FOR IMMEDIATE RELEASE:
May 9, 2005

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

ASTRODYNE POWERS UP

By Maureen Flanagan

The Astrodyne Corporation, founded in 1992, manufactures AC/DC power supplies and DC/DC converters. Offering a broad product line of more than 2,000 SKUs, the company focuses on small volume orders that need rapid fulfillment and customization to meet customer requirements. Headquartered in Taunton, MA, Astrodyne markets its products through its direct mail catalog and the Internet. Astrodyne's power supplies and converters are found throughout diverse end-markets, including industrial controls, test and measurement devices, medical equipment and telecommunications products.

In an April 29, 2005 buyout, Astrodyne was acquired by American Capital Strategies, Ltd. (Nasdaq: ACAS) from the company's founders and other shareholders. American Capital provided $31 million of financing that consisted of a revolving line of credit, a senior term loan, senior subordinated debt and convertible preferred equity. Astrodyne's senior management also reinvested a portion of their equity investment.

"Astrodyne has made its mark as a competitively priced, high quality and dependable source for AC/DC and DC/DC converters," said Bob Butler, Astrodyne's Vice President of Sales & Marketing. "With our focus on low-volume orders that are not typically handled directly by large manufacturers, the company is positioned for growth."

Astrodyne's AC/DC power supplies are sold into a variety of end-markets, including industrial automation, instrumentation and medical. The company primarily sells "ultra low power" products that target applications using 10-65 watts, although its products cover a range between 5 and 1,500 watts. The company is highly efficient at manufacturing a broad product line for multiple applications and requirements. Products vary in size, layout, and type of enclosure and mounting. Whenever necessary, Astrodyne customizes products.

DC/DC converters are modules or printed circuit board assemblies that are mounted with individual electronic components and convert one DC voltage to another. These converters are used in telecommunications, computer, industrial control and instrumentation applications, such as powering microprocessor chips, integrated circuits and other internal electronic components. The products vary by factors such as size, output, enclosure and mounting type, and specialized technologies.

The company markets its products under the Astrodyne brand name to design engineers through its catalog and website (www.astrodyne.com).

Astrodyne competes in the market for low-volume orders (less than 5,000 units), a segment of the global $3.8 billion power supply and converter industry. Astrodyne's ability to meet product-specific design characteristics coupled with rapid order fulfillment and technical support have made the company a valued supplier. In 2001, the company established Astrodyne Pacific, a manufacturing joint venture in Taipei, Taiwan.

Astrodyne joins American Capital's portfolio of more than 120 companies in a wide range of industries. Since 1997 American Capital has invested more than $5 billion in the middle market. For more information about American Capital's portfolio click here.

Astrodyne is positioned to take advantage of market opportunities, offering new products and enhancements. Over the past three years, the company has introduced a number of new product lines with designs focused on adding new functions to the product line and decreasing the size of existing products.

In 2003 Astrodyne introduced DIN-rail products and completed its full line in 2004. DIN-rail is a European standard for mounting different products in control boxes in industrial applications and is rapidly gaining popularity in the U.S. Other new products include medically approved components, PCI systems designed to power the server market, and external adapter products.

With plentiful opportunities on the horizon, Astrodyne is set to surge ahead with power and profits.