FOR IMMEDIATE RELEASE:
June 24, 2005

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Robert Klein, Managing Director (212) 213-2009
Dale Stohr, Principal (212) 213-2009
Brian Maney, Director, Corporate Communications (301) 951-6122

NPC HAS OPPORTUNITIES IN THE PIPELINE

By Maureen Flanagan

NPC, Inc., is a leading designer and manufacturer of flexible, rubber pipe-to-manhole connectors for sanitary sewer, storm water and drainage systems. The company's connectors are a critical component of sanitary sewer systems, providing a critical watertight seal between inlet and outlet pipes and concrete manholes. NPC's flexible connectors are sold to concrete precasters who produce manholes, box culverts, storm-drain structures and septic tanks. Since its founding in 1972, the Milford, NH-based company has captured a dominant share of its core market.

In a June 22, 2005 buyout, NPC was acquired by American Capital Strategies, Ltd. (Nasdaq: ACAS). The transaction was principally financed by a $30 million financing package provided by American Capital.

"NPC's range and depth of products offer a one-stop shop for manhole precasters," said Randy Snyder, the company's President and CEO. "With its dominant market position, worldwide distribution network and strong industry fundamentals, the company is well-positioned for multiple end product and market growth opportunities."

NPC's primary product is the Kor-N-Seal® pipe-to-manhole flexible connector, or "Boot" (pictured at left), which are known throughout the precast industry for dependability and performance. Connecting sewer pipes to concrete manholes, Boots create a water tight seal that prevents sewage leakage and groundwater infiltration. Constructed of rubber, Boots provide the necessary flexibility to withstand ground movement due to settling, shifting and vibration. They are designed to last for more than 50 years and are manufactured to meet or exceed American Society for Testing Materials specifications.

In addition to its core connectors business, NPC manufacturers a broad product line of specialized equipment and products used in producing, testing and repairing manholes and pipe. The company's line of diamond core-drilling machines, sold under the Hydrokor and Vertakor brands, are used to drill high-precision inlet and outlet access holes into the sides of precast concrete manholes. A line of steel holeformers is offered for smaller precaster operators. The company also produces diamond drill tools (drill bits) used for coring holes in precast manholes. These tools are optimized for the specific mineral characteristics of customers' cement formulas, thereby enabling a more consistent, higher precision hole and longer lasting operation than generic drills. Pictured above is the Hydrokor® III, a heavy-duty diamond core-drilling machine. NPC also produces various types of vacuum testers which enable precasters and contractors to test the water tightness of manholes and pipe facilitating quick repair prior to project completion.

NPC's fastest growing business line is its specialty products for rehabilitating the country's aging sanitary infrastructure. The company's FlexRib Chimney Seal and internal joint seals are used to repair leaking manhole chimneys and pipe joints and prevent inflow and infiltration of groundwater into the sewer system. The additional volume from groundwater infiltration costs municipalities millions of dollars a year in unnecessary water treatment expenses and leads to billions of gallons of sewer overflows annually. NPC's rehabilitation products provide a highly effective, easy to install and cost efficient solution to repairing sewer systems which would otherwise have to be rehabilitated with more expensive and disruptive technologies.

Finally, through its wholly owned subsidiary, Bidco Sealants, which it acquired in August 2002, NPC manufacturers and distributes butyl-based, mastic sealants and concrete fiber. Bidco sealants form a permanent bond to a wide variety of substrates and are applied externally to seal joints in a variety of precast concrete structures.

"NPC is well known for its superior product quality, consistency and performance, as well as timely delivery response and excellent customer service," said American Capital Principal Dale Stohr. "Its products are critical to the sanitary sewer infrastructure and will benefit from increasing adoption in stormwater systems. NPC will also benefit as municipalities strive to meet the rapidly growing need to rehabilitate their aging sewer infrastructure."

In the June 2005 buyout, American Capital's investment consisted of a revolving credit facility, senior term C loan, senior subordinated debt and equity. The NPC senior management team reinvested a portion of their equity for a continued ownership stake.

Since 1997 American Capital has invested more than $5 billion in the middle market. It currently manages a portfolio of more than 130 companies in a wide range of industries. For more information about American Capital's portfolio click here.

NPC is the leading player in the $28 million North American sewer pipe-to-manhole connector market. Additional market growth is anticipated from increased penetration in the stormwater market as engineers specify the use of boot connections in new stormwater sewers to limit problems such as sink holes and road collapses which can be caused by inflow and infiltration of groundwater and soil particles.

The country's decaying sanitary sewer infrastructure presents additional opportunities for NPC. Of the 600,000 miles of sanitary sewer pipe in the U.S., about half was installed in the three decades following WWII and is now reaching the end of its useful life. Deteriorated systems have limited capacity to keep up with increased sewage flows from population growth, are more expensive to operate and maintain, and cause major public health issue as billions of gallons of untreated sewage overflow into U.S. surface waters each year. According to a 2000 U.S. Environmental Protection Agency report, the nation's total documented capital needs for sewer replacement and rehabilitation and inflow and infiltration correction were approximately $25 billion.

With its dominant market position, solid fundamentals and opportunities for growth, NPC provides a vital support to wastewater and drainage systems throughout the country.