FOR IMMEDIATE RELEASE:
July 7, 2005

Contact
Ian Larkin, Managing Director (312) 681-7400
Greg Long, Vice President (312) 681-7400
Brian Maney, Director, Corporate Communications (301) 951-6122

SMITHBUCKLIN HELPS ASSOCIATIONS EXCEL

By Maureen Flanagan

SmithBucklin Corporation is the world's largest association management and professional services company. Created by Bill Smith and Henry Bucklin in 1949, the company is the undisputed leader in its market. Today, more than 185 trade associations, professional societies, technology user groups and government institutes and agencies rely on SmithBucklin's expertise and services.

In a June 24, 2005 transaction, ownership of SmithBucklin transferred from the company's financial investors who had the majority interest in the company to SmithBucklin employees under a newly established Employee Stock Ownership Plan (ESOP). In support of the employee buyout, American Capital Strategies, Ltd. (Nasdaq: ACAS) provided $17 million in the form of a senior term B loan and senior subordinated debt.

"Our mission is to drive growth and build sustained competitiveness for our client organizations," said Henry S. Givray, the company's President and CEO. "In serving our clients, we place earning trust, delivering uncompromised client stewardship and building long-term relationships above all else."

Representing a wide range of end-market industries, SmithBucklin's clients have long-standing relationships with the company. More than 20% of the company's clients have been with SmithBucklin over 20 years, including the Popcorn Institute, Association of Steel Distributors, International Association of Duty Free Stores, Society of Gynecologic Oncologists and Battery Council International.

SmithBucklin's approach to full-service management involves bringing together a team of management and specialist talent led by a SmithBucklin association executive who serves as the client organization's chief staff executive. Representing approximately 85% of the company's total revenue, full-service management capabilities and services include: executive management; member and general administration; chapter management; financial management and accounting; convention and event management; exhibit and trade show management; education and programs; marketing and communications; market research and statistics; web and technology management; government relations; headquarters infrastructure; leadership and strategy development; and international capabilities.

The company also offers function or project-specific services to associations that employ their own staff but are looking for viable outsourcing solutions to help reduce costs, improve efficiencies, decrease cycle times and/or support strategic initiatives.

SmithBucklin focuses on national and international trade associations, professional societies, technology user groups and other volunteer-governed organizations with annual operating budgets ranging from $500,000 to more than $15 million. In 2000, the company expanded its services with the acquisition of Courtesy Associates, a Washington, DC-based firm offering special event, meeting and program management services primarily for the federal government.

"As the largest association management services provider, SmithBucklin offers the most complete range of professional services, human and technical resources and industry knowledge available in the industry today," said Ian Larkin, American Capital Managing Director. "Led by Givray's management team, the company has expanded its client base and is continuing to win new business at an accelerated rate. SmithBucklin expects robust growth over the coming years as it continues to drive growth for its existing client organizations, as well as secure new client organizations."

Association management outsourcing is expected to increase as more industry leaders and association directors recognize the benefits of outsourcing. These benefits include the ability to gain access to expertise in a targeted area without incurring the cost of a full-time staff, focus on core activities (e.g., membership growth and services, and event planning), and lower operating costs due to purchasing power and shared infrastructure.

In the June 2005 employee buyout, American Capital's investment was made alongside a revolving credit facility and senior term loan provided by LaSalle Bank, as well as additional financing. As a result of the transaction, SmithBucklin employees own 100% of SmithBucklin's common stock.

"It's the talent, commitment and passion of our people for our clients and for the company that drive SmithBucklin's success and growth," said Givray. "Our management team strongly feels that our people should control the destiny of SmithBucklin and as importantly, have the opportunity to experience the fulfillment of ownership."

SmithBucklin joins American Capital's portfolio of more than 130 middle market companies in a wide range of industries. Since 1997, American Capital's investment in the middle market has exceeded $5 billion. For more information about American Capital's portfolio click here.

Associations are an important component of the U.S. economy, employing nearly 300,000 people and spending more than $55 billion annually on conventions, expositions and seminars. Currently, there are approximately 7,300 national trade associations, professional societies, user groups and volunteer-governed organizations, almost half of which are in SmithBucklin's targeted market.

As the clear market leader, the company is positioned to build its client base. Setting the standard for the association management industry, SmithBucklin offers a compelling value proposition of superior customer service, client responsiveness, cost-effective management and risk mitigation. With advantages of scale added to its quality services and management expertise, SmithBucklin will continue to fulfill the key element of its mission -- fostering the growth and effectiveness of its client organizations. Now, as an employee-owned company, SmithBucklin continues to set its course at the vanguard of association management.