FOR IMMEDIATE RELEASE:
November 29, 2006

Contact
Jon Leiman, Principal (312) 681-7400
John Neis, Vice President (312) 681-7400
Brian Maney, Director, Corporate Communications (301) 951-6122

AMERICAN CAPITAL INVESTS $50 MILLION TO SUPPORT ACQUISITION OF NATIONAL PROCESSING COMPANY ASSETS

Bethesda, MD - November 29, 2006 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $50 million in a second lien term loan to support the acquisition of certain assets of National Processing Company and 100% of the capital stock of Best Payment Solutions Inc. from BA Merchant Services, the merchant processing business of Bank of America N.A.  The businesses will be combined with existing American Capital portfolio company Retriever Payment Systems and will operate as National Processing Company.  The combined businesses represent the largest merchant acquirer focused on the small-to-medium merchant market, providing credit, debt and other transaction processing services to merchants throughout the United States.  GTCR is the majority owner of National Processing Company.

“It is a pleasure to again provide debt capital to GTCR, this time to support the acquisition of National Processing Company and Best Payment Solutions, two providers of payment processing and other related services to small and medium sized merchants.  This is our tenth debt investment with GTCR and totals $314 million in such commitments to six GTCR portfolio companies,” said American Capital Regional Managing Director Darin Winn.  “Our commitment demonstrates the continuing support we extend to all of our portfolio companies and strengthens our portfolio of transaction processing businesses.”

American Capital has invested directly and through its funds under management $6.4 billion in the last twelve months, $5.7 billion year to date and $1.3 billion quarter to date.  Not including funds under management, American Capital has invested $5 billion in the last twelve months, $4.4 billion year to date and $935 million quarter to date. For more information about American Capital's portfolio, click here.

“Retriever’s combination with National Processing Company and Best Payment Solutions creates one of the largest bankcard transaction processors in the U.S.  The resulting Company achieves a significant size in a rapidly growing industry and targets the fast growing small merchant segment,” said American Capital Principal Jon Leiman.  “Retriever’s management team, with its extensive industry experience and its first-hand knowledge of both National Processing Company and Best Payment Solutions, is ideally suited to maximize the potential of these acquisitions.”   

“We are delighted to be backing a management team that has a lengthy industry track record of achieving rapid growth and successful integration of new acquisitions,” said American Capital Vice President John Neis.  “National Processing Company and Best Payment Solutions have a diversified, top-quality, high-margin merchant base whose growth will be further accelerated with Retriever’s proprietary Merchant Activation Gateway system, a merchant application approval technology.  The National Processing Company trademark is the most seasoned and one of the best known brands in the merchant acquiring industry.”

National Processing Company, founded in Louisville, KY in 1979, provides payment processing and other related services to a broad range of merchants.  The National Processing Company assets acquired in this transaction include approximately 159,000 merchants, primarily small businesses along with hundreds of independent sales organization (ISO) relationships, which are largely exclusive.

Founded in 1993, Best Payment Solutions provides payment processing and other services to approximately 29,000 merchants, also primarily small businesses.  The Company sells its services primarily through ISOs.  Best Payment Solutions has operations in Westmont, IL and a sales and support facility in Tampa, FL.

In 2004, American Capital provided $26 million of mezzanine debt supporting GTCR’s buyout of Retriever.  Founded in 1986 and located in Houston, TX, Retriever is a leading U.S. merchant acquirer and transaction processor, providing payment processing and other related services to small-and medium-sized merchants for credit card, debit card and other payment transactions.  Retriever markets and sells its products and services through one of the largest independent distribution channels in the industry of over 400 sales groups located throughout the U.S. that are responsible for identifying, selling and setting up new merchants and nearly 250 agent banks that market its products to commercial customers.  In addition to its headquarters, Retriever has an operations facility in Chicago, IL and regional sales offices on Cape Cod, MA and in Orlando, FL and Louisville, KY.  It employs approximately 250.

“We are delighted with American Capital’s continued commitment to National Processing Company and look forward to its ongoing support for this company as well as others,” said GTCR Vice President, Chris Ragona.  “The combined businesses of National Processing Company will continue to excel in the attractive electronic transaction processing industry as both credit card and debit card payments increase.”

For more information about American Capital’s original investment in Retriever, click here.

ABOUT AMERICAN CAPITAL

American Capital is a publicly traded buyout and mezzanine fund with $12 billion in capital resources under management. American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, provides capital directly to early stage and mature 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, recapitalizations and securitizations. American Capital invests from $5 million to to $500 million per company.

As of October 31, 2006, American Capital shareholders have enjoyed a total return of 556% since the Company's IPO - an annualized return of 23%, assuming reinvestment of dividends. American Capital has paid a total of $1.3 billion in dividends and paid or declared $22.44 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 www.AmericanCapital.com.

ABOUT GTCR

Founded in 1980, GTCR Golder Rauner LLC is a leading private equity investment firm and long-term strategic partner for management teams.  GTCR currently manages more than $8 billion of equity and mezzanine capital invested in a wide range of companies and industries.

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 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.

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