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SHAREHOLDER UPDATES

Q2 2008 Shareholder Presentation

Investor Conference and Annual Meeting – New York, NY – May 19th

2007 Annual Report

AMERICAN CAPITAL NEWS

American Capital Declares $1.05 Q3 2008 Dividend, Reports $0.71 NOI and $0.95 Realized Earnings in Q2 2008

American Capital Announces Senior Management Expansion

More American Capital News »

PRESS COVERAGE

Buyouts Beat: Five Questions with Bowen Diehl, Buyouts

American Capital Portfolio Company Confluence's new CEO aims to boost sales, The Greenville News

More Press Coverage »

NEWSLETTER

American Capital Newsletter

STOCK RETURNS CALCULATOR

Calculate Returns On Your
American Capital Stock

ACAS Stock Returns

* Includes Dividends Reinvested

INVESTOR RELATIONS

Tax Characterization of 2007 Dividends

Information on dividends paid by American Capital, Ltd. (Nasdaq: ACAS) for 2007 is provided below.

Record Date
Payment Date
Distribution Rate per Share
Ordinary Dividends
%
Distributed Capital Gain
%
Return of Capital
%
Non-Qualified Dividend
Qualified Dividend
3/2/2007 4/2/2007 $0.89 100% 0% 0% $0.89 $0.00
6/11/2007 7/2/2007 $0.91 100% 0% 0% $0.91 $0.00
9/7/2007 10/1/2007 $0.92 100% 0% 0% $0.89 $0.03
12/7/2007 1/16/2008 $1.00 100% 0% 0% $0.90 $0.10
Total $3.72 100% 0% 0% $3.59 $0.13


American Capital, Ltd.’s 2007 dividends of $3.72 per share were a distribution of ordinary income for federal income tax purposes. Of its 2007 ordinary dividends, $3.59 per share were non-qualifying dividends and $0.13 per share were qualified dividends. The $0.13 per share of qualified dividends reflect qualified dividend income received by American Capital from portfolio companies in 2007.

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. 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.