FOR IMMEDIATE RELEASE:
June 6, 2005

Contact
John Erickson, Chief Financial Officer (301) 951-6122
Tom McHale, Vice President, Finance and Investor Relations (301) 951-6122

AMERICAN CAPITAL ENCOURAGES STOCKHOLDERS TO SUBMIT VOTING INSTRUCTIONS FOR ITS ANNUAL MEETING

Bethesda, MD - June 6, 2005 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that it is encouraging all stockholders to submit promptly their voting instructions for the annual meeting of stockholders to be held on June 20, 2005. Stockholders who have not yet voted may still vote in advance of the meeting, either by telephone or Internet, as described below. Even if stockholders have returned their voting instruction forms through the mail, they may use the telephone or Internet to ensure that their vote is counted.

One of the matters under consideration at the meeting, approval of an amendment to American Capital's Fundamental Policies, requires an affirmative vote of a majority of all of the Company's outstanding voting securities, regardless of whether the holders of such shares are represented in person or by proxy at the annual meeting. To date, a total of 35 million shares have been voted in favor of this proposal and 2 million shares against. The affirmative votes of 46 million shares are necessary for the matter to pass. Stockholders should review the Company's proxy statement for further information on this matter and the other matters to be considered at the meeting.

Unlike certain other matters to be considered at the meeting, brokers will not vote shares on the Fundamental Policies without specific stockholder instructions. Failure to receive sufficient votes on the matter could require American Capital to incur additional proxy solicitation costs.

American Capital has engaged Georgeson Shareholder Communications Inc., a proxy solicitation firm, to contact stockholders by telephone to encourage voting. Many stockholders have received these calls over the past few days.

INSTRUCTIONS FOR VOTING BY PHONE
Using a touch-tone telephone, call the toll-free number which appears on your Voting Instruction Form and follow these four steps:

1. Read the American Capital Strategies Ltd. Proxy Statement and enclosed Voting Instruction Form.
2. Call the toll-free number located on your Voting Instruction Form.
3. Enter your 12-digit Control Number located on your Voting Instruction Form.
4. Follow the recorded instructions.

INSTRUCTIONS FOR VOTING ONLINE

1. Read the American Capital Strategies Ltd. Proxy Statement and enclosed Voting Instruction Form.
2. Go to the website www.proxyvote.com.
3. Enter your 12-digit Control Number located on your Voting Instruction Form.
4. Follow the instructions.

INSTRUCTIONS FOR VOTING IF YOU HAVE MAILED YOUR VOTE OR DO NOT HAVE YOUR BALLOT

1. Contact Georgeson Shareholder Communications Inc. at 800-790-6795 in order to vote your proxy.

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 May 31, 2005, American Capital shareholders have enjoyed a total return of 364% since the Company's IPO - an annualized return of 22%, assuming reinvestment of dividends. American Capital outperformed 86%, 72%, 85% and 91% of all U.S. public companies with a current market capitalization greater than $1 billion^* in the one-year, three-years, five-years and the approximately seven and a half years since the IPO, in each case ending May 31, 2005. American Capital has paid a total of $717 million in dividends and paid or declared $17.51 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.

^*Figures were updated on June 28, 2005

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.