FOR IMMEDIATE RELEASE:
January 25, 2008

Contact
Sean Eagle, Principal, Buyouts (301) 951-6122
Justin DuFour, Vice President, Buyouts (301) 951-6122
Brian Maney, Director, Corporate Communications (301) 951-6122

AMERICAN CAPITAL INVESTS IN THE ONE STOP BUYOUT™ OF TRAVEL DOCUMENT EXPEDITOR CIBT

Bethesda, MD – January 25, 2008 – American Capital Strategies Ltd. (Nasdaq: ACAS) announced today that it has sponsored and invested in the One Stop Buyout™ of its portfolio company CIBT Holdings Inc., the world's largest expeditor of short-term visas, passports and other documents for business and leisure travel.  American Capital’s new 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 and an acquisition facility.  CIBT management is investing equity in the company.

American Capital first invested in CIBT in May 2006, providing $74 million in a revolving line of credit, unitranche term debt and an acquisition facility to support Audax Group’s acquisition of CIBT.  American Capital’s previous $74 million investment was fully repaid in connection with the buyout.  For more information about American Capital’s initial investment in CIBT, click here.

“We are pleased to support the growth of our portfolio company CIBT through this One Stop Buyout™,” said American Capital Regional Managing Director Brian Graff.  “Since our first investment in the company in 2006, CIBT has expanded substantially, completing eight add-on acquisitions.  CIBT’s ability to acquire companies will be significantly enhanced by having American Capital as a financial partner given our one stop financing capability.”

American Capital invested directly and through its funds under management approximately $11 billion in 2007, approximately $4 billion from June 30, 2007 to December 31, 2007, and over $2 billion in the fourth quarter of 2007.  Not including funds under management, American Capital invested approximately $8 billion in 2007, over $3 billion from June 30, 2007 to December 31, 2007 (representing approximately 31% of its June 30, 2007 investments outstanding at fair value) and approximately $2 billion in the fourth quarter of 2007.  Not including funds under management, American Capital received approximately $5 billion in total amortizations, prepayments and exits in 2007.  American Capital assisted in the refinance or syndication of approximately $2 billion of senior debt for its portfolio companies in 2007 and approximately $1 billion from June 30, 2007 to December 31, 2007.  For more information about American Capital’s portfolio, click here.

“We have a unique knowledge of the company since it has been a part of our portfolio,” said Sean Eagle, American Capital Principal.  “CIBT’s leading market position, diversity of customer relationships and the valuable service the company provides to customers and travel management companies contribute to our confidence in this investment.”

“We plan to help CIBT benefit from the strong growth projected in the international travel industry,” Justin DuFour, American Capital Vice President.  “Globalization, increased leisure travel and growing business travel to visa-requiring countries such as India and China will continue to drive demand for CIBT’s services.”

Founded in 1989, CIBT operates 28 locations in four countries.  It is the largest travel document expeditor in the U.S., U.K. and Germany, which are, respectively, the three largest outbound travel markets worldwide.  CIBT expedites the procurement of visas, passports, international driver's licenses and other specialized documents and also rents global cellular and satellite phones.  The company processes documents for a large and diverse customer base including Fortune 500 companies, major travel management companies, tour operators, cruise lines and large government agencies.  In 2007, the company processed over 800,000 visas, passports and other travel documents.  CIBT is based in McLean, VA.

“We are excited to partner again with American Capital in this transaction as their financial resources will allow us to expand our market presence in the U.S. and internationally,” said Jeff Fine, CIBT President and CEO.  “American Capital’s speed, flexible investment mandate and one stop financing capability made them our clear choice for a partner.”

ABOUT AMERICAN CAPITAL

American Capital is the only alternative asset management company in the S&P 500. With $20 billion in capital resources under management¹, 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.

As of December 31, 2007, American Capital shareholders have enjoyed a total return of 452% since the Company's IPO, an annualized return of 18%, assuming reinvestment of dividends.  American Capital has paid a total of $2.1 billion in dividends and paid $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.

¹Capital resources under management is an estimate of internally and externally managed assets and available capital resources as of November 30, 2007 and does not include any fair value adjustments subsequent to September 30, 2007.

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.