FOR IMMEDIATE RELEASE:
November 21, 2005

Contact
Frank Do, Managing Director (310) 806-6280
Kimberly Reed, Vice President (310) 806-6280
Brian Maney, Director, Corporate Communications (301) 951-6122

VALUE PLASTICS MAKES THE RIGHT CONNECTIONS

By Maureen Flanagan

Value Plastics, Inc., based in Fort Collins, CO, was founded in 1968 as a custom injection molder. The company built a reputation for high quality products and exceptional service. In the 1980s, spurred by the increasing demand for disposable medical products, Value Plastics focused on developing its line of barbed connector products for the healthcare market. These connectors have become a vital component for linking tubes that transport fluids such as blood, air, IV solutions and medications. Widely used in healthcare and medical applications, the company's connectors are also employed in industrial and specialty application markets.

Today, Value Plastics manufactures the most sophisticated and largest breadth of barbed fitted connectors. Many of its products are customized and carried only by Value Plastics. With a reputation for superior product quality, reliability, on-time delivery and customer service, Value Plastics has earned a leading share of its served market.

In an October 14, 2005 transaction, American Capital Strategies, Ltd. (Nasdaq:ACAS) provided a financing package to recapitalize Value Plastics. Financing consisted of a revolving credit facility, senior term loans, subordinated debt and common equity. The company's senior management also made an equity investment alongside American Capital.

Value Plastics has joined American Capital's portfolio of more than 140 companies in a wide range of industries. Since 1997 American Capital has invested approximately $7 billion in the middle market. For more information about its portfolio click here.

"Over the past few years, Value Plastics' sales and profits have increased significantly and we expect that to continue,"said Bruce Williams, the company's President and CEO. "Longer life expectancies, demographic trends towards an aging population, new treatments and applications as well as new international markets will continue to fuel demand for the company's products."

Value Plastics' proprietary lines of plastic connectors include luer fittings, tube-to-tube fittings, blood pressure components and threaded fittings. To ensure high quality and product application reliability, the company's products are designed with a single barb mechanical sealing feature. The barb is a sharp conical projection that extends backwards and prevents extraction once inserted into the internal diameter of a tube. Due to the single barb design, there is no mold parting line on the critical sealing surface, which results in superior quality and differentiates the company's offerings from competitive products.

The company makes six barb styles for a wide range of tubing types. The barbs are sized and configured with complementary features to create more than 2,800 SKUs in over 400 separate configurations. In addition to healthcare applications, the connectors are used in a wide variety of industrial and commercial applications demanding high precision components.

Value Plastics sells its connectors to a diverse base of global customers, including top tier medical companies and a variety of industrial manufacturers. Products are marketed through a direct sales force, the company's web site (www.valueplastics.com), a mail order catalog and international distributors

"Led by an experienced team of professionals with an average of 13 years of healthcare experience, Value Plastics is pursuing opportunities that will expand existing markets and further develop new ones," said Frank Do, American Capital Managing Director.

The U.S. fluid connector industry for healthcare applications is estimated to be over $500 million, divided between third party manufacturers like Value Plastics and in-house manufacturing. Demand for the company's connectors is expected to continue to be strong in the healthcare markets. Due to the expansion of U.S. elderly demographic, the healthcare and medical device sector is projected to grow 12-15% annually.

The evolution of healthcare programs, particularly in developing countries, will enable the company to further expand international operations. Value Plastics plans to build on its success with European distributors and extend its geographic distribution to Asia and other prospective markets.

The company will also benefit from the trend toward outsourcing as medical OEMs continue to concentrate their efforts on their core activities of product design and marketing.

The company has opportunities to expand business from existing customers as well. Given the one-time use and disposable features of Value Plastics' products, the company anticipates the high level of repeat business to continue. Targeted marketing efforts, increased interaction between product designers and customers and enhanced website functionality are also expected to boost sales growth.

With its experienced management team, top market position and new opportunities, Value Plastics is making the right connections for future success.