Two Bethesda Metro Center
14th Floor
Bethesda, MD 20814
(301) 951-6122
(301) 654-6714 Fax
Info@AmericanCapital.com
www.AmericanCapital.com

FOR IMMEDIATE RELEASE:
July 25, 2008

Contact
Jon Isaacson, Managing Director, Buyouts(301) 951-6122
Sean Eagle, Principal, Buyouts(301) 951-6122
Justin DuFour, Vice President, Buyouts(301) 951-6122
Brian Maney, Director, Corporate Communications (301) 951-6122

AMERICAN CAPITAL INVESTS IN AFFORDABLE CARE

FOR ADD-ON ACQUISITION

Bethesda, MD – July 25, 2008 – American Capital Ltd. (Nasdaq: ACAS) announced today that in June it invested in its portfolio company Affordable Care, Inc. to support the acquisition of a management services platform supporting five dental practices from Fields Dental Management LLC and Piedmont Dental Center P.A., a dental care provider with locations in South Carolina.  Affordable Care is a dental practice management services company that supports a network of affiliated dental practices providing removable prosthetics and related services.  American Capital’s investment takes the form of junior and senior subordinated debt.

“We are pleased to support Affordable Care’s growth with this complementary add-on acquisition,” said Brian Graff, American Capital Regional Managing Director.  “Since 2006, American Capital has backed Affordable Care, the industry leader in providing management services to affiliated dental practices with convenient, low-cost denture services.” 

American Capital, including is global fund management business, has approximately $21 billion in capital resources under management¹ and over 290 portfolio companies.  American Capital has invested directly and through its global asset management business approximately $8.2 billion in the last twelve months, $4.9 billion year to date and $20 million quarter to date.  Not including funds under management, American Capital has invested approximately $4.4 billion in the last twelve months, $1.8 billion year to date and $20 million quarter to date.  American Capital assisted in the syndication of approximately $1.3 billion of senior debt for its portfolio companies in the last twelve months and over $300 million year to date.  For more information about American Capital's portfolio, click here.

“The acquisition of Piedmont Dental presents an excellent opportunity for Affordable Care to expand its footprint in South Carolina,” said Jon Isaacson, American Capital Managing Director, Buyouts.  “The Piedmont Dental employees have driven exceptional same store sales growth and we expect continued success with Affordable Care.”

“Affiliating with the Piedmont Dental practices will add scale to an established platform led by a proven management team,” said Sean Eagle, American Capital Principal, Buyouts.  “Affordable Care management continues to execute and grow its business and we are excited to support this highly successful group.”

American Capital first invested in Affordable Care in 2006.  Founded in 1975 and based in Kinston, NC, the Affordable Care network is America’s largest provider of dentures.  The company currently provides dental practice management and on-site dental laboratory services supporting a network of 134 affiliated dental practices operating under the brand of Affordable Dentures.  The company operates in 35 states (predominantly east of the Mississippi) with approximately 175 affiliated dentists.  The Affordable Care-affiliated practices provide low-cost dentures and same-day service with no appointment necessary. 

Piedmont Dental was founded in 1979 and has locations across South Carolina.  Piedmont Dental’s products and services, which include removable prosthetics, extractions, relines and repairs, closely mirror those offered by the other dental practices affiliated with Affordable Care. 

“We are glad to work with our partners at American Capital to add five of the Piedmont Dental offices to our network of affiliated practices,” said Tim Pate, CEO, Affordable Care.  “We have come to rely on the hard-working and flexible team at American Capital over the years and look forward to continuing our relationship through this exciting transaction.”

ABOUT AMERICAN CAPITAL

American Capital, with $21 billion in capital resources under management¹, is the only private equity fund and the largest alternative asset management company in the S&P 500.  American Capital, both directly and through its global asset management business, originates, underwrites and manages investments in private equity, leveraged finance, real estate and structured products.  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.  American Capital was founded in 1986 and currently has 12 offices in the U.S. and Europe. 

As of June 30, 2008, American Capital shareholders have enjoyed a total return of 328% since the Company's IPO—an annualized return of 14%, assuming reinvestment of dividends.  American Capital has paid a total of $2.5 billion in dividends and paid $28.20 dividends per share since going public in August 1997 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 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.

¹Capital resources under management is an estimate of internally and externally managed assets and available capital resources as of May 31, 2008 and does not include any fair value adjustments subsequent to March 31, 2008.

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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