|American Capital Announces Tax Status of 2008 Dividends|
Bethesda, MD – American Capital Ltd. (Nasdaq: ACAS) announced today that its 2008 distributions of $3.09 per share consisted of $2.39 per share of ordinary income and $0.70 per share of long-term capital gain distributions for federal income tax purposes. Stockholders receiving long-term capital gain distributions may receive preferential tax rates on such income. American Capital also announced that of its 2008 ordinary dividends, $2.38 per share were non-qualifying dividends and $0.01 per share were qualified dividends. The $0.01 per share of qualified dividends reflect qualified dividend income received by American Capital from portfolio companies in 2008. Qualified dividend income is dividend income received from qualified domestic and foreign corporations. Qualified dividend income is taxed to stockholders at the rates that apply to capital gains. Please consult your tax advisors.
American Capital stockholders should receive IRS Form 1099-DIV containing this information from their brokers, transfer agents or other institutions.
American Capital must make certain distributions of its taxable income in order to maintain its tax status as a regulated investment company. Investors can refer to the Company's most recent report on SEC Form 10-K for more information about its tax status. American Capital reports the estimated tax characteristics of each dividend when announced, while the actual tax characteristics of each year's dividends are reported annually to stockholders on Form 1099-DIV.
Information on dividends paid by American Capital for 2008 is provided below.
ABOUT AMERICAN CAPITAL
American Capital, with $17 billion in capital resources under management(1), is the only private equity fund and the largest alternative asset management company in the S&P 500. American Capital, both directly and through its global asset management business, originates, underwrites and manages investments in private equity, leveraged finance, real estate and structured products. American Capital and its affiliates invest from $5 million to $400 million per company in North America and €5 million to €100 million per company in Europe. American Capital was founded in 1986 and currently has 11 offices in the U.S., Europe and Asia.
(1) As of September 30, 2008.
Contact: Amanda Cuthbertson, Director, Investor Relations (301) 951-6122
SOURCE: American Capital Ltd.www.americancapital.com