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American Capital Announces Form of Previously Declared Dividend and Results of Dividend Elections

BETHESDA, Md., July 30 /PRNewswire-FirstCall/ -- American Capital Ltd. (Nasdaq: ACAS) (the "Company") announced today the form in which the dividend declared by its Board of Directors on June 11, 2009 will be paid and the results of its stockholders' elections related to the dividend. The dividend of $1.07 per share is payable on August 7, 2009, to stockholders of record as of the close of business on June 22, 2009, with an ex-dividend date of June 18, 2009. Stockholders had until July 24, 2009 to elect whether to receive the dividend in cash (up to an aggregate maximum of 10% of the total dividend paid) or in shares of common stock. Due to the original terms of the dividend, stockholders who elected to receive cash will receive a combination of cash and common stock.

The dividend will consist of approximately $24 million in cash and approximately 67 million shares of common stock or 30% of American Capital's shares prior to the dividend. The amount of cash elected to be received was greater than the cash limit of 10% of the aggregate dividend amount, thus resulting in the payment of a combination of cash and stock to stockholders who elected to receive cash. The number of shares of common stock comprising the stock portion was calculated based on a price of $3.2199 per share, the volume weighted trading price per share of the common stock on the NASDAQ Global Select Market on July 27, 28 and 29, 2009.

Summarized results of the dividend elections are as follows:

-- Stockholders who elected to receive the dividend solely in shares of common stock and stockholders who did not make an election will receive 0.332 shares of common stock for each share of common stock they owned on the record date. Holders of approximately 42% of American Capital's common stock elected to receive only stock or did not make an election.

-- Stockholders electing to receive the dividend in all cash, will receive cash in the amount of $0.185 per share or 17% of the $1.07 dividend and 0.275 shares of common stock or 83% of the total dividend for each share of common stock they owned on the record date.

-- Fractional shares will be issued, if applicable.

Stockholders who hold their shares through a bank, broker or nominee and have questions regarding the dividend should contact their bank, broker or nominee directly.

Registered stockholders with questions regarding the dividend may call American Capital's transfer agent, Computershare Trust Company, N.A. at (800) 733-5001.

For further information or questions, please call our Investor Relations Department at (301) 951-5917 or send an email to IR@AmericanCapital.com.

ABOUT AMERICAN CAPITAL

American Capital is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $11 billion(1) in capital resources under management and ten offices in the U.S., Europe and Asia. For further information, please refer to www.AmericanCapital.com.

(1) As of March 31, 2009.

Contact:
Investors - (301) 951-5917

SOURCE: American Capital Ltd.

www.americancapital.com