FOR IMMEDIATE RELEASE:
June 8, 2006

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

American Capital Invests in One Stop Buyout™ of United Food Group

Bethesda, MD - June 8, 2006 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested in the One Stop Buyout™ of United Food Group LLC ("UFG"), a value-added processor of fresh, frozen and fully-cooked beef products. American Capital's investment takes the form of senior term loans, senior and junior subordinated debt and preferred and common equity.  American Capital is also providing a revolving credit facility.  UFG management is investing in equity.

"Our One Stop Buyout™ of United Food Group, the leading regional player in value-added beef products on the west coast, supports the continued growth of a well-established company in one of the fastest growing markets in the country," said American Capital Regional Managing Director Darin Winn.  "We are delighted to be adding UFG to our roster of portfolio companies and to have the opportunity to build on the strong and loyal customer base and superior product offerings that UFG's seasoned management has developed."

American Capital has invested approximately $4.1 billion in the last twelve months, approximately $1.8 billion year to date and approximatley $1.1 billion quarter to date.  These amounts do not include American Capital's unfunded equity commitment and debt funded to its portfolio company European Capital.  For more information about American Capital's portfolio click here.

"UFG is the largest processor of ground beef on the west coast and uniquely offers a full range of branded value-added ground beef and fully cooked products to both retail and food service customers," said American Capital Managing Director Frank Do.  "The Company is strategically located in southern California proximate to deep-water ports, meat suppliers and one of the most rapidly growing populations in the country.  UFG's scale enables it to efficiently operate its many production lines, source high quality meat from multiple suppliers and maintain a production buffer so that it can satisfy customers' urgent shipment requests.  Its state-of-the-art manufacturing equipment and facilities, strict quality control measures and impeccable record for food safety, as well as its emphasis on service and partnering with customers, have produced strong long-term relationships with many of the largest and highest profile food service and grocery companies."

"UFG is well positioned to take advantage of steady anticipated growth across its customer base and its strong reputation and technology can be leveraged to win both new food service and retail customers," said American Capital Vice President Bill Bujake.  "We expect to expand the Company's presence into other areas of the country through acquisitions, allowing it to compete for national accounts.  At the same time, innovative research and development activities will continue to be an ongoing source of new products and attractive growth opportunities."

United Food Group was founded in 1995.  UFG produces three principal products for its retail customers: chubs, which are fresh or frozen beef packaged in a plastic casing, frozen patties and modified atmosphere packaging (MAP) or case-ready products.  Its principal food service line products are fresh and frozen hamburger patties, cooked kettle such as taco meat and chili and cooked charbroiled hamburger patties.  The Company has two adjacent facilities in Los Angeles, CA and nearly 500 employees.  UFG's customers include major grocery stores and fast food restaurants.   In 2005, the Company generated sales of approximately $450 million.

"We are delighted with American Capital's investment in our company," said United Food Group President Larry Cohen.  "Its investment flexibility and ability to execute a One Stop Buyout™ are just what UFG needs as it looks forward to take advantage of expanding growth opportunities."

ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $7.7 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 invests up to $300 million per company.

As of May 31, 2006, American Capital shareholders have enjoyed a total return of 396% since the Company's IPO - an annualized return of 20%, assuming reinvestment of dividends..  American Capital has paid a total of $1.1 billion in dividends and paid or declared $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 www.AmericanCapital.com.

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.

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