FOR IMMEDIATE RELEASE:
April 10, 2006

Contact
Brian Maney, Director, Corporate Communications (301) 951-6122
Jessica Ashapa, BluePoint Venture Marketing (781) 861-7800

American Capital Announces Appointment of Virginia M. Turezyn As Managing Director, Technology Group

Bethesda, MD - April 10, 2006 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced the addition of Virginia M. Turezyn as Managing Director to lead the California office of the American Capital Technology Group, where she will focus on early stage technology investments.    Her experience includes over 22 years of technology investing in areas that include software and services, consumer Internet and digital media.

American Capital announced earlier this year an expansion of its investment activities in the technology sector with the opening of a Boston office led by Andy Fillat, Managing Director and Tony Abate, Managing Director.  Further expanding that team, Turezyn will be based in Palo Alto, California, and will be responsible for establishing the American Capital Technology Group's west coast operations by focusing on investment and partnering opportunities in the region's technology sector.

"The investment professionals in our Technology Group possess a diverse set of capabilities and Virginia's addition to the team, along with her wealth of knowledge and experience, underscores this standard of excellence," said American Capital Chairman, President and CEO Malon Wilkus.   "We are confident that Virginia will successfully lead the west coast operations with her keen ability to discern investment opportunities and work in partnership with entrepreneurs to grow their companies and to provide operational support as well as financial backing."

Prior to joining the American Capital Technology Group, Turezyn served as Managing Director at Constellation Ventures, an affiliate of Bear Stearns Asset Management.  Turezyn was a Co-founder and Managing Director of Infinity Capital, LLC and its predecessor company Information Technology Ventures and served as Vice President in the Venture Capital Group at Morgan Stanley & Co., where she established a west coast presence and venture capital practice.

Turezyn most recently served on the boards of Avolent, K12, FathomOnline, Orchestria, Siperian, United Devices and Webify. Her past successes include: Aspect Telecommunications, Aurum Software, E.piphany, Exodus Communications, HomeClub, Nellcor, Relational Technology/Ingres and Webline Communications.

"American Capital is distinguished from most of our competitors by our ability to provide one-stop financing, funding senior debt, subordinated debt and equity. This, in addition to our low cost, permanent capital, extensive origination system and quick and efficient due diligence and investment review, should provide us considerable competitive advantages as we expand our investments in technology," said American Capital Managing Director Gordon O'Brien. "In particular, our 22 person Operations Team will provide critical development assistance to both early stage and mature technology companies."

"American Capital is a very strong platform for doing technology transactions because we can focus on the sectors and stages appropriate to the market cycles rather than limiting ourselves based on a fund's timing, size, or charter," said Mr. Fillat. "In addition, American Capital has one of the largest streams of investment opportunities in the industry. That, together with its flexible capital, extensive knowledge and research base will open up more transaction opportunities and allow us to address them faster and more thoroughly."

ABOUT AMERICAN CAPITAL TECHNOLOGY
American Capital has approximately $1 billion in technology investments in its existing portfolio.  These companies generally are mature, high performing, cash flowing companies with excellent growth rates.    They operate across many industry sectors and are driven by a broad range of technologies.   The Technology Group extends American Capital's existing technology investment business by investing in earlier stage technology companies.

Launched in February 2006, the American Capital Technology Group invests in early, middle and late stage technology companies as well as mature companies driven in significant part by a specific technology.   With the flexibility to invest senior debt, subordinated debt and equity from $5 million in early stage companies to $300 million in more established companies, the American Capital Technology Group can leverage its capital base and domain expertise to build category-leading companies.

ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $7 billion. American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, provides capital directly to early stage and mature private and small public companies and through its asset management business is a manager of debt and equity investments in private companies.  American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations.   American Capital can invest up to $300 million per company.

As of March 31, 2006, American Capital shareholders have enjoyed a total return of 409% since the Company's IPO - an annualized return of 21%, assuming reinvestment of dividends.   American Capital has paid a total of $1 billion in dividends and paid $19.91 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.

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.