FOR IMMEDIATE RELEASE:
February 14, 2006

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

American Capital Declares $0.80 Q1 2006 Dividend, Reports $3.16 Net Operating Income Per Basic Share In 2005 Announces 2006 Dividend Guidance Of $3.29 Per Share

Bethesda, MD - February 14, 2006 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today its first quarter 2006 dividend, 2006 dividend guidance and its results for the fourth quarter and full year of 2005.

2006 Q1 DIVIDEND DECLARATION
American Capital's Board of Directors has declared a first quarter 2006 regular dividend of $0.80 per share to record holders as of February 28, 2006, payable on April 3, 2006. This dividend is a 10% increase over the first quarter 2005 regular dividend of $0.73 per share. American Capital has paid a total of $961 million in dividends and paid or declared dividends of $19.91 per share since its August 1997 IPO at $15.00 per share. American Capital paid $3.08 in dividends per share for 2005 from ordinary taxable income. In addition, it retained approximately $48 million of its taxable income and accrued a 4% excise tax totaling $1.6 million.

2006 DIVIDEND GUIDANCE
American Capital is forecasting paying total 2006 dividends of $3.29 per share from ordinary taxable income earned in 2006. This would represent a 7% growth over the total 2005 dividends of $3.08 per share. American Capital anticipates that its 2006 ordinary taxable income will exceed its dividend and it will elect to pay a 4% excise tax and retain its excess ordinary taxable income. The 2006 dividends per share are estimated to be in the following quarterly amounts: $0.82 Q2, $0.83 Q3, $0.84 Q4.

2005 RESULTS
In addition, American Capital announced today its results for the quarter and year ended December 31, 2005. Total 2005 dividends were $3.08 per share, a 6% growth over 2004 total dividends of $2.91 per share. American Capital's net asset value per share at December 31, 2005 was $24.37, a $3.26 or 15% growth over the December 31, 2004 net asset value per share of $21.11.

Net operating income (NOI) for the year increased 43% to $314 million compared to $220 million for 2004. On a basic per share basis, NOI increased 10% to $3.16 per share compared to $2.88 per share in 2004. On a diluted per share basis, NOI increased 10% to $3.10 per share compared to $2.83 per share for 2004. NOI for the quarter increased 40% to $91 million compared to $65 million for the fourth quarter 2004. NOI increased 8% to $0.82 per basic share compared to $0.76 per basic share for the fourth quarter 2004. NOI increased 8% to $0.80 per diluted share compared to $0.74 per diluted share for the fourth quarter 2004.

For the year, the net increase in net assets resulting from operations (NOI plus net appreciation and depreciation and net gains and losses on investments) was $365 million, or $3.68 per basic share and $3.60 per diluted share, compared to $281 million, or $3.69 per basic share and $3.63 per diluted share, in 2004. For the fourth quarter of 2005, the net increase in net assets resulting from operations was $80 million, or $0.72 per basic share and $0.71 per diluted share, compared to $97 million, or $1.14 per basic share and $1.11 per diluted share, in the fourth quarter 2004.

"We had an outstanding year in 2005," said Malon Wilkus , American Capital Chairman, President and CEO. "We grew our net operating income by $94 million, dividend by 6%, return on average equity per share by 16%, net asset value by 15%, harvested $45 million in net realized gains from our portfolio and initiated an asset management business with a goal of increasing highly predictable and growing asset management fee income to build long-term shareholder value. In this vein, we are estimating $37 million of revenue in 2006 from our European Capital asset management agreement, including expense reimbursements. American Capital shareholders enjoyed a 19% annualized return for 2005 versus a 5% return for the S&P 500. We believe 2006 is shaping up to be another banner year in which we will grow our dividend by 7% while continuing the development of our asset management strategy."

In 2005, American Capital invested $3.714 billion, composed of $1,396 million of senior debt, $859 million of subordinated debt, $487 million of preferred stock, $759 million of common stock, $113 million of common stock warrants and $100 million of commercial mortgage backed securities and collateralized debt obligations. Seventeen investments, totaling $1,480 million, were in American Capital-sponsored buyouts of new portfolio companies. Twenty-one investments, totaling $701 million, were in buyouts of new portfolio companies led by other private equity firms. Seven investments, totaling $218 million, were in direct investments of new portfolio companies. Three investments, totaling $100 million, were in commercial mortgaged backed securities and collateralized debt obligations. One investment, totaling $617 million, was an equity commitment in European Capital Limited (of which $465 million was unfunded at year end). Eight investments, totaling $157 million, were in existing portfolio companies to finance strategic acquisitions. One investment, totaling $108 million, was in an American Capital sponsored buyout of an existing portfolio company. Fifteen investments, totaling $271 million, were in existing portfolio companies for growth or recapitalizations. Investments totaling $62 million were in 15 existing portfolio companies for working capital, including $15 million to eight existing portfolio companies for distressed related working capital. Total invested assets at fair value increased 58% to $5.1 billion at December 31, 2005 as compared to $3.2 billion at December 31, 2004.

In fourth quarter 2005, American Capital invested $978 million, composed of $383 million of senior debt, $193 million of subordinated debt, $170 million of preferred stock, $64 million of common stock, $87 million of common stock warrants and $81 million of commercial mortgage backed securities. Four investments, totaling $565 million, were in American Capital-sponsored buyouts of new portfolio companies. Two investments, totaling $122 million, were in buyouts led by other private equity firms. One investment, totaling $81 million, was in commercial mortgaged backed securities. One investment, totaling $20 million, was in an existing portfolio company to finance a strategic acquisition. Six investments, totaling $183 million, were in existing portfolio companies for growth or recapitalizations. Five investments, totaling $7 million, were for working capital for existing portfolio companies, including four investments totaling $3 million for distressed related working capital.

In 2005, American Capital received $1.5 billion of proceeds from exits of portfolio investments, composed of $340 million of senior loan sales, $687 million of principal prepayments, $57 million of scheduled principal amortization, $34 million of accrued payment-in-kind (PIK) interest and dividends and accreted original issue discount (OID), $142 million of repayments of bridge notes to European Capital Limited and $195 million from the sale of equity investments.

In fourth quarter 2005, American Capital received $687 million of proceeds from exits of portfolio investments, composed of $174 million of senior loan sales, $259 million of principal prepayments, $17 million of scheduled principal amortization, $14 million of accrued PIK interest and dividends and accreted OID, $142 million of repayments of bridge notes to European Capital Limited and $81 million from the sale of equity investments.

"It was an outstanding year for our middle market investment platform," said Ira Wagner, Chief Operating Officer. "We continued to be the most active mezzanine and equity investor in the U.S. middle market, participating in approximately 5% of the transactions in our target markets. Our volume of investment opportunities as measured in dollars grew approximately 100% for both American Capital buyout opportunities and financing opportunities combined. We have now invested with 82 different private equity firms over the past 8 years and our ability to provide one-stop financing combined with our senior loan syndication capabilities has been an important component in that success. Additionally, we launched European Capital during 2005 and have become an accepted investor in the European markets with our $212 million of investments during 2005 exceeding our initial projections. We continue to believe that our OneStop Buyout^TM capability will prove as attractive in Europe as it is in the U.S. Lastly, we continue to see a large pipeline of both buyout and financing opportunities in both North America and Europe leading us to believe that 2006 will be another very active year."

The weighted average effective interest rate on American Capital's total investments in debt securities as of December 31, 2005 was 12.8%. At December 31, 2005, the weighted average loan grade of American Capital's loan portfolio was 3.1 on a scale of 1 to 4, with 4 being the highest quality, compared to 3.1 as of December 31, 2004. As of December 31, 2005, loans to 14 portfolio companies totaling $132 million, with a fair value of $48 million, were on non-accrual. Delinquent and non-accruing loans totaled $186 million, or 5% of total loans, at December 31, 2005, compared to $163 million, or 7% of total loans, at December 31, 2004.

In 2005, American Capital recorded $45 million in portfolio net realized gains, excluding $9 million in losses attributable to periodic interest settlements of interest rate swap agreements. This is comprised of $147 million of gross gains and $102 million of gross losses on portfolio investments. In the fourth quarter of 2005, American Capital recorded $6 million in portfolio net realized gains, excluding $1 million in losses attributable to periodic interest settlements of interest rate swap agreements. This is comprised of $70 million of gross gains and $64 million of gross losses on portfolio investments.

"We raised approximately $2.3 billion in capital during 2005," said Chief Financial Officer John Erickson. "Our balance sheet continues to gain flexibility as we successfully utilized our equity forward program to maintain our leverage ratio at about 0.9:1. We grew our unsecured debt by nearly $460 million and issued our seventh and largest term securitization, raising $830 million at a weighted average interest rate of LIBOR plus .36%, our best pricing ever. Additionally, we enhanced the structure of this securitization by adding a three year revolving period. We also raised approximately $275 million of third party equity capital commitments for European Capital. Additionally, we received six upgrades from Fitch Ratings and three from Moody's Investor Services for prior securitization tranches and American Capital's unsecured credit rating from Fitch was increased to BBB- with a positive outlook. Along with $902 million of equity raised in 2005 at an average of 1.6 premium to book, our capitalization is broader and more flexible than ever and we are maintaining our competitive advantage by raising the lowest cost capital in our industry to help fuel our growth."

From its 1997 IPO through the fourth quarter of 2005, American Capital's average annual rate of net depreciation and gains on portfolio company investments (excluding interest rate derivative agreements) was a positive 0.6% of average equity. American Capital outperformed FDIC insured commercial banks, which experienced charge offs net of securities gains of negative 4.4% of average annual equity (based on FDIC Quarterly Banking Profile data for Commercial Banks from American Capital's IPO through the third quarter of 2005). American Capital had a positive 2.9% annual rate of gain on average equity over the past nine quarters versus an annual rate of charge offs net of securities gains of negative 3.3% of average annual equity over the past eight quarters for FDIC insured commercial banks.

In 2005, net appreciation totaled $15 million, consisting of net appreciation of $21 million from current portfolio companies ($243 million of appreciation at 43 portfolio companies and $222 million of depreciation at 34 portfolio companies), $38 million of net depreciation resulting from the recognition of net gains and $32 million of net appreciation on interest rate derivative agreements. Interest rate derivative agreements are required by American Capital's loan agreements and asset securitizations to lock in interest rate spreads on the securitized investments and reduce interest rate risk. Their fair values appreciate or depreciate based on relative market interest rates and their remaining term to maturity. Since the Company's August 1997 IPO, cumulative net appreciation and gains on portfolio company investments totals $7 million through December 31, 2005. When including interest rate derivative agreements, cumulative depreciation net of gains totals $4 million.

In fourth quarter 2005, net depreciation totaled $16 million, consisting of net depreciation of $24 million from current portfolio companies ($55 million of appreciation at 24 portfolio companies and $79 million of depreciation at 23 portfolio companies), $3 million of net depreciation resulting from the recognition of net gains and $11 million of net appreciation on interest rate derivative agreements.

Since its August 1997 IPO through fourth quarter 2005, American Capital has earned a 17% compounded annual return on 118 exits and prepayments of senior debt, subordinated debt and equity investments, totaling $2.6 billion of invested capital, including interest, dividends, fees and net gains on these investments. These exits and prepayments represent 30% of all amounts invested by American Capital since its August 1997 IPO. Proceeds from these exits and prepayments exceeded the associated prior quarter valuation of the investments by $ 45 million in aggregate, or 2%. Twenty percent of these exits and prepayments were from portfolio companies that had at one time been either a loan grade 1 or 2 in American Capital's four point loan grading system, with 1 being the lowest loan grade. Since its IPO through the fourth quarter of 2005, $75 million of American Capital's PIK interest and dividends and accreted OID have been repaid, representing 29% of all PIK and OID recorded.

SHAREHOLDER PRESENTATION Q&A
Starting with the February 15th Shareholder Presentation, American Capital intends to address in a special Q&A section of its quarterly shareholder presentation, questions, comments and misunderstandings about American Capital that arise during the quarter from shareholders, analyst reports, the Yahoo ACAS Bulletin Board and the BDCs.ValueForum.com bulletin board. American Capital invites shareholders and prospective shareholders to review these presentations.

THIRD PARTY VALUATION OF PORTFOLIO INVESTMENTS
Houlihan Lokey Howard & Zukin Financial Advisors Inc. ("Houlihan Lokey") reviews the determination of fair value of American Capital's portfolio company investments on a regular basis. Houlihan Lokey is the premier valuation firm in the U.S., engaged in approximately 1,000 valuation assignments per year for clients worldwide. In the past year, Houlihan Lokey has reviewed 100% of American Capital's portfolio investments that have been portfolio companies for at least one year and that have a fair value in excess of $10 million. In addition, Houlihan Lokey representatives attend American Capital's quarterly valuation meetings and provide periodic reports and recommendations to the Audit and Compliance Committee of the Board of Directors with respect to valuation models, policies and procedures.

For the fourth quarter of 2005, Houlihan Lokey reviewed the Company's valuations of 26 portfolio company investments having $1.1 billion in fair value as reflected in the December 31, 2005 financial statements. Using methods and techniques that are customary for the industry and that Houlihan Lokey considers appropriate under the circumstances, Houlihan Lokey determined that the aggregate fair value assigned to the portfolio company investments by American Capital was within their reasonable range of aggregate value for such companies. Over the last four quarters, Houlihan Lokey has reviewed 99 portfolio companies totaling $3.1 billion in fair value as of their respective valuation dates.

Financial highlights for the quarter are as follows:

                      AMERICAN CAPITAL STRATEGIES, LTD.
            CONSOLIDATED BALANCE SHEETS AND FINANCIAL INFORMATION
                   (In thousands, except per share amounts)



                                               December 31,      December 31,
                                                   2005              2004
                                               (unaudited)

    Assets
    Investments at fair value (cost of
     $5,134,398 and $3,236,249, respectively)
         Non-Control/Non-Affiliate
          investments                           $2,135,795        $1,157,406
         Affiliate investments                     449,026           408,529
         Control investments                     2,516,282         1,654,075
         Interest rate derivative
          agreements                                18,132             1,678
         Total investments at fair value         5,119,235         3,221,688
    Cash and cash equivalents                       97,134            58,367
    Restricted cash                                121,772           141,895
    Interest receivable                             32,668            22,053
    Other                                           78,300            47,424
    Total assets                                $5,449,109        $3,491,427

    Liabilities and Shareholders' Equity
    Debt                                        $2,466,860        $1,560,978
    Interest rate derivative agreements              2,140            17,396
    Accrued dividends payable                        3,574             5,322
    Other                                           78,898            35,305
    Total liabilities                            2,551,472         1,619,001

    Commitments and contingencies
    Shareholders' equity:
         Undesignated preferred stock,
          $0.01 par value, 5,000 shares
          authorized, 0 issued and outstanding         -                 -
         Common stock, $0.01 par value,
          200,000 shares authorized, 119,123
          and 88,705 issued and 118,913 and
          88,705 outstanding, respectively           1,189               887
         Capital in excess of par value          3,001,791         2,010,063
         Unearned compensation                     (58,977)          (36,690)
         Notes receivable from sale of
          common stock                              (6,655)           (6,845)
         Distributions in excess of net
          realized earnings                        (22,408)          (63,032)
         Net unrealized depreciation of
          investments                              (17,303)          (31,957)
    Total shareholders' equity                   2,897,637         1,872,426
    Total liabilities and shareholders'
     equity                                     $5,449,109        $3,491,427
    Net asset value per share                       $24.37            $21.11

    OTHER FINANCIAL INFORMATION:

    LTM net operating income return on
     average equity at cost (unaudited)              13.6%             14.1%




                      AMERICAN CAPITAL STRATEGIES, LTD.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In thousands, except per share data)


                                     Three Months Ended   Fiscal Year Ended
                                        December 31,         December 31,
                                       2005      2004      2005       2004
                                        (unaudited)     (unaudited)
    OPERATING INCOME:
    Interest and dividend income
     Non-Control/Non-Affiliate
      investments                     $57,766   $34,423   $184,671   $113,668
     Affiliate investments             15,533    10,671     57,979     36,326
     Control investments               53,823    42,542    183,205    121,239
       Total interest and dividend
        income                        127,122    87,636    425,855    271,233
    Fee and Other Income
     Non-Control/Non-Affiliate
      investments                       8,939     2,936     38,101     21,688
     Affiliate investments              1,597     2,562     10,518      5,663
     Control investments               35,503    18,574     80,026     37,498
       Total fee and other income      46,039    24,072    128,645     64,849
       Total operating income         173,161   111,708    554,500    336,082
    OPERATING EXPENSES:
    Interest                           33,490    13,935    100,715     36,851
    Salaries, benefits and stock-
     based compensation                29,830    24,899     85,680     50,513
    General and administrative         14,444     7,223     41,753     26,487
       Total operating expenses        77,764    46,057    228,148    113,851
    OPERATING INCOME BEFORE INCOME
     TAXES                             95,397    65,651    326,352    222,231
    Provision for income taxes         (4,836)     (761)   (12,504)    (2,130)
    NET OPERATING INCOME               90,561    64,890    313,848    220,101
    Net realized gain (loss) on
     investments
     Non-Control/Non-Affiliate
      investments                      14,627    18,829     36,265     13,978
     Affiliate investments               (797)    3,094      6,654      3,411
     Control investments               (8,145)   12,054      2,475    (37,365)
     Interest rate derivative
      periodic payments                  (825)   (4,381)    (8,987)   (17,894)
       Total net realized gain (loss)
        on investments                  4,860    29,596     36,407    (37,870)
    Net unrealized (depreciation)
     appreciation of investments
     Portfolio company investments    (27,166)   (3,309)   (17,056)    91,456
     Interest rate derivative
      periodic payment accrual          1,167        16      1,694     (3,167)
     Interest rate derivative
      agreements                       10,401     6,151     30,016     10,925
       Total net unrealized
       (depreciation) appreciation
        of investments                (15,598)    2,858     14,654     99,214

       Total net gain (loss) on
        investments                   (10,738)   32,454     51,061     61,344
    NET INCREASE IN NET ASSETS
     RESULTING FROM OPERATIONS        $79,823   $97,344   $364,909   $281,445

    NET OPERATING INCOME PER COMMON
     SHARE:
      Basic                             $0.82     $0.76      $3.16      $2.88
      Diluted                           $0.80     $0.74      $3.10      $2.83

    NET EARNINGS PER COMMON SHARE:
      Basic                             $0.72     $1.14      $3.68      $3.69
      Diluted                           $0.71     $1.11      $3.60      $3.63

    WEIGHTED AVERAGE SHARES OF
     COMMON STOCK OUTSTANDING:
      Basic                           110,995    85,485     99,270     76,362
      Diluted                         112,603    87,799    101,376     77,638

    DIVIDENDS DECLARED PER COMMON
     SHARE                              $0.82     $0.79      $3.08      $2.91



    Portfolio Statistics (1)                        Static Pool
    ($ in millions, unaudited):       Pre-1999  1999    2000    2001    2002

    Original Investments and
     Commitments                         $375   $378    $389    $368    $932
    Total Exits and Prepayments of
     Original Investments                $140   $191    $226    $258    $316
    Total Interest, Dividends and Fees
     Collected                           $127   $128     $86    $141    $208
    Total Net Realized (Loss) Gain on
     Investments                         $(19)  $(22)   $(74)    $48    $(19)
    Internal Rate of Return(2)           9.2%   4.9%    3.6%   23.7%   12.5%
    Current Cost of Investments          $204   $172    $177     $92    $583
    Current Fair Value of Investments    $176    $92    $179     $87    $568
    Net Unrealized
     Appreciation/(Depreciation)         $(28)  $(80)    $2     $(5)   $(15)
    Non-Accruing Loans at Face            $11    $26     $-        $5     $64
    Equity Interest at Fair Value         $18     $5     $39     $37    $177
    Debt to EBITDA(3)(4)                  9.2    8.9     5.2     6.2     5.7
    Interest Coverage(3)                  1.2    1.4     2.6     1.6     2.2
    Debt Service Coverage(3)              1.0    1.2     2.0     1.2     1.6
    Loan Grade(3)                         2.5    1.7     3.0     3.2     2.9
    Average Age of Companies           41 yrs  55yrs  28 yrs  43 yrs  33 yrs
    Ownership Percentage                  89%    72%     22%     70%     60%
    Average Sales(5)                      $97    $70    $113    $161     $78
    Average EBITDA(6)                      $5     $5     $31     $16     $11
    Total Sales(5)                       $434   $394    $345  $1,773  $1,299
    Total EBITDA(6)                       $32    $26     $75    $163    $146
    % of Senior Loans(7)                  55%    32%     59%     18%     45%
    % of Loans with Lien(7)               68%    50%     86%    100%     99%


    Portfolio Statistics (1)                          Static Pool
    ($ in millions, unaudited):              2003     2004     2005  Aggregate

    Original Investments and Commitments   $1,315   $1,513   $3,133    $8,403
    Total Exits and Prepayments of
     Original Investments                    $668     $442     $309    $2,550
    Total Interest, Dividends and Fees
     Collected                               $248     $221     $154    $1,313
    Total Net Realized (Loss) Gain on
     Investments                             $118       $9      $(1)      $40
    Internal Rate of Return(2)              24.4%    20.8%    25.3%     15.1%
    Current Cost of Investments              $648   $1,019   $2,239    $5,134
    Current Fair Value of Investments        $669   $1,080   $2,250    $5,101
    Net Unrealized
     Appreciation/(Depreciation)              $21      $61      $11      $(33)
    Non-Accruing Loans at Face                $10      $16     $-        $132
    Equity Interest at Fair Value            $267     $344     $835    $1,722
    Debt to EBITDA(3)(4)                      4.7      4.4      4.3       4.9
    Interest Coverage(3)                      2.5      2.4      2.1       2.2
    Debt Service Coverage(3)                  1.8      1.6      1.6       1.6
    Loan Grade(3)                             3.3      3.3      3.1       3.1
    Average Age of Companies               16 yrs   41 yrs   29 yrs    31 yrs
    Ownership Percentage                      67%      46%      52%       54%
    Average Sales(5)                          $97      $80     $107       $97
    Average EBITDA(6)                         $19      $15      $22       $18
    Total Sales(5)                         $1,428   $2,928   $5,297   $13,898
    Total EBITDA(6)                          $254     $544     $816    $2,056
    % of Senior Loans(7)                      48%      39%      45%       44%
    % of Loans with Lien(7)                   97%      77%      83%       84%


    (1)  Static pool classification is based on the year the initial
         investment was made.  Subsequent add-on investments are included in
         the static pool year of the original investment.  Investments in
         government securities and interest rate derivative agreements are
         excluded.
    (2)  Assumes investments are exited at current fair value.
    (3)  These amounts do not include investments in which the Company owns
         only equity.
    (4)  For portfolio companies with a nominal EBITDA amount, the portfolio
         company's maximum debt leverage is limited to 15 times EBITDA.
    (5)  Sales of the most recent twelve months, or when appropriate, the
         forecasted twelve months.
    (6)  EBITDA of the most recent twelve months, or when appropriate, the
         forecasted twelve months.
    (7)  As a percentage of our total debt investments.

						

ADDITIONAL DIVIDEND INFORMATION
American Capital must make certain distributions of its taxable income in order to maintain its tax status as a regulated investment company. Investors can refer to American Capital's most recent report on Form 10-K for more information about its tax status. American Capital intends to retain net long-term capital gains and treat them as deemed distributions for tax purposes. Therefore, the taxable income that is distributed as dividends would be expected to be treated as ordinary income for tax purposes. Taxable income differs from GAAP income because of both temporary and permanent differences in income and expense recognition. For example, changes in appreciation and depreciation of portfolio investments have no impact on American Capital's taxable income. American Capital reports the anticipated tax characteristics of each dividend when announced, while the actual tax characteristics of each year's dividends are reported annually to stockholders on Form 1099DIV. The 2005 dividends of $3.08 per share were a distribution of ordinary income for tax purposes. The 2006 declared dividend to-date, totaling $0.80 per share, is anticipated to be a distribution of ordinary income for tax purposes.

DIVIDEND REINVESTMENT PLAN (DRIP)
In appreciation of the loyal support of our shareholders, American Capital's Dividend Reinvestment Plan grants a 5% discount to the market price for reinvested dividends. Brokerages that have confirmed participation in the DRIP include:

Ameritrade
A.G. Edwards
Citigroup-Smith Barney
Fidelity
J.J.B. Hilliard, W.L. Lyons, Inc.
Legg Mason
Merrill Lynch
Morgan Keegan
Raymond James
RBC Dain Rauscher
UBS Financial
Wachovia Securities
Wedbush Morgan

A summary of American Capital's dividend history follows. For further dividend history, please visit our website at www.ACAS.com. For more information regarding the DRIP, please visit our website or call our Investor Relations Department at (301) 951-6122.

                        AMERICAN CAPITAL'S DIVIDEND HISTORY
              $19.91 DECLARED SINCE AUGUST 1997 IPO AT $15.00 PER SHARE



                                % Change of                          of Total
                                   Regular                           Dividend
     Year/            Regular   Dividend Over  Additional           Over Prior
    Quarter          Dividend     Prior Year    Dividend    Total      Year

    Total
    1997 to
    Q1 2006
    Declared                                                  $19.91


   2006                $3.29         8%        Not Planned    $3.29      7%
   Q4 Forecast         $0.84         6%
   Q3 Forecast         $0.83         6%
   Q2 Forecast         $0.82         9%
   Q1 Declared         $0.80         10%

   2005                $3.05         7 %        $0.03      $3.08         6%
    Q4                 $0.79         8 %
    Q3                 $0.78         8 %
    Q2                 $0.75         7 %
    Q1                 $0.73         4 %

    2004               $2.85         4 %         $0.06      $2.91       4 %
    Q4                 $0.73         6 %
    Q3                 $0.72         4 %
    Q2                 $0.70         3 %
    Q1                 $0.70         4 %

    2003               $2.73         7 %         $0.06      $2.79       9 %
    Q4                 $0.69         3 %
    Q3                 $0.69         5 %
    Q2                 $0.68         8 %
    Q1                 $0.67        14 %

    2002               $2.55        15 %         $0.02      $2.57      12 %
    Q4                 $0.67        18 %
    Q3                 $0.66        18 %
    Q2                 $0.63        15 %
    Q1                 $0.59        11 %

    2001               $2.21        13 %         $0.09      $2.30       6 %
    Q4                 $0.57        10 %
    Q3                 $0.56        14 %
    Q2                 $0.55        12 %
    Q1                 $0.53        18 %

    2000               $1.95        14 %         $0.22      $2.17      25 %
    Q4                 $0.52        18 %
    Q3                 $0.49        14 %
    Q2                 $0.49        14 %
    Q1                 $0.45        10 %

    1999               $1.71        39 %         $0.03      $1.74      30 %
    Q4                 $0.44        19 %
    Q3                 $0.43        34 %
    Q2                 $0.43        48 %
    Q1                 $0.41        64 %

    1998               $1.23        N/A          $0.11      $1.34
    Q4                 $0.37        76 %
    Q3                 $0.32        N/A
    Q2                 $0.29        N/A
    Q1                 $0.25        N/A

    1997 Q4            $0.21                                $0.21
    Total Declared                                          $19.91

						

SHAREHOLDER AND ANALYSTS CALL:
American Capital invites shareholders, prospective shareholders and analysts to attend the American Capital Shareholder Call on Wednesday, February 15, 2006 at 11:00 am ET. The dial in number will be (888) 428-4480. International callers should dial +1(612) 288-0318. Please advise the operator you are dialing in for the American Capital Shareholder Call.

BEFORE THE CALL:
SLIDE PRESENTATION AVAILABLE IN ADVANCE OF THE SHAREHOLDER CALL:
The quarterly shareholder presentation includes a slide show to accompany the call that participants may download from the American Capital website at www.ACAS.com and print prior to the call. You may wish to take the time to review the slides in advance of the Shareholder Call. It is generally posted several hours in advance of the call.

DURING THE CALL:
STREAMING SLIDE PRESENTATION DURING THE SHAREHOLDER CALL:
During the Shareholder Call, we invite you to turn to our shareholder website, www.ACAS.com, and click on the February 15 Shareholder Call Slide Show button. Participants will be able to view the complete streaming slide presentation on our website while listening to the shareholder call by phone as it occurs.

AFTER THE CALL:
AUDIO AND SLIDE PRESENTATION AVAILABLE AFTER THE CALL:
The audio of the shareholder call combined with the slide presentation will be made available after the call on February 15 on our website. An archive of our audio and slide presentations of our quarterly shareholder calls can be found in the Investor Relations section of our website at www.ACAS.com.

AUDIO ONLY PRESENTATION AVAILABLE AFTER THE SHAREHOLDER CALL:
There will be a phone recording available from 9:30 pm Wednesday, February 15 until 11:59 pm Wednesday, March 1. If you are interested in hearing the recording of the presentation, please dial (800) 475-6701. International callers may dial +1(320) 365-3844. The access code for both domestic and international callers is 813354.

For further information or questions, please do not hesitate to call our Shareholder Relations Department at (301) 951-6122.

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.

Persons considering an investment in American Capital should consider the investment objectives, risks and charges and expenses of the Company carefully before investing. Such information and other information about the Company is available in the Company's annual report on Form 10-K, quarterly report on Form 10-Q and in the prospectuses the Company issues from time to time in connection with its offering of securities. Such materials are filed with the Securities and Exchange Commission and copies are available on the SEC's website, www.sec.gov. Prospective investors should read such materials carefully before investing.

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.