FOR IMMEDIATE RELEASE:
June 22, 2007

Contact
Tom McHale, Senior Vice President, Finance (301) 951-6122
John Hooker, Vice President, Debt Capital Markets (301) 951-6122

AMERICAN CAPITAL OBTAINS $1.6 BILLION UNSECURED CREDIT FACILITY

Bethesda, MD – June 22, 2007 – American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that it has obtained an unsecured revolving credit facility with an aggregate commitment of approximately $1.6 billion with Wachovia Bank, N.A. as administrative agent and a syndicate of lenders.  The facility amount may be expanded through new or additional commitments up to approximately $1.8 billion in accordance with the terms and conditions set forth in the credit agreement.  The new credit facility has a five year term and replaces American Capital’s prior $900 million unsecured line of credit.  Wachovia Capital Markets, LLC was the sole bookrunner and a joint lead-arranger for the transaction.  BB&T Capital Markets, LLC, also served as a joint lead-arranger.  Citicorp North America, Inc., JPMorgan Chase Bank, N.A. and Credit Suisse, Cayman Islands Branch, served as co-documentation agents.  Interest on borrowings under the facility is currently charged at LIBOR plus 0.90%.

“The significant increase in the amount of our unsecured credit facility at an attractive price provides American Capital with additional low-cost capital resources and also establishes credit relationships with new lenders, including eight Asian financial institutions,” said Tom McHale, American Capital Senior Vice President, Finance.  “As we expand our credit relationships with increased capital through both our unsecured debt capacity and term securitizations, we are preparing to meet the needs of our quickly growing pipeline of investment opportunities.”

American Capital has raised approximately $6.9 billion of debt capital since 1999. The majority of lenders in American Capital's prior unsecured facility are part of the syndicate for the new facility and have increased their commitments.  The Company also added 13 new lenders, including eight Asian banks, to the new unsecured credit facility, which now has a total of 32 lenders.  

"The commitment to a five year unsecured revolving line of credit by 32 financial institutions is a testament to the strength of our business model and confirmation of our BBB/Baa2/BBB investment grade credit ratings,” said John Hooker, American Capital Vice President, Debt Capital Markets.  “The increase in our credit facility is a part of our strategy to maintain not only balance in our capital structure between secured and unsecured debt, but also liquidity as we grow."

American Capital had the following amounts outstanding under each term debt issuance and facility as of June 13, 2007:

*Represents maximum amount that may be borrowed by American Capital at the lender’s discretion

ABOUT AMERICAN CAPITAL

American Capital is the second largest U.S. publicly traded alternative asset manager with $12 billion in assets under management (second to Fortress (NYSE: FIG)).  American Capital, both directly and through its global asset management business, is an investor in management and employee buyouts, private equity buyouts, and early stage and mature private and public companies.  American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations.  American Capital and its affiliates invest from $5 million to $800 million per company in North America and €5 million to €500 million per company in Europe.

As of May 31, 2007, American Capital shareholders have enjoyed a total return of 656% since the Company's IPO—an annualized return of 23%, assuming reinvestment of dividends.  American Capital has paid a total of $1.6 billion in dividends and paid or declared $24.24 dividends per share since going public in August 1997 at $15 per share.

American Capital has invested directly and through its funds under management $8.7 billion in the last twelve months, $4.6 billion year to date and approximately $3 billion quarter to date. Not including funds under management, American Capital has invested $6.1 billion in the last twelve months, $3.1 billion year to date and approximately $2 billion quarter to date. For more information about American Capital’s portfolio, click here.

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 or www.EuropeanCapital.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.