News

Bethesda, MD - January 25, 2006 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today the formation of Mirion Technologies Inc., through the merger of its U.S. portfolio companies Global Dosimetry Solutions Inc. and Imaging and Sensing Technology Corporation with its French portfolio company synOdys Group SA. Tom Logan, the prior CEO of Global Dosimetry, will lead the combined company as its CEO. No new financing is being provided as part of this merger. American Capital investments in these companies took the form of subordinated debt and preferred and common equity and total $244 million. American Capital is the majority shareholder and Company management owns a minority of the common equity.

"The merger of three highly profitable leaders in the radiation measurement and protection industry creates a dominant global player with leading positions in the nuclear power instrumentation, civil and military defense, and health physics markets," said American Capital Chief Operating Officer Ira Wagner. "This transaction is emblematic of American Capital's success in building a franchise in the middle market. With leadership provided by our New York Investment Team headed by Robert Klein, our Business Development and Marketing Team, Financial Analysis and Compliance Team (FACT), Legal Department and Operations Team all contributed to building and creating value in the formation of Mirion Technologies."

American Capital has invested approximately $3.2 billion in 2005, approximately $1 billion in the fourth quarter 2005 and $77 million year to date. These amounts do not include American Capital's unfunded equity commitment to its affiliate European Capital. For more information about American Capital's portfolio, click here.

"The establishment of Mirion Technologies is the next step in the evolution of a market leader. The merger of these three companies provides revenue diversification across customers, product lines, end markets and geography. In addition, the merger positions the three companies to take advantage of cross selling opportunities, create cost savings through consolidation, and provides for the enhanced sharing of best practices and research and development innovations," said American Capital Managing Director Robert Klein.

"We are excited to back management as they extend their leadership positions in these dynamic markets, particularly as it relates to the imminent buildout of Chinese nuclear capacity," added American Capital Principal Todd Wilson.

"Mirion Technologies is well-positioned to extend its global franchise, based upon the renaissance of the global nuclear power industry, continued global demands for homeland security and defense solutions, and increased utilization of radiological medical applications," said Mirion Technologies Chairman and CEO Tom Logan. "We expect to sustain our legacy of strong organic and acquisitive growth as these markets continue to evolve."

In 2003, American Capital invested $49 million to acquire Global Dosimetry Solutions, one of the world's largest providers of radiation dosimetry services. In 2004, American Capital invested $45 million in the acquisition of Imaging and Sensing Technology Corporation, a leading designer and assembler of equipment for use in nuclear power plants, and $72 million in the acquisition of synOdys Group SA, a leading manufacturer of systems and equipment to protect people and goods from nuclear, biological and chemical risks. In addition, American Capital has financed three add-on acquisitions across the companies that now comprise Mirion Technologies.

American Capital investments in companies serving the nuclear power industry also include PaR Nuclear Holding Company Inc., a leader in the design, assembly, installation and service of large-scale, high-precision robotic systems.

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 December 31, 2005, American Capital shareholders have enjoyed a total return of 412% since the Company's IPO - an annualized return of 22%, 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 MIRION TECHNOLOGIES
Mirion Technologies generated approximately $150 million in revenue from a diverse global client base in 2005. The Company employs 742 people worldwide, at its facilities in France, Germany, the United Kingdom, Finland, China, Canada and the United States. Mirion Technologies will be headquartered in the San Francisco area.

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.

Contact:
Robert Klein, Managing Director (212) 213-2009
Todd Wilson, Principal (212) 213-2009
Brian Maney, Director, Corporate Communications (301) 951-6122

SOURCE: American Capital Ltd.