FOR IMMEDIATE RELEASE:
October 12, 2007

Contact
Tom McHale, Senior Vice President, Finance (301) 951-6122
Justin Cressall, Vice President, Equity Capital Markets (301) 951-6122
Amanda Cuthbertson, Director, Investor Relations (301) 951-6122

AMERICAN CAPITAL WILL REPORT Q3 2007 RESULTS ON OCTOBER 30
Shareholder Call Scheduled for October 31

Bethesda, MD – October 12, 2007 – American Capital Strategies Ltd. (Nasdaq: ACAS), announced today it will report third quarter 2007 earnings on Tuesday, October 30, 2007.  American Capital invites shareholders, prospective shareholders and analysts to attend the American Capital Shareholder Call on Wednesday, October 31 at 11:00 am ET. The dial in number will be (888) 428-4480.  International callers should dial +1 (651) 291-5254.  Please advise the operator you are dialing in for the American Capital Shareholder Call.

Point your browser to www.AmericanCapital.com and click on the Q3 2007 Shareholder Call Slide Show button.

BEFORE THE CALL:
REVIEW SLIDE PRESENTATION IN ADVANCE OF THE SHAREHOLDER CALL
The quarterly shareholder presentation includes a slide presentation to accompany the call that participants may download and print prior to the call.  You may wish to take the time to review the slides in advance of the Shareholder Call.

DURING THE CALL:
VIEW STREAMING SLIDE PRESENTATION DURING THE SHAREHOLDER CALL
During the Shareholder Call you may watch and listen to the webcast or listen to the Shareholder Call by phone and step through the slides at your own pace.

AFTER THE CALL:
LISTEN AND VIEW AUDIO SLIDE PRESENTATION AFTER THE CALL
The audio of the Shareholder Call combined with the slide presentation will be made available on our website after the call on October 31.  An archive of our audio and slide presentations of our quarterly shareholder calls can be found in the Investor Relations section of our website at www.AmericanCapital.com.

AUDIO ONLY PRESENTATION AVAILABLE AFTER THE SHAREHOLDER CALL:
There will be a phone recording available from 9:30 pm Wednesday, October 31 until 11:59 pm Wednesday, November 14.  If you are interested in hearing the recording of the presentation, please dial (800) 475-6701.  International callers may dial +1 (320) 365-3844.  The access code for both domestic and international callers is 889559.

For further information or questions, please do not hesitate to call our Investor Relations Department at (301) 951-6122.

ABOUT AMERICAN CAPITAL

American Capital is the only alternative asset management company that is a member of the S&P 500.  With $17 billion in assets under management¹, including its investments in externally managed funds, American Capital is the largest U.S. publicly traded private equity fund and one of the largest publicly traded alternative asset managers.  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 September 30, 2007, American Capital shareholders have enjoyed a total return of 596% since the Company's IPO — an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $1.9 billion in dividends and paid $25.16 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.

¹Assets Under Management is an estimate of internally and externally managed assets as of September 30, 2007 and does not include any fair value adjustments subsequent to June 30, 2007.