FOR IMMEDIATE RELEASE:
June 12, 2006

Contact
Thomas McHale, Senior Vice President, Finance (300) 951-6122

American Capital Issued $900 Million Unsecured Credit Facility

Bethesda, MD - June 12, 2006 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that Wachovia Capital Markets, LLC as sole bookrunner and as joint lead-arranger and BB&T Capital Markets as joint lead-arranger have arranged a $900 million unsecured revolving credit facility for American Capital with a syndicate of lenders and Wachovia Bank, NA as administrative agent.

American Capital has raised $4.6 billion of debt capital since 1999. The majority of lenders in American Capital's prior unsecured facility have increased their commitments, and the Company now has a total of 24 lenders in its unsecured facility. In addition, the Company increased the facility commitment size from $310 million to $900 million and also improved the pricing.

American Capital had the following amounts outstanding under each term debt issuance and facility as of March 31, 2006:

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 and commercial loan obligations. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations.

As of December 31, 2005, American Capital shareholders have enjoyed a total return of 396% since the Company's IPO - an annualized return of 20%, assuming reinvestment of dividends. American Capital has paid a total of $868 million in dividends and paid$20.73 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.