FOR IMMEDIATE RELEASE:
April 12, 2005

Contact
Kimberly Chu, Vice President (310) 806-6280
Brian Maney, Director, Corporate Communications (301) 951-6122

AMERICAN CAPITAL INVESTS $50 MILLION IN BUYOUT OF ELECTRO-COMPONENT ASSEMBLY COMPANY

Bethesda, MD - April 12, 2005 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $50 million in the buyout of Stamping Specialties Corporation, doing business as Electro-Component Assembly Company ("ECA"), the leading firm specializing in the design, development and manufacturing of disposable torque wrenches, hexagon keys and solid wrenches used in the installation of pacemakers, defibrillators and other implantable medical devices. American Capital's investment takes the form of senior term loans, senior subordinated debt and common equity. American Capital is also providing a revolving credit facility. ECA founders will retain a seller note as part of the transaction. Post close, American Capital holds a controlling equity stake in ECA.

"We are proud to announce our buyout of ECA, a pioneer and leader in its niche market. With this investment, we are supporting a manufacturer of a critical medical device component with consistent demand for the foreseeable future," said American Capital COO Ira Wagner. "Our investment in ECA demonstrates our ability to locate excellent niche manufacturers, conduct quick and thorough due diligence and fund the entire capital structure of an investment."

American Capital has invested over $2.2 billion in the last twelve months, nearly $460 million year to date and nearly $60 million quarter to date. For more information about American Capital's portfolio click here.

"ECA has solidified its market position through its significant competitive advantages: strong customer base consisting of leading medical device OEMs, excellent product reputation and high barriers to entry, including strict regulatory requirements, arduous certification processes, engineering ingenuity and a 100% quality standard," said American Capital Vice President Kimberly Chu.

Founded in 1979, Newbury Park, CA-headquartered ECA is a manufacturer of disposable torque wrenches, hexagon keys and solid wrenches specifically designed for tightening and loosening screws during the installation of pacemakers, defibrillators and other implantable medical devices. The Company distributes its products to pacemaker and defibrillator OEMs who then package the appropriate wrench or key with their implantable cardiac devices. ECA sells its products to the world's largest manufacturers of implantable cardiac devices, including Medtronic Inc. (NYSE:MDT), Guidant Corporation (NYSE: GDT) and St. Jude Medical Inc. (NYSE: STJ). Pictured above is an ECA torque wrench, an essential tool used to tighten screws that are used to secure delicate electrical leads connected to a pacemaker or defibrillator.

For more information about ECA's market leading wrenches used in implantable cardiac devices click here.

ABOUT AMERICAN CAPITAL

American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $5.2 billion. American Capital is an investor in and sponsor of management and employee buyouts, invests in private equity 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.

As of March 31, 2005, American Capital shareholders have enjoyed a total return of 311% since the Company's IPO - an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $717 million in dividends and paid $16.76 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.

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.