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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
FOR IMMEDIATE RELEASE:
July 27, 2004


Contact:
Tom McHale, Vice President, Finance and Investor Relations (301) 951-6122
AMERICAN CAPITAL TO REPORT SECOND QUARTER EARNINGS ON AUGUST 3
Shareholder Call Scheduled for August 4



Bethesda, MD - July 27, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today it will report second quarter 2004 earnings on Tuesday, August 3, 2004. American Capital invites shareholders, prospective shareholders and analysts to attend the American Capital Shareholder Call on Wednesday, August 4 at 11:00 am ET. The dial in number will be (888) 496-6261. International callers should dial (303) 242-0016. Please advise the operator you are dialing in for the American Capital Shareholder Call.

SLIDE PRESENTATION AVAILABLE IN ADVANCE OF THE SHAREHOLDER CALL:
During the Shareholder Call, we invite you to turn to our shareholder website, www.ACAS.com, and click on the August 4 Shareholder Call Slide Show button. The quarterly shareholder presentation includes a summary slide show to accompany the call that participants may download and print and a longer version with supplementary information. You may wish to take the time to review the slides in advance of the Shareholder Call.

STREAMING SLIDE PRESENTATION DURING THE SHAREHOLDER CALL:
Participants will also be able to access the complete streaming slide presentation on our website while listening to the shareholder call by phone as it occurs.

AUDIO AND SLIDE PRESENTATION AVAILABLE AFTER THE CALL:
The audio of the shareholder call and slide presentation will be made available after the earnings release on August 4 on our website. An archive of our audio and slide presentations of our quarterly shareholder calls can be found in the Investor Relations section of our website at www.ACAS.com.

AUDIO ONLY PRESENTATION AVAILABLE AFTER THE SHAREHOLDER CALL:
There will be a phone recording available from 9:30 pm August 4 until 11:59 pm August 14. If you are interested in hearing the recording of the presentation, please dial (800) 475-6701. International callers may dial (320) 365-3844. The access code for both domestic and international callers is 738161.

For further information or questions, please do not hesitate to call our Shareholder Relations department at (301) 951-6122.

As of June 30, 2004, American Capital shareholders have enjoyed a total return of 242% since the Company's IPO - an annualized return of 20%, assuming reinvestment of dividends. American Capital has declared a total of $14.52 per share in dividends since its August 1997 IPO.

American Capital is a publicly traded buyout and mezzanine fund with capital resources over $3 billion. American Capital is an investor in and sponsor of management and employee buyouts; invests in private equity sponsored buyouts, and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.

Companies interested in learning more about American Capital's flexible financing should contact Mark Opel, Principal and Senior Vice President, Business Development, at (800) 248-9340, or visit our website.

This press release contains forward-looking statements. 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.