FOR IMMEDIATE RELEASE:
November 21, 2005

Contact
Frank Do, Managing Director (310) 806-6280
Kimberly Reed, Vice President (310) 806-6280
Brian Maney, Director, Corporate Communications (301) 951-6122

AMERICAN CAPITAL INVESTS IN VALUE PLASTICS

Bethesda, MD - November 21, 2005 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested in the recapitalization of Value Plastics Inc., a leading designer and manufacturer of branded, disposable fluid connectors used mainly in medical applications. American Capital's investment takes the form of senior term loans, senior and junior subordinated debt and common equity. American Capital is also providing a revolving credit facility. Value Plastics management is investing in the equity and will continue to manage the Company. Post close, American Capital owns a controlling interest in Value Plastics with the Company's management maintaining a significant ownership interest.

"American Capital's one-stop financing in the recapitalization of Value Plastics reflects our ability to fund senior debt, subordinated debt and equity in support of a dedicated and experienced management team's growth ambitions," said American Capital Chief Operating Officer Ira Wagner. "As our Value Plastics investment demonstrates, American Capital continues to locate excellent middle market companies with leading positions in growing niche markets and consistently strong financial performance. This is our 17th investment in the healthcare industry and we look forward to building a portfolio in the growing medical equipment sector within the healthcare industry."

American Capital has invested over $3.2 billion in the last twelve months, over $2.5 billion year to date and $400 million quarter to date. These amounts do not include American Capital's unfunded equity commitment to its affiliate European Capital. For more information about American Capital's portfolio click here.

"Value Plastics is a leading supplier of fluid management components for healthcare OEMs, carrying an extensive, differentiated, proprietary line of products in the plastic connector market," said American Capital Managing Director Frank Do. "The Company's innovative product design and adherence to stringent U.S. and international quality specifications, as well as its strong brand name and superior engineering capabilities, have positioned Value Plastics as a niche leader in the medical device component industry. These competitive advantages, coupled with the Company's diverse and loyal base of global customers and attractive growth plans, make this an exciting investment opportunity."

"Value Plastics is a pioneer and leader in the fluid management components industry for medical devices and other related healthcare products. The Company has developed an excellent reputation for the highest quality products, product differentiation and innovation, exceptional customer service and on-time delivery," said American Capital Vice President and Value Plastics Chairman Kimberly Reed."With positive demographic trends towards an aging population, new medical treatments and applications, growth in the international healthcare industry and increased plastic connector outsourcing by OEMs, Value Plastics can expect its products' demand to continue to increase. We are delighted to work with Value Plastics' strong management team and believe that their valuable healthcare experience will bode well for the Company as it executes its growth plan."

Founded in 1968 and based in Fort Collins, CO, Value Plastics designs and manufactures a proprietary line of plastic, disposable fluid connectors used to link flexible tubing in medical devices, analytical equipment and healthcare products of all types. These products transport blood, air, irrigation solutions and medications, among other fluids. Value Plastics manufactures over 2,800 SKUs in over 400 separate shapes and configurations of disposable fluid connectors, including barbed plastic luer fittings, tube-to-tube fittings, blood pressure components and threaded fittings. The Company's products are used in a wide variety of medical device, biopharmaceutical and instrumentation applications. The products are also used in certain, high value industrial applications where high precision and consistent quality are demanded. Value Plastics has a unique and diverse global customer base, which includes many of the top tier medical industry players as well as large and small medical device manufacturers.

"We believe that our partnership with American Capital strengthens our ability to pursue our growth opportunities, such as new market penetration, new product development, geographic expansion and complementary acquisitions," said Value Plastics President and CEO Bruce Williams. "With their support, Value Plastics is in a significantly enhanced position to build on our leading position and successful history. We look forward to continuing to provide our valued customers with the most advanced and reliable products for their specific medical needs."

For more information about Value Plastics superior line of critical medical components click here.

ABOUT AMERICAN CAPITAL

American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $7 billion. American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, provides capital directly to private and small public companies and through its asset management business is a manager of debt and equity investments in private companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.

As of October 31, 2005, American Capital shareholders have enjoyed a total return of 419% since the Company's IPO - an annualized return of 22%, assuming reinvestment of dividends. American Capital has paid a total of $868 million in dividends and paid $19.08 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.