News

Bethesda, MD - October 24, 2005 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that Douglas Cooper has joined the Company as Managing Director of the Commercial Mortgage Asset Management Group. Mr. Cooper was Managing Director at Allied Capital Corporation until mid-2005, where he was involved in all aspects of the company's Commercial Mortgage-Backed Securities investment program, including bond investment selection, real estate due diligence, structuring, securitization and surveillance. Mr. Cooper will be responsible for developing a team to manage and invest in commercial mortgage securitizations.

"American Capital is pleased to announce the launch of its new Commercial Mortgage Asset Management Group, to be headed by Doug Cooper, a professional with over 20 years experience in commercial real estate finance," said Chairman, President and CEO Malon Wilkus. "Commercial mortgage asset management offers the opportunity for highly predictable and steady asset management income and current cash returns on equity investments in a granular pool of assets. Consistent with American Capital's initiation of its asset management business with European Capital, the establishment of our Commercial Mortgage Asset Management Group follows significant due diligence and market research. Further, we are leveraging American Capital's strong franchise in the asset backed securities market, where we have pioneered the issuance of middle market Collateralized Loan Obligations, issuing $2.2 billion of bonds backed by $2.7 billion of commercial loans in seven CLOs. Two of these CLOs have been fully repaid; four have received ratings upgrades. We are confident of similar success in commercial mortgage investing."

Mr. Cooper joins American Capital from CWCapital LLC, where he was Managing Director in charge of its Washington office. CWCapital oversaw the May, 2005 acquisition of Allied Capital's CMBS and CDO portfolio by the Caisse de Depot en placement de Quebec. Mr. Cooper has spent his career in the commercial real estate mortgage business, including nine years of direct CMBS due diligence and surveillance experience and has been involved in the investment decisions of over 60 CMBS transactions totaling over $100 billion in underlying loans.

ABOUT AMERICAN CAPITAL

American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $6.7 billion. American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, provides capital directly to private and small public companies and through its asset management business is a manager of debt and equity investments in private companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.

As of September 30, 2005, American Capital shareholders have enjoyed a total return of 407% since the Company's IPO - an annualized return of 22%, assuming reinvestment of dividends. American Capital has paid a total of $868 million in dividends and paid $18.29 dividends per share since its August 1997 IPO 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 our website.

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 Strategies 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.

Contact:
John Erickson, CFO (301) 951-6122
Douglas Cooper, Managing Director (301) 951-6122
Brian Maney, Director, Corporate Communications (301) 951-6122

SOURCE: American Capital Ltd.