FOR IMMEDIATE RELEASE:
May 12, 2005

Contact
Bowen Diehl, Principal (214) 273-6632
John Drennan, Vice President (214) 273-6636
Brian Maney, Director, Corporate Communications (301) 951-6122

ETG SHOWS STRENGTH IN TEXTILE MARKETS

By Maureen Flanagan

Engineered Textile Group, Inc., based in Greenville, SC, is a leading U.S. manufacturer of highly-engineered, specialty textile products. The high tensile strength of its webbing products - used for lifting slings, fall protection harnesses, hose sleeving and cargo restraints - ensures product and personal safety in rigorous industrial applications. The company's high quality, customized products, strong customer relationships and efficient service have earned ETG a leading share in its markets.

In a May 2005 transaction, ETG was acquired by American Capital Strategies, Ltd. (Nasdaq: ACAS). American Capital provided $57 million of financing consisting of a revolving line of credit, senior term debt, subordinated debt and preferred equity. The company's senior management team rolled over a significant equity stake.

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

"ETG delivers product quality that is vital to our customers," said Rodney L. Grandy, the company's CEO. "Demand for the company's webbing products will accelerate as end-users embrace the benefits of synthetic alternatives to wire rope, chains and cables. Increased industrial safety regulations are also driving growth in our markets."

ETG manufactures a broad line of both nylon and polyester sling webbing that are certified to hoist varying weights. To allow for product error the webbing typically has a tested break point of five times the customers' certified ratings.

The company's webbing is also used for fall protection harnesses, arrest cords and lanyards to protect workers from falls. ETG's products meet the rigorous safety requirements of industrial work sites, including new U.S. Occupational Safety and Health Administration (OSHA) regulations, adopted in the late 1990s, which continue to drive growth in the market.

ETG also produces high tensile strength nylon for hosing sleeves. These sleeves are used as part of the hydraulic systems of heavy equipment in order to protect the equipment operator. Products in development include sleeves to cover wiring bundles on aircraft and other specialized uses in the fast growing sleeving market.

The company also manufactures cargo restraint products and other niche products including disposable battery belting, sporting goods (chin straps and tennis clay court striping), waist belts, and parachute cords for the military.

Serving more than 300 customers, the company sells its webbing and fall protection products to converters and assemblers who cut and sew the straps to make a finished product for end customers. For sleeving applications, ETG works directly with OEMs and is substantially a sole source supplier to a number of its largest customers.

"ETG's significant competitive strengths have made it the leading supplier in a number of its markets," said Bowen Diehl, American Capital Principal. "The company's manufacturing expertise accommodates a wide variety of end-user demands for performance, width, color, and functionality while meeting the most exacting customer specs and certification and quality standards. ETG also specializes in quick turnaround and rapid delivery to ensure smooth operations for its customers."

With its diversified end-user portfolio, ETG is positioned to take advantage of this continuing growth. The company's products are found on construction sites, oil and gas rigs, and agricultural equipment as well in the transportation and leisure sectors. Collectively, these markets are expected to grow at a faster rate than the overall economy. Military purchases should show particularly strong gains as military spending increases and system design migrates to the lighter weight, flexible webbing products. In addition, increased regulatory oversight (OSHA regulations and the Berry Amendment requiring the U.S. military to purchase from U.S. manufacturers) have increased demand for the company's products and are spurring continued growth.

With long-standing cstomer relationships, innovative, customized products engineered to meet customer needs, and growing market demand, ETG is using the strength of fiber to tackle tough jobs ahead.