Bethesda, MD - June 25, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $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, from Acland Capital Investissement and management. American Capital's investment takes the form of senior debt, senior and junior subordinated debt and common and redeemable preferred equity. American Capital is also providing a revolving credit facility. As part of the transaction, Acland and synOdys management also acquired an ownership interest in Global Dosimetry Solutions Inc., an American Capital portfolio company and a provider of radiation dosimetry services, and are maintaining a significant equity investment in synOdys. American Capital owns approximately 80% of synOdys on a fully diluted basis.

American Capital's other 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, and Imaging and Sensing Technology Corporation, a leading designer and assembler of equipment for use in nuclear power plants.

"American Capital is very excited about our acquisition of synOdys, a leading middle market company with capacity for growth that builds on our industry expertise," said American Capital COO Ira Wagner. "This is our 15th announced new portfolio investment of the year and the fifth buyout."

American Capital has invested over $1.1 billion in the last twelve months and over $500 million year to date. For more information about American Capital's portfolio, click here.

"synOdys' worldwide technological leadership in radiation detection equipment makes it a preferred provider to its large installed base of dosimeters and radioactivity monitoring systems, resulting in a stable and repeat base of revenues," said American Capital Managing Director Robert Klein. "synOdys' leading market position will enable it to enjoy the benefits of several significant industry trends, including rapidly growing end market demand; the upgrading of aging nuclear power plants; construction of new plants in developing countries; increasing demand for dosimeters in the defense market; and a growing demand in homeland security, triggered by the elevated worldwide threat of nuclear weapons. In addition, we are impressed with the strong management team, led by CEO Philippe Destenbert, who in recent years has successfully executed his growth strategy for the company through complimentary acquisitions and the winning of new customer accounts."

"Our investment in synOdys compliments our current portfolio company, Global Dosimetry Solutions, a provider of analytical radiation monitoring services," said American Capital Managing Director Brian Graff. "Both synOdys and Global Dosimetry Solutions are expected to benefit in cost savings and revenue growth through cross-selling opportunities, geographic distribution agreements and the combined use of their unique technologies."

Founded in 1965, synOdys' principal products are electronic dosimeters, badges and readers that provide real time measurements of radiation dosages and emit an alarm when a pre-set limit is exceeded, and radioactivity monitoring systems (RMS), fixed systems that monitor radiation levels continuously in a particular location over time, specifically nuclear power plants, and report data to a centralized software system. The company also produces surface radioactive contamination monitoring products, including hand-held detectors and survey equipment, full body monitors and large portal monitors, and also provides a range of services for all of its products, including repair, calibration, maintenance, upgrades, spare parts and training. Customers include nuclear power plants and research laboratories, militaries, civil governments for homeland defense purposes and medical customers. synOdys has five operating facilities in France, Germany, Finland and the United States, employs approximately 400 and recorded annual sales of over US$80 million in 2003. Pictured above is one of synOdys' personal electronic dosimeters, calibrated to provide a warning in the event that the radiation dose has exceeded a predetermined safe limit.

"American Capital's valuable knowledge of the radiation industry and financing capabilities made it the perfect investment partner as we expand our business, increasing new product developments and our geographic penetration," said synOdys CEO Philippe Destenbert. "With American Capital's support, we are also in an excellent position to benefit from increasing demand across markets, specifically in the rapidly developing homeland security market."

synOdys is the second largest American Capital investment, with Directed Electronics Inc., at $74 million, the largest. They each represent approximately 3% of American Capital's assets.

"As we have steadily increased our business and grown our balance sheet, we have been able to increase our investments in individual portfolio companies while reducing the size of our investment per company as a percentage of our assets," said American Capital CFO John Erickson. "Therefore, our concentration risk is declining while company investment size is growing. Additionally, increasing the size of our largest investments is resulting in adding stronger, better managed companies to our portfolio."

As of May 31, 2004, American Capital shareholders have enjoyed a total return of 219% since the Company's IPO - an annualized return of 19%, assuming reinvestment of dividends. American Capital has declared a total of $14.52 per share in dividends since its August 1997 IPO.

American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $3 billion. American Capital is an investor in and sponsor of management and employee buyouts; invests in private equity sponsored buyouts, and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.

Companies interested in learning more about American Capital's flexible financing should contact Mark Opel, Principal and Senior Vice President, Business Development, at (800) 248-9340, or visit our website.

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 or national 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
Brian Graff, Managing Director (212) 213-2009
Brian Maney, Director, Corporate Communications (301) 951-6122

SOURCE: American Capital Ltd.