FOR IMMEDIATE RELEASE:
September 19, 2005

Contact
David Ehrenfest Steinglass, Managing Director (301) 951-6122
Eugene Krichevsky, Vice President (301) 951-6122
Brian Maney, Director, Corporate Communications (301) 951-6122

AMERICAN CAPITAL INVESTS $147 MILLION IN ONE STOP BUYOUT™ OF SOIL SAFE HOLDINGS

Bethesda, MD - September 19, 2005 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $147 million in the One Stop Buyout™ of Soil Safe Holdings Inc. from The Halifax Group. Soil Safe is a provider of environmental services that include the treatment, disposal and re-use of lightly contaminated soil for real estate, infrastructure development and industrial customers in the Mid-Atlantic region. American Capital's investment takes the form of senior term loans, senior and junior subordinated debt and convertible preferred equity. American Capital is also providing a revolving credit facility. The transaction also includes Soil Safe's purchase of real estate in Brandywine, MD and Soil Safe's acquisition of the California-based assets of TPS Technologies Inc., a thermal desorption treatment facility that serves the southern California market. Soil Safe management is investing in equity. Post close, American Capital owns 79% of Soil Safe, on a fully diluted basis.

"Our investment in Soil Safe demonstrates our ability to complete a complex One Stop Buyout™," said American Capital Chief Operating Officer Ira Wagner. "We are investing in an excellent environmental services provider, with strong cash flow characteristics and significant growth opportunities and also supporting the purchase of additional assets to be integrated into Soil Safe. American Capital is able to clearly differentiate itself among its competition by being capable of conducting quick, thorough in-house due diligence, working closely with management teams to create an appropriate capital structure and understanding the needs and goals of our portfolio companies."

American Capital has invested over $2.9 billion in the last twelve months, over $2.1 billion year to date and $819 million quarter to date. For more information about American Capital's portfolio click here.

"Soil Safe is one of the leading, major service providers treating soil contaminated with petroleum hydrocarbons, an important environmental service to the real estate, infrastructure development and industrial markets, among others," said American Capital Managing Director David Steinglass. "With significant barriers to entry and strong demand driven by increased brownfield site redevelopment, the need to master increasingly stringent and complex environmental regulations and limited disposal alternatives as landfill capacity shrinks, Soil Safe's established position bodes well for the Company's growth. Furthermore, Soil Safe's strategic acquisition of TPS creates a strong platform in the Los Angeles Basin, a very active brownfield redevelopment area with a large and growing volume of manufactured gas plant cleanups. The TPS acquisition is the first step in the nationalization of Soil Safe's business model."

"Soil Safe's top quality work, exceptional customer service and ability to rapidly process significant amounts of contaminated soil, up to several thousand tons per day at its large, captive sites, position it to take advantage of the increasing scarcity of disposal alternatives and a regulatory environment driving treatment of contaminated soil," said American Capital Vice President Eugene Krichevsky. "We're excited to support an experienced management team led by President and CEO Mark Smith and CFO Bob Angelo as they continue to grow Soil Safe in the years ahead."

Founded in 1989 and headquartered in Columbia, MD, Soil Safe provides soil treatment and disposal services, which are critical to any construction project that involves the excavation of lightly contaminated soil, which must be treated at permitted facilities prior to non-landfill disposal. The Company predominantly treats soil contaminated with low levels of petroleum hydrocarbons, chemical compounds that are almost all made entirely from hydrogen and carbon and originate from crude oil. Soil Safe's treatment process involves solidification, a process that physically binds or encapulates contaminants within a stabilized mass of inert, impermeable material, thereby reducing the likelihood of future leaching while making the soil structurally stable for future construction and road building. The Company serves a base of over 300 customers, including general contractors primarily involved in office construction, excavators, environmental consultants and oil companies in the Mid-Atlantic region. In addition to its headquarters, Soil Safe has operating facilities in New Jersey, Maryland and now with the TPS acquisition, in California. In 2004, Soil Safe completed approximately 1,300 different projects.

TPS, based in Adelanto, CA, was founded in 1991 and provides non-hazardous soil treatment services in southern California and is one of only two thermal treatment facilities in the region. TPS provides thermal desorption treatment services, which remove contaminants in non-hazardous soil by using heat to change the contaminants into inert gases. The Company treats soils contaminated with organic pollutants, primarily petroleum products such as gasoline, diesel fuel, jet fuel, lubricating oils, crude oil and fuel oils by-products. TPS receives soil primarily from gas stations or diesel spill sites in the Los Angeles Basin.

"American Capital's ability to work closely with our management team and understand our current needs, forthcoming plans and long-term goals made them precisely the partner we needed. We are looking forward to building our partnership with American Capital and value the support they are providing in our strategic growth initiatives," said Soil Safe President and CEO Mark Smith. "Soil Safe is now in a stronger position to move forward with our continued growth plans, particularly in expanding into new markets and soil treatment services."

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.

For more information about Soil Safe's critical soil treatment and disposal services click here.

ABOUT AMERICAN CAPITAL

American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $5.4 billion. American Capital invests in and sponsors 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 August 31, 2005, American Capital shareholders have enjoyed a total return of 411% since the Company's IPO - an annualized return of 23%, assuming reinvestment of dividends. American Capital has paid a total of $787 million in dividends and paid or declared $18.29 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.

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