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American Capital Invests in One Stop Buyout of FreeConference.com

Bethesda, MD - May 25, 2006 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested in the One Stop Buyout of FreeConference.com Inc., a leading provider of free telephone conference calling services. American Capital's investment takes the form of a senior term loan, senior subordinated debt, redeemable preferred equity, convertible preferred equity and common equity. American Capital is also providing a revolving credit facility. Glickman Capital and Broadstream Capital Partners, both advisers to FreeConference.com, and FreeConference.com management are also investing in the equity. Post close, American Capital owns 84% of the Company on a fully diluted basis. More...