FOR IMMEDIATE RELEASE:
May 15, 2006

Contact
Doug Cooper, Managing Director, Commercial Real Estate Asset Management Group (301) 951-6122
Brian Maney, Director, Corporate Communications (301) 951-6122

American Capital Invests $66 Million in Wachovia Bank Commercial Mortgage Backed Security Trust 2006-C23

Bethesda, MD - May 15, 2006 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $66 million in the BB+, BB, BB-, B+, B, B- and non-rated tranches of bonds issued by Wachovia Bank Commercial Mortgage Trust 2006-C23 (2006-C23), a $4.2 billion commercial mortgage backed security trust (CMBS).  The bonds were issued off a shelf registration statement filed by Wachovia Commercial Mortgage Securities Inc.  This investment amount represents a 51% discount to the $130 million face value of these bonds.  The trust is a pool of commercial mortgage loans sold to the trust by Wachovia Bank N.A., Nomura Credit & Capital Inc. and Artesia Mortgage Capital Corporation.  The portfolio is comprised of 305 loans secured by first liens on 344 properties, 81% of which are commercial properties.

"We are pleased with the progress of our Commercial Real Estate Asset Management Group.  It is one of approximately ten investors in this asset class," said American Capital Chairman, President and CEO Malon Wilkus.  "The Commercial Real Estate Asset Management Group started in late 2005 and has invested in two of the largest commercial mortgage securitizations.  Our due diligence includes site visits on virtually all properties, review of highly detailed due diligence materials on each property, including third party reports and commercial tenant lists, and review of highly detailed sets of aggregate pool data.  In the course of due diligence we reject sub-standard mortgages from the asset pool and reprice the risk on certain mortgages.  We believe we set a high standard for due diligence in this sector."

American Capital has invested approximately $3.8 billion in the last twelve months, approximately $1.3 billion year to date and $557 million quarter to date.  These amounts do not include American Capital's unfunded equity commitment and debt funded to its portfolio company European Capital.  Since the establishment of American Capital's Commercial Real Estate Asset Management Group over seven months ago, American Capital has invested $154 million in the unrated tranches through BBB- tranches of CMBS.  For more information about American Capital's portfolio, click here.

"We are excited to have completed American Capital's second CMBS investment, one of the largest CMBS transactions ever brought to market.  We were particularly attracted to this investment because the pool is highly diversified by geography and property type," said American Capital Managing Director Doug Cooper.  "Additionally, this is our first CMBS investment led by Wachovia and their partners Nomura and Artesia, furthering American Capital's relationship with three market leaders in the CMBS industry."

The tranches, along with ratings by Moody and S&P and corresponding face values are shown below.  American Capital invested in tranches L through S.  American Capital acquired these tranches at a 51% discount to the total face value of the tranches.  The average loan balance for 2006-C23 is $13.9 million while the average loan balance per mortgaged property is $12.3 million.  MAI appraisals performed on the underlying properties result in a weighted average loan amount to property value of 72%.

* A minority of the BB+ to BB- bonds were acquired by another party.

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 private and small public companies and through its asset management business is a manager of debt and equity investments in private companies and commercial loan obligations. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations.

As of December 31, 2005, American Capital shareholders have enjoyed a total return of 405% since the Company's IPO - an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $868 million in dividends and paid$20.73 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.