FOR IMMEDIATE RELEASE:
December 22, 2006

Contact
Tom McHale, Senior Vice President, Finance (301) 951-6122
John Hooker, Vice President, Debt Capital Markets (301) 951-6122
Brian Maney, Director, Corporate Communications (301) 951-6122

AMERICAN CAPITAL ASSIGNED BBB, Baa2, BBB RATINGS BY
MOODY’S, STANDARD & POOR’S, FITCH

Bethesda, MD –-December 22, 2006 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that Moody’s Investors Service has assigned a Baa2 long-term issuer rating to American Capital and Standard & Poor’s Ratings Services has assigned a BBB counterparty credit rating.  In addition, Fitch Ratings has upgraded American Capital’s long-term issuer default rating (IDR) and senior unsecured debt rating to BBB.  Fitch, Moody’s and Standard & Poor’s gave their American Capital ratings a stable outlook.

For the complete Moody’s press release, click here.

For the complete Standard & Poor’s press release, click here.

For the complete Fitch Ratings press release, 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 $500 million per company.

As of November 30, 2006, American Capital shareholders have enjoyed a total return of 588% 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.

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.