FOR IMMEDIATE RELEASE:
April 14, 2005

Contact
Jeff Schumacher, Senior Vice President, Group Head of Syndications (212) 213-2009
Brian Maney, Director, Corporate Communications (301) 951-6122

AMERICAN CAPITAL ADDS SYNDICATIONS HEAD

Bethesda, MD - April 14, 2005 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that Jeffery Schumacher has joined the Company as Senior Vice President, Group Head of Syndications. Mr. Schumacher joined American Capital from the Royal Bank of Scotland's (RBS) Leveraged Syndications Group, where he was a Senior Vice President responsible for structuring and syndicating middle market leveraged transactions across a broad range of industries. Mr. Schumacher will be primarily responsible for both expanding American Capital's syndication activities for senior debt securities issued by portfolio companies and sourcing similar assets for American Capital. Over the past 18 months, American Capital has sold approximately $300 million of senior debt securities.

"We are very pleased to have Jeff Schumacher, a seasoned loan market professional with 16 years experience, join American Capital as our first syndications head," said American Capital Chairman, President and CEO Malon Wilkus. "Jeff's work will allow American Capital to interact more effectively with the wide range of financing providers for middle market companies and senior loan market investors, thereby allowing us to provide lower cost financing for the private equity firms with whom we work and our portfolio companies."

>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.