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Two Bethesda Metro Center
14th Floor
Bethesda MD 20814
(301) 951-6122
(301) 654-6714 Fax
Info@AmericanCapital.com
www.AmericanCapital.com
American Capital 461 Fifth Ave.
26th Floor
New York, NY 10017
(212) 213-2009
(212) 213-2060 Fax
NYInfo@AmericanCapital.com

FOR IMMEDIATE RELEASE:
January 18, 2000

AMERICAN CAPITAL LAUNCHES JAPANESE SHAREHOLDER WEBSITE
FOREIGN LANGUAGE SITE IS FIRST IN A PLANNED SERIES TO REACH INTERNATIONAL INVESTORS

Bethesda, MD -- American Capital (Nasdaq:ACAS) today announced that it has launched a Japanese version of its shareholder website. The site is aimed at providing Japanese speaking investors with comprehensive information on American Capital and its portfolio companies. The Japanese site can also be accessed through the Company's main shareholder website.

"American Capital is proactive in its use of the Internet. We have created one of the finest informative sites for shareholders," commented John Erickson, Chief Financial Officer. "Our new Japanese language site is an extension of our current shareholder site, which we have successfully used to communicate to our stockholders on a comprehensive set of issues. As the trend toward the globalization of equity markets continues to accelerate, we have expanded our commitment to making our shareholder information easily accessible to investors worldwide."

The site includes shareholder reports, detailed analyst presentations, SEC filings, dividend information, stock performance charts, press releases and other financial data. The Company also broadcasts its investor conference calls via its website. Key sections of the site have been translated to provide Japanese speaking investors access to much of the extensive body of financial information currently available on the English language American Capital website.

"We are pleased to begin making available to investors information written in multiple languages that will allow global investors to judge the merits of American Capital as an investment. We believe that they will find our 8% dividend yield, portfolio asset quality and prospects for growth to be very compelling," said Malon Wilkus, Chairman and Chief Executive Officer of American Capital.

American Capital plans to launch equally inclusive sites in Spanish, Chinese and German in the near future.

The following tables reflect American Capital's stock performance relative to major indices, as well as provide information on American Capital's record of dividends.

IRR (%) Annualized* IRR (%) Since IPO*
American Capital 28.7% 80.3%
S&P 500 23.4 63.3
Dow Jones 30 Industrials 19.3 50.8
Russell 2000 7.8 19.2
Wilshire Small Cap 12.8 32.5
NASDAQ Financial 100 3.1 7.4

*From August 30, 1997 through December 31, 1999

American Capital's Dividend History

$1.74 Total Dividends for 1999

Year and Quarter Regular Dividend Bonus Dividend Total Dividend
1997 Q4 $0.21 $0.21
1997 Total $0.21 $0.21
1998 Q1 $0.25 $0.25
1998 Q2 $0.29 $0.29
1998 Q3 $0.32 $0.32
1998 Q4 $0.37 $0.11 $0.48
1998 Total $1.34
1999 Q1 $0.41 $0.41
1999 Q2 $0.43 $0.43
1999 Q3 $0.43 $0.43
1999 Q4 $0.44 $0.03 $0.47
1999 Total $1.74

American Capital is a buyout and specialty finance company with capital resources exceeding $460 million. American Capital invests senior debt, subordinated debt and equity in businesses in need of capital for growth, acquisitions, ESOP buyouts, management buyouts, Internet development, liquidity and restructurings. Through www.Capital.com, financing is provided for receivable and inventory financing, working capital loans, machinery and equipment loans, real estate loans, construction financing, acquisition funding, management buyouts, ESOP financings, Internet development, liquidity and restructurings.

Companies interested in learning more about American Capital's flexible financing and ability to provide senior debt, subordinated debt and equity should contact Mark Opel, Principal, at (800) 248-9340, or visit our website.

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements regarding expected results of American Capital Strategies 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 or national economic conditions, or changes in the conditions of the industries in which American Capital has made investments.


HOME OFFICE
Washington
2 Bethesda Metro Center
14th Floor
Bethesda, MD 20814
(301) 951-6122
(301) 654-6714 fax
Info@AmericanCapital.com
REGIONAL OFFICES
New York
461 Fifth Avenue
26th Floor
New York, NY 10017
(212) 213-2009
(212) 213-2060 fax
NYInfo@AmericanCapital.com
San Francisco
Three Embarcadero Center
Suite 2320
San Francisco, CA 94111
(415) 591-0120
(415) 591-0111 fax
SanFranInfo@AmericanCapital.com
Dallas
2200 Ross Avenue
Suite 4500W
Dallas, TX 75201
(214) 273-6630
(214) 273-6635 fax
DallasInfo@AmericanCapital.com
Chicago
5775 Sears Tower
233 South Wacker Drive
Chicago, IL 60606
(312) 681-7400
(312) 454-0600 fax
ChicagoInfo@AmericanCapital.com
Los Angeles
21550 Oxnard Street, Suite 1010
Warner Center Plaza Two
Woodland Hills, CA 91367
(818) 676-1222
(818) 676-1733 fax
LAInfo@AmericanCapital.com
Philadelphia
One Tower Bridge, Suite 250
100 Front Street
West Conshohocken, PA 19428
(610) 238-0210
(610) 828-9501 fax
PhilaInfo@AmericanCapital.com