FOR IMMEDIATE RELEASE:

February 17, 2006

Contact
Jean Eichenlaub, Managing Director +33 (0)1 40 68 06 66
Stéphane Legrand, Manager, +33 (0)1 40 68 06 66
Brian Maney, Corporate Communications, +1 (301) 951-6122

European Capital Completes Second One Stop Buyout™

Paris - February 17, 2006 - European Capital, S.A. SICAR announced today it has completed the One Stop Buyout^TM of Action Sport Holding, a leading distributor of motorcycle and bicycle gear and accessories in France. European Capital's investment takes the form of senior term loans, mezzanine debt, redeemable bonds and common equity. Action Sport's management team is investing in common equity and warrants. Post close, European Capital owns approximately 88% of Action Sport, on a fully diluted basis.

"European Capital's Paris office opened eight months ago and has now completed its second One Stop Buyout^TM said Ira Wagner, President of European Capital Financial Services Limited ("European Capital Services"), the sub-investment manager of European Capital. "Action Sport is exactly the type of company in which European Capital seeks to invest: a market leader with a motivated management team and a history of solid financial performance."

European Capital has invested approximately €253 million ($300 million) in 12 companies since its formation in August of 2005. For more information about European Capital's portfolio, click here.

"Action Sport's fully owned subsidiary Royal Moto France holds a leading market position in the highly fragmented French motorcycle parts and accessories market, which is secured through its exclusive distribution rights to many strong brand names and its extensive and growing contractual network of independent retailers known as 'UVSON'," said Jean Eichenlaub, European Capital Managing Director. "In addition to its own private label brands, such as MaCadam and Techno, Action Sport has long established positive relationships with key leading brands of motorcycle and cycle gears and accessories, including Sidi, Scott, Fox, Shift, Schuberth Helme, KBC, Giro, and Bell. Action Sport has been distributing Fox Racing Inc., the global leader of specialty clothing for off-road motorcycle and bicycle riders for almost 30 years and is Fox's largest distributor in Europe."

"Action Sport has a widely acclaimed reputation for professionalism and its product offering of high quality brand names generate additional revenues for retailers," said Jacques Pancrazi, European Capital Director. "Over recent years, the Action Sport management team has implemented proven growth strategies, which we anticipate will continue to drive the Company's success. We're looking forward to working with the team, especially newly appointed President and CEO Michaël Stelzhammer, who has worked at Action Sport since 1979 and been instrumental in key strategic developments."

Founded in 1971, Action Sport's motorcycle and bicycle products are marketed through four different operating entities: Royal Moto France Accessories, a distributor of motorcycle gear and accessories; Royal Vélo France, a distributor of bicycle gear and accessories; PXP, a distributor of motorcycle performance/tuning parts; and Royal Outdoor, a distributor of branded outdoor accessories such as Fox sportswear and footwear and Camelbak bags. Action Sport customers include motorcycle dealers, bicycle retailers, motorcycle accessories retailers and outdoor products retailers. The Company is headquartered in Troyes, France and employs approximately 100 people.

"European Capital is exactly the partner Action Sport needs as we move forward with our strategic growth initiatives," said Michaël Stelzhammer, Action Sport President and CEO. "With their financial support and the combined experience of their investment team, we can significantly expand our network of retailers in France, further strengthen our value-added services to our retailers and enhance our sourcing capabilities, all the while solidifying our position in the French motorcycle and bicycle gear and accessories market."

ABOUT EUROPEAN CAPITAL
European Capital is a buyout and mezzanine fund with capital resources of €750 million. European Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts and provides capital directly to private and mid-sized public companies. European Capital invests from €5 million to €125 million per transaction in equity, mezzanine debt and senior debt to fund growth, acquisitions and recapitalizations.

Companies interested in learning more about European Capital's flexible financing should contact Jean Eichenlaub at + 33 (0)1 40 68 06 66 in Paris, Simon Henderson at + 44 (0)207 539 7000 or Nathalie Faure Beaulieu at + 44 (0)207 539 7000 in London, or visit our website at www.EuropeanCapital.com.

ABOUT AMERICAN CAPITAL
American Capital Strategies Ltd. (Nasdaq: ACAS), an affiliate of European Capital, is a publicly traded buyout and mezzanine fund with capital resources of approximately $7 billion. American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, provides capital directly to 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.

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.