FOR IMMEDIATE RELEASE:
June 29, 2007

Contact
Natasha Volyanskaya, Principal (415) 591-0120
Eric Heith , Vice President (415) 591-0120
Brian Maney, Director, Corporate Communications (301) 951-6122

AMERICAN CAPITAL PROVIDES ADDITIONAL FINANCING TO SUPPORT STRATEGIC ACQUISITION BY PORTFOLIO COMPANY VISION SOLUTIONS

Bethesda, MD – June 29, 2007 – American Capital Strategies Ltd. (Nasdaq:ACAS)announced today that it has invested additional second lien financing in its portfolio company Vision Solutions Inc., a leading developer of high availability, disaster recovery and data management software solutions for the System i market.   American Capital’s investment supports the acquisition of Lakeview Technology Inc., which also produces high availability software.   High availability software creates and maintains copies of computer system elements, providing an efficient backup system in response to power outages, disasters and other unplanned as well as planned computer system downtimes, such as hardware and software upgrades.  American Capital previously provided second lien debt and equity financing to support the October 2006 merger of Vision Solutions and iTera Inc.  Thoma Cressey Bravo Inc. is the majority owner of Vision Solutions.  Vision Solution’s management team and American Capital hold minority equity stakes in Vision Solutions.

“We are pleased to partner again with Thoma Cressey Bravo and support Vision Solutions’ second strategic acquisition in the past seven months,” said Darin Winn, American Capital Regional Managing Director.  “Thoma Cressey Bravo has significant experience in the software industry and has completed many transactions across several platform companies.  We look forward to continuing to work with them to grow the Vision Solutions platform.”

American Capital has invested directly and through its funds under management $9.5 billion in the last twelve months, $5.4 billion year to date and over $3.5 billion quarter to date.  Not including funds under management, American Capital has invested $6.8 billion in the last twelve months, $3.9 billion year to date and over $2.5 billion quarter to date.  For more information about American Capital’s portfolio, click here.

“The acquisition of Lakeview positions Vision Solutions as the clear market leader in the global System i high availability market,” said Natasha Volyanskaya, American Capital Principal.  “The combination of innovative, industry leading R&D talent will accelerate product development initiatives, providing businesses of all sizes with access to leading-edge system resiliency and data management technology that is tailored to their needs, affordable and easy to use.”

“Customers’ constant heavy reliance on their key applications and the increasing level and complexity of industry and SEC compliance regulations are fueling the need for high availability software.  By providing a full suite of business continuity solutions to match this high demand, Vision Solutions enjoys extremely high customer renewal rates,” said Eric Heith, American Capital Vice President.  “The Lakeview acquisition nearly doubles the size of the Vision Solutions organization and expands its worldwide distribution and service offerings for nearly 6,000 customers.”

Lakeview Technology is a premier information availability company, providing high availability, data protection and data integration software solutions and services to businesses.  Headquartered near Chicago, IL, Lakeview serves customers from offices in the U.S., Europe and Asia and through an extensive, growing partner network.

As IBM Corporation’s largest high availability Premier Business Partner, Vision Solutions is a recognized System i-solutions leader.  The Company works closely with an international network of channel partners and IBM to deliver its industry-leading software, along with a powerful portfolio of services and support for protecting mission-critical applications and information from planned and unplanned downtime.  Vision Solutions serves customers in a broad range of industries, including banking, retail, business services and pharmaceuticals development.  Vision Solutions has corporate offices headquarters in Irvine, CA and offices worldwide.

“American Capital’s deep knowledge and understanding of Vision Solutions’ business and their commitment to growing the Company made them the ideal partner for this add-on transaction,” said Seth Boro, a Thoma Cressey Bravo Vice President.  “We look forward to a continued relationship with American Capital as we build Vision Solutions’ platform in the software market.”

For more information about American Capital’s initial investment in Vision Solutions, go to www.AmericanCapital.com/our_portfolio/companies/vision_solutions.xml.

ABOUT AMERICAN CAPITAL

American Capital is the third largest U.S. publicly traded alternative asset manager with $12 billion in assets under management (third to The Blackstone Group (NYSE: BX) and Fortress (FIG)).  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 and its affiliates invest from $5 million to $800 million per company in North America and €5 million to €500 million per company in Europe.

As of May 31, 2007, American Capital shareholders have enjoyed a total return of 656% since the Company's IPO—an annualized return of 23%, assuming reinvestment of dividends.  American Capital has paid a total of $1.6 billion in dividends and paid or declared $24.24 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 or www.EuropeanCapital.com.

ABOUT THOMA CRESSEY BRAVO, INC.

Thoma Cressey Bravo is a leading private equity investment firm that has been providing equity and strategic support to management teams building companies for more than 25 years.  In the software industry, Thoma Cressey has amassed a portfolio of software companies with combined earnings in excess of $300 million. Thoma Cressey's investment focus is on companies in the software, healthcare, business services and consumer products industries. Thoma Cressey currently manages approximately $2 billion of equity capital.

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.