News

Bethesda, MD - February 1, 2006 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today investments totaling $93 million made in the fourth quarter of 2005 in two portfolio companies.

One of the investments involved an American Capital sponsored buyout of SAV Holdings Inc. ("SAV"), the nation's second largest outsourced provider of audio visual equipment and related technical support services to hotels and resorts. The other investment was in H-Cube Inc., a portfolio company of GTCR Golder Rauner LLC. H-Cube is the parent company to Zenta Global Ltd., an existing American Capital portfolio company and a U.S.-based leader in high quality business process outsourcing ("BPO") services. The investment supports H-Cube's acquisition of Global Realty Outsourcing Inc. ("GRO"), a leading outsourcing partner to the commercial and residential real estate and financial services markets. American Capital's investments in SAV Holdings and H-Cube include senior debt, senior subordinated debt and redeemable preferred and common equity. In addition to American Capital's investment in SAV, LaSalle Bank is providing a revolving credit facility and, along with Wachovia Bank, is investing in a senior term loan. SAV's management is also investing in the equity.

"Our investment in SAV illustrates our buyout expertise and ability to work with management teams to create value," said American Capital Chief Operating Officer Ira Wagner. "Our add-on investment supporting the combination of Zenta and GRO demonstrates our continued support of our portfolio companies and ability to work efficiently with outstanding private equity firms like GTCR, with whom we've built a strong and long-lasting relationship through seven investments."

American Capital has invested approximately $3.2 billion in 2005, approximately $1 billion in the fourth quarter 2005 and $38 million year to date. These amounts do not include American Capital's unfunded equity commitment and debt funded to its portfolio company European Capital.

For more information about American Capital's portfolio, click here.

"SAV began the concept of providing in-house audio visual equipment and services to hotel clients. With its cutting edge technology and skilled technicans that undergo a robust training program, SAV has developed a national reputation for consistent quality service," said American Capital Principal Jonathan Leiman. "SAV's success is evident by its high customer retention rates and attractive long-term contracts with many of the finest hotels in the U.S. SAV's leading market position, growing market share, attractive growth opportunities and scalable platform bode well for its continued success. In addition, we are confident in SAV's experienced and passionate management team that has performed well over the years and positioned SAV for future growth in the hospitality market."

"GRO pioneered the concept of offshoring sophisticated real estate services. The Company remains the leading real estate outsourcing partner for U.S. financial institutions, with a strong brand name and robust revenue growth opportunities," said American Capital Principal Demian Kircher. "GRO's capabilities, breadth of service offerings and niche market position make it an attractive add-on investment to H-Cube. GRO's real estate platform extends H-Cube's expertise and product offering within the financial services industry, giving the combined entity significant BPO scale with a compelling value proposition and an impressive customer base. In addition, with complementary capabilities, including voice and data, that together offer an end-to-end product suite, the combination is expected to result in significant cost and revenue synergies. As the BPO industry is expected to experience substantial growth, the new, larger entity will be in an excellent position to build a strong global brand and meet worldwide customer demands. We're confident in the industry leading management teams from GRO and Zenta, in addition to the leadership of GTCR and H-Cube, and believe together they will focus efforts on expanding BPO operations in various geographies around the globe."

SAV HOLDINGS INC.
Founded in 1937, SAV is the nation's second largest outsourced provider of audio visual equipment and related technical support services to prominent hotels and resorts in nearly 50 major cities across the U.S. Through long-term contracts with premium hotels and resorts, SAV provides on-site services to its customers including projection, audio, lighting and auxiliary equipment rental as well as technical support to end users, which typically consist of large corporations, associations and other interest groups holding meetings and events at these properties. The Company operates two main lines of business: Hotel Services and Event Services. The customer base predominantly consists of upscale convention-focused hotels. In addition to its St. Louis, Missouri headquarters, the Company has regional offices in Washington, D.C., Los Angeles, San Francisco, Orlando, Miami, Phoenix, San Diego and Chicago.

"We're looking forward to a long, productive and mutually beneficial partnership with American Capital," said SAV President and COO Greg Diekemper. "With a national platform, SAV plans to further penetrate existing markets as well as drive expansion with national hotel operators in regions where it currently does not operate. We believe that with the support of American Capital and our investment partners, we can achieve this growth."

GLOBAL REALTY OUTSOURCING
Founded in 2000, GRO, headquartered in Stamford, Connecticut with principal operations in Chennai, India, is a leading real estate outsourcing partner to the commercial and residential real estate and financial services markets. The Company provides its customers the ability to outsource specialized, high-level, complex work processes. GRO's services are segmented into five operating groups - capital markets, asset management, commercial servicing, residential services and residential master servicing. The Company targets the analytical processes related to the investment, financing and servicing of commercial real estate assets and the servicing and processing of residential mortgages. GRO serves brand name financial institutions and real estate firms, some of which are Fortune 500 companies. GRO employs approximately 700 employees in operating facilities in Connecticut, North Carolina and Chennai, India.

ZENTA GLOBAL LTD.
American Capital first invested in Zenta in May 2005, supporting the acquisition of Zenta by H-Cube. H-Cube was formed in 2005 by GTCR and Henry Hortenstine, a former Executive Vice President of Affiliated Computer Services Inc., a Fortune 500 global business process outsourcing company. American Capital's investment took the form of a senior term loan and a modest equity co-investment alongside GTCR and Zenta senior management. American Capital also committed additional debt financing to support the Company's anticipated growth and for other corporate purposes.

Zenta, founded in 2001 and headquartered in Wayne, Pennsylvania, with principal operating offices in India, provides business process outsourcing services. The Company is the sixth largest Indian BPO and one of the largest non-captive Indian BPO service providers in its market. Zenta currently has over 2,600 full time employees in its operational facilities in Mumbai, India. Zenta's business offering includes credit card servicing, mortgage servicing, accounts receivable management and insurance claims management. Zenta is ISO-9001 certified and was recently rated among the top 10 of India's BPO companies by NASSCOM, the leading organization for public policy for the Indian software industry.

"We've worked with American Capital in previous investments and they've always been a reliable and trusted source of mezzanine financing," said GTCR Principal Collin Roche. "We knew we could count on them again to support H-Cube in their strategic acquisition of GRO. The combination of these two BPOs is expected to result in multiple benefits for both companies, creating an upper-tier BPO platform with approximately 4,000 employees and a significantly broader service offering consisting of credit card servicing, residential real estate services, commercial real estate services, accounts receivable management and healthcare claims processing. We're excited about the potential business opportunities that this combination brings."

For more information about Zenta's unrelenting commitment to quality, click here.

ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $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 and commercial loan obligations. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations.

As of January 31, 2006, American Capital shareholders have enjoyed a total an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $961 million in dividends and paid $19.11 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.

ABOUT GTCR GOLDER RAUNER LLC
Founded in 1980, GTCR Golder Rauner is a leading private equity investment firm and long-term strategic partner for outstanding management teams. GTCR currently manages more than $6 billion of equity capital invested in a wide range of companies and industries.

ABOUT H-CUBE INC.
Based in Dallas, Texas, H-Cube is a business process outsourcing company focused on acquiring and operating business process and technology-based outsourcing companies. Henry Hortenstine is Chief Executive Officer; John London is Chief Financial Officer.

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.

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

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

Contact:
L. Thomas Gregory, Managing Director (312) 681-7400
Demian Kircher, Principal (312) 681-7400
Jonathan Leiman, Principal (312) 681-7400
Brian Maney, Director, Corporate Communications (301) 951-6122

SOURCE: American Capital Ltd.