FOR IMMEDIATE RELEASE:
February 2, 2007

Contact

Myung Yi, Managing Director, Special Situations (301) 951-6122
David McReynolds, Vice President, Special Situations (310) 806-6296
Brian Maney, Director, Corporate Communications (301) 951-6122

AMERICAN CAPITAL INVESTS $22 MILLION IN TRIGEANT

Bethesda, MD – February 2, 2007 – American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that in the fourth quarter of 2006 it invested $22 million in Trigeant Ltd., a refiner of heavy and sour crude stock into asphalt for paving and roofing.  American Capital’s investment takes the form of a senior secured term loan.  The investment will be used to refinance existing indebtedness and for capital investment in a new distribution facility.

“We are pleased to be investing in Trigeant to support its growth and expansion,” said American Capital Managing Director Gordon O’Brien.  “Our participation is indicative of the increasing array of situations in which our rapidly growing Special Situations Group is providing critical and flexible capital under tight turnaround times.”

American Capital invested directly and through its funds under management $6.7 billion in 2006 and $2.2 billion in the fourth quarter of 2006 and has invested $697 million in 2007 year to date.  Not including funds under management, American Capital invested $5.1 billion in 2006 and $1.7 billion in the fourth quarter of 2006 and has invested $660 million in 2007 year to date.  Since its inception in early 2005, the Special Situations Group has invested $290 million in 6 portfolio companies, including nearly $100 million in the fourth quarter of 2006.  The Special Situations Group has led buyouts, invested alongside other sponsors, provided debtor-in-possession (DIP) financing and provided direct recapitalization financing.  For more information about American Capital’s portfolio, click here.

“Trigeant is one of the few refiners nationwide that focuses on asphalt production,” said American Capital Managing Director Myung Yi.  “By optimizing asphalt production rather than producing it as a by-product, Trigeant is uniquely positioned to meet a growing gap between asphalt demand and supply.  Driven by the 2005 federal highway spending bill and the need to replace the U.S.’s aging highway system, asphalt demand is on a steady growth trajectory.”  

“Trigeant is strategically located adjacent to the Corpus Christi ship channel, providing convenient access for receiving and sending finished product via tanker, rail, truck and barge,” said American Capital Vice President David McReynolds.  “With the addition of a retail truck distribution facility, Trigeant will further leverage its strategic advantage, expanding direct sales of its high grade, higher margin asphalt.  In addition, Trigeant’s planned upgrading of its refining capabilities will enable further processing of its light-end products into higher margin products.”

Trigeant, founded in 2001, refines heavy and sour crude stock into asphalt for paving and roofing.  The Company produces a complete range of asphalt grades that meet the highest U.S. government standards.  It also produces distillate products, including preflash distillate, marine diesel oil and vacuum gas oil, which are sold to local refineries for further processing.  Trigeant’s asphalt customers are primarily wholesalers and vertically integrated companies that perform paving work.  Its distillate customers are major complex refiners. The Company’s corporate offices are located in Boca Raton, FL and Houston, TX, while its refinery operations are located in Corpus Christi, TX.

ABOUT THE AMERICAN CAPITAL SPECIAL SITUATIONS GROUP

American Capital’s Special Situations Group has the flexibility to invest from $20 million to $500 million per transaction in a variety of investments.  The Special Situations Group targets distressed, turnaround and other complex investments, providing flexible capital and a wealth of turnaround experience to middle market companies.  It targets buyouts across all industries involving operational turnarounds, section 363 auctions, corporate orphans, portfolio add-ons and complex management buyouts.  It also provides DIP loans, exit financings, mezzanine financings for sponsored buyouts, second lien refinancings and direct lending to distressed companies.  Companies interested in learning more about American Capital's Special Situations Group should contact Myung Yi, Managing Director at 301-951-6122, Dean Anderson, Managing Director at (312) 334-1446, or David McReynolds, Vice President at (310) 806-6296.

ABOUT AMERICAN CAPITAL

American Capital is the largest U.S. publicly traded alternative asset manager with $12 billion in capital resources under management.  American Capital, both directly and through its global asset management business, is an investor in management and employee buyouts, private equity buyouts and early stage and mature private and public companies.  American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations.  American Capital invests from $5 million to $500 million in North America and €5 million to €400 million in Europe.

As of January 31, 2007, American Capital shareholders have enjoyed a total return of 655% since the Company's IPO - an annualized return of 24%, assuming reinvestment of dividends.  American Capital has paid a total of $1.4 billion in dividends and paid $22.44 dividends per share since going public in August 1997 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 or www.EuropeanCapital.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 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.