INVESTOR RELATIONS

American Capital's Dividend Reinvestment Plan (DRIP)

Pursuant to the Company's Reinvestment Plan (the "Plan"), a stockholder whose shares are registered in his own name will have all distributions reinvested automatically in additional shares by EquiServe, L.P., the plan administrator (the "Plan Administrator"). Stockholders whose shares are held in the name of a broker or other nominee will have distributions reinvested automatically by the broker or the nominee in additional shares under the Plan, unless such a service is not provided by the broker or the nominee or the stockholder elects not to participate in the Plan. Stockholders whose shares are held in the name of a broker or other nominee should contact the broker or nominee for details. A stockholder may terminate participation in the Plan at any time by delivering written notice to the Plan Administrator before the record date of the next dividend or distribution. All distributions to stockholders who do not participate in the Plan will be paid by check mailed directly to the record holder by or under the direction of the Plan Administrator.

When the Company declares a dividend or distribution, stockholders who are participants in the Plan will receive the equivalent of the amount of the dividend or distribution in shares of the Common Stock. The Plan Administrator will buy shares in the open market, on the Nasdaq National Market or elsewhere. Alternatively, the Board of Directors may choose to contribute newly issued shares of Common Stock to the Plan, in lieu of the payment of cash dividends on shares held in the Plan. The Plan Administrator will apply all cash received on account of a dividend or distribution as soon as practicable, but in no event later than 30 days, after the payment date of the dividend or distribution except to the extent necessary to comply with applicable provisions of the federal securities laws. The number of shares to be received by the Plan participants on account of the dividend or distribution will be calculated on the basis of the average price of all shares purchased for that 30 day period, including brokerage commissions, and will be credited to their accounts as of the payment date of the dividend or distribution.

The Plan Administrator will maintain all stockholder accounts in the Plan and will furnish written confirmations of all transactions in the account, including information needed by stockholders for personal and tax records. Shares in the account of each Plan participant will be held by the Plan Administrator in non-certificated form in the name of the participant, and each stockholder's proxy will include shares purchased pursuant to the Plan.

There is no charge to participants for reinvesting dividends and capital gains distributions. The fees of the Plan Administrator for handling the reinvestment of dividends and capital gains distributions will be included in the fee to be paid by the Company to its transfer agent. There will be no brokerage charges with respect to shares issued directly by the Company as a result of dividends or capital gains distributions payable either in shares or in cash. However, each participant will bear a pro rata share of brokerage commissions incurred with respect to the Plan Administrator's open market purchases in connection with the reinvestment of distributions.

The automatic reinvestment of distributions will not relieve participants of any income tax which may be payable on distributions.

Experience under the Plan may indicate that changes are desirable. Accordingly, the Company reserves the right to amend or terminate the Plan as applied to any distribution paid subsequent to written notice of the change sent to participants in the Plan at least 90 days before the record date for the distribution. The Plan also may be amended or terminated by the Plan Administrator with the Company's prior written consent, on at least 90 days' written notice to participants in the Plan. All correspondence concerning the Plan should be directed to the Plan Administrator by mail at 150 Royall Street, mail stop 45-02-62, Canton, MA 02021 or by phone at 1-800-733-5001.