FOR IMMEDIATE RELEASE:
February 1, 2006

Contact
L. Thomas Gregory, Managing Director (312) 681-7400
Jonathan Leiman, Principal (312) 681-7400

Sav Holdings Provides State-of-the-Art Audio Visuals

By Linda Corman

Founded 70 years ago, SAV Holdings, Inc. began as a provider of slide and film projection for school, church and other local organizations' events in St. Louis, Missouri. As a trend towards holding business meetings and conventions accelerated, SAV expanded its business but remained focused on St. Louis, a popular convention destination. The company gradually acquired a national reputation for quality service and equipment and in 1980 began expanding outside of its home base. It is now the second largest outsourced provider of the most sophisticated audio-visual equipment and related services to hotels and other leading convention and meeting centers nationwide. In addition to being the exclusive equipment and service provider to many major hotels, it provides outsourced business center services to hotels as well as audio-visual services to clients independent of its hotel contracts.

In the fourth quarter of 2005, American Capital Strategies, Ltd. (NASDAQ: ACAS), acquired SAV. In addition to American Capital's investment in SAV, LaSalle Bank is providing a revolving credit facility and, along with Wachovia Bank, invested in a senior term loan. SAV's management also invested in the equity.

SAV's major business is providing projection, audio, lighting and auxiliary equipment for large companies, associations and other interest groups holding conventions and meetings at premier hotels and resorts. It has customers in nearly 40 major cities in the United States. In each of its hotels, SAV maintains fully equipped and staffed offices. Between 2000 and 2004, SAV enjoyed a contract renewal rate of over 90%. In 1992, SAV added an event services business through which it provides audio visual equipment and services to satisfied customers from its hotels business who seek services outside of the hotels and resorts with which SAV has contracts.

"SAV is the industry's quality leader, providing services to many of the finest hotels in the United States," said Greg Diekemper, the company's President and COO. "With operations in the United States, Canada, Mexico and the Caribbean, SAV is ideally situated to be available virtually anywhere and any time. Combining cutting edge equipment and skilled technicians, SAV has acquired a national reputation for quality, service and technology."

SAV has joined American Capital Strategies' portfolio of more than 150 companies in a wide range of industries. Since 1997, ACAS has invested more than $7 billion in middle market companies. For more information about American Capital's portfolio click here.

The United States' audio visual rental and service for three-, four- and five-star hotels is an estimated $700 million industry, with outsourced providers like SAV having captured about 75% of the national hotel market. Outsourced audio visual providers fall into three categories - national companies like SAV that have competitive pricing and high quality equipment, regional companies that offer personalized services, and local providers, who have difficulty furnishing the most state-of-the art equipment.

The industry is heavily dependent on trends in the hospitality industry overall, particularly in the upscale and upper upscale hotel markets because a large proportion of the conferences, conventions, trade shows and other offsite meetings that include audio visual are held in these locations. After several slow years and a trough in 2002, the hospitality industry is expected to enjoy a resurgence in occupancy, room rates and other key measures in the next few years. SAV, recognized as the quality leader in its industry, has performed well in favorable and unfavorable markets. It maintains a competitive edge with internal and external training programs that facilitate recruiting, bringing new employees up to speed quickly and instilling a sales culture in its employees.

SAV is anticipating significant growth from new contracts. Favorable industry trends, combined with the company's detail-oriented, experienced and passionate management team should guarantee that SAV will continue to be the company of choice for state-of-the-art audio visual outsourcing.