American Capital Announces Closure of European Capital Financial Services’ Frankfurt Office

BETHESDA, Maryland -

American Capital Ltd. (Nasdaq: ACAS), parent company of European Capital Financial Services Ltd. (”ECFS”), today announced the closure of its Frankfurt affiliate. The closure of the Frankfurt office is in response to the global downturn in the private equity markets over the past two years. The assets originated by the Frankfurt office of European Capital will continue to be owned by European Capital Limited and continue to be managed by the London branch of ECFS, headed by Nathalie Faure Beaulieu.

“We would like to thank Robert von Finckenstein, Managing Director Germany, and his team for their valuable contribution in building a significant Mezzanine franchise in the DACH region over the past two and a half years,” said Ira Wagner, President of ECFS. “In support of notable international private equity firms the Frankfurt office has invested a total of approximately euro 153 million in Euro-Druckservice, Norma Group, Hofmann Menu, DruckChemie and Stabilus, which we continue to believe are market leading companies with strong business models.”

ABOUT EUROPEAN CAPITAL

European Capital is an investment company for pan-European equity, mezzanine and senior debt investments. It is managed by European Capital Financial Services (Guernsey) Limited (”ECFSG” or the “Investment Manager”), a wholly-owned affiliate of American Capital Ltd.

European Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts and provides capital directly to private and public companies headquartered primarily in Europe. European Capital generally invests between euro 5 million and euro 100 million per transaction in equity, mezzanine debt and senior debt to fund growth, acquisitions and recapitalizations. For further information, please refer to www.EuropeanCapital.com.

ABOUT AMERICAN CAPITAL

American Capital is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has US$11 billion(1) in capital resources under management and nine offices in the U.S., Europe and Asia. For further information, please refer to www.AmericanCapital.com.

(1) As of June 30, 2009.

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.

Contact: Investors - +1-301-951-5917 Media - +1-301-968-9400

Source: American Capital Ltd.

American Capital Ltd. Investors, +1-301-951-5917, or Media, +1-301-968-9400