve months, approximately $7.3 billion year to date and approximately $1.3 billion quarter to date.  American Capital has assisted in the refinance or syndication of approximately $1.5 billion of senior debt for its portfolio companies in the last twelve months and approximately $850 million from July 2007 to date. For more information about American Capital’s portfolio, click here.

USXL originated its first lease in May 2004 and has since grown its portfolio to include more than 25,000 end users originated through relationships with over 400 equipment vendors. The Parsippany, NJ-based equipment leasing company originates transactions through dealers, distributors and manufacturers.

“We are pleased that American Capital is supporting USXL with its $60 million investment, which will allow us to continue to expand our business,” said Jim McGrane, USXL CEO. “We look forward to working with the American Capital Financial Services Group to take advantage of their experience and knowledge as we continue to grow.”

ABOUT AMERICAN CAPITAL FINANCIAL SERVICES GROUP

The Financial Services Group offers capital solutions for consumer and commercial finance, insurance and asset management companies. The Group invests throughout the capital structure, including senior debt, subordinated debt and equity, and investments up to $800 million in each transaction. Companies interested in learning more about American Capital's Financial Services Group should contact Bob Grunewald, Managing Director, at (301) 951-6122.

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.

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.