FOR IMMEDIATE RELEASE:
February 25, 2005

Contact
Brian Maney, Director, Corporate Communications (301) 951-6122

AMERICAN CAPITAL INVESTS $108 MILLION IN BUYOUT OF FUTURELOGIC

Bethesda, MD - February 25, 2005 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $108 million in the buyout of FutureLogic Inc., a leading designer and developer of customized small format embedded thermal printing solutions. American Capital has been a minority investor in FutureLogic since December 2002. American Capital's new investment takes the form of senior term loans, senior and junior subordinated debt and common equity. American Capital is rolling over its existing common equity and warrants and is also providing a revolving credit facility. FutureLogic management is rolling over its common equity. American Capital now owns approximately 64% of FutureLogic on a fully diluted basis.

"Since our initial investment in 2002, FutureLogic has shown impressive growth and performed ahead of expectations," said American Capital COO Ira Wagner. "Our buyout of FutureLogic demonstrates our firm commitment to growing our portfolio companies; building a long term relationship with management teams and assisting them in creating value; and finally, our capability to underwrite and fund the entire capital structure of a buyout."

American Capital invested approximately $2 billion in 2004, approximately $750 million in the fourth quarter of 2004 and has invested approximately $300 million year to date. For more information about American Capital's portfolio click here.

Founded in 1983, Glendale, CA-based FutureLogic is the leading supplier for thermal printers found in cashless slot machines. Thermal printing is the accepted technology for transaction-based receipt printing, such as a voucher for a slot machine, a bar code label used for tracking purposes and pay-at-the-pump gasoline purchases. Customers include International Gaming Technology (NYSE:IGT), Alliance Gaming Corp. (NYSE:AGI), WMS Industries Inc. (NYSE: WMS), Atronic Americas LLC, Cardinal Health Inc. (NYSE:CAH), Aristocrat Technologies, Konami Gaming Inc., Advanced Electronic Systems Inc., Multimedia Games Inc. and Spielo. The Company has four manufacturing, distribution and sales facilities located in Arizona, Nevada, Ohio and London and employs over 100.

"Over the last few years, American Capital has proven to be a supportive partner of FutureLogic, understanding and respecting our business, backing our vision for growth and providing the appropriate financial and operational resources for us to move forward," said FutureLogic President Anthony DiMarco. "We look forward to working with American Capital in the years ahead as FutureLogic continues to provide innovative, customized products to the North American and international gaming markets, as well as other niche markets."

For more information about FutureLogic's innovative thermal printing solutions click here.

ABOUT AMERICAN CAPITAL

American Capital is a publicly traded buyout and mezzanine fund with capital resources of more than $4.8 billion. American Capital is an investor in and sponsor of management and employee buyouts, invests in private equity 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.

As of January 31, 2005, American Capital shareholders have enjoyed a total return of 339% since the Company's IPO - an annualized return of 22%, assuming reinvestment of dividends. American Capital has paid a total of $651 million in dividends and paid or declared $16.76 dividends per share since its August 1997 IPO 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 our website.

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 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, national or international economic conditions, or changes in the conditions of the industries in which American Capital has made investments.

This announcement is neither an offer to sell nor a solicitation to buy securities.
This announcement appears as a matter of record only.