FOR IMMEDIATE RELEASE:

September 21, 2006

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

European Capital Invests in Add-On Acquisiton for Portfolio Company Eau Ecarlate 

Paris – September 21, 2006 – European Capital S.A. SICAR announced today it has made an additional investment in its portfolio company Eau Ecarlate to support its acquisition of the Household Products Division of Guaber, a branded consumer products company in the Italian market.  The combined entity will operate as The Spotless Group.  Guaber’s senior management is investing in equity.  AXA Private Equity is the majority owner of Eau Ecarlate. 

“We are pleased to be partnering with AXA Private Equity for the second time and supporting the growth of our portfolio company Eau Ecarlate,” said Ira Wagner, President of European Capital Financial Services Limited, ("European Capital Services"), the sub-investment manager of European Capital.

“Eau Ecarlate, the clear category leader in the linen care products in France, and Guaber, the leader in branded fabric care, household cleaning and insecticides in Italy, are an excellent match,” said Jean Eichenlaub, European Capital Managing Director.  “This strategic acquisition provides Eau Ecarlate with a strong portfolio of well-known Italian household brands, which will increase and diversify its current product portfolio as well as broaden its geographic reach through Guaber’s extensive international distribution network.” 

“Guaber’s strong financial performance and leading brand names make it an excellent addition to the household products platform that AXA Private Equity is developing,” said Stéphane Legrand, European Capital Director.  “We are excited to play a part in helping create this larger pan-European household products company, which will have leading market positions in niche household market segments across Europe.”     

Headquartered in Bologna, Italy and founded in 1961, Guaber’s Household Products Division manufactures and supplies branded fabric care, household cleaning, insecticides and other home and garden products for the Italian household products market.  Guaber’s products include insect, pest and rodent sprays, baits, traps and repellants; linen care products such as laundry protection sheets, textile dyes and additives and stain removers; surface cleaners; and household deodorants, such as aerosol sprays, pumps, self-adhesive disk deodorizers, liquid fragrances and air fresheners.  Guaber’s well-recognized brands include Grey, L’Acchiappacolore, L’Acchiappagrigio, Vim Clorex, VAPE, Coloreria, Drago, Fito and Deo. 

European Capital originally invested in Eau Ecarlate in November 2005, supporting AXA Private Equity's buyout.  Eau Ecarlate is the leading supplier of branded fabric care products to the French retail market.  The Eau Ecarlate brand was established more than 150 years ago and is widely recognized as the leading laundry aid brand in France.  The Company's products include Eau Ecarlate linen care products, Vigor surface cleaners, Vu eye glasses cleaner, Javel Dose bleach products, Allume Vite fire lighters, and Septifos toilette and septic system cleaner, all highly recognized brands.  Eau Ecarlate sells to every major supermarket and hypermarket in France.

For more information about European Capital’s original investment in Eau Ecarlate, click here.

ABOUT EUROPEAN CAPITAL

European Capital is a buyout and mezzanine fund with capital resources of €1.7 billion ($2.2 billion).   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 generally 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 or Nathalie Faure Beaulieu or Simon Henderson at + 44 (0)20 7539 7000 in London, or visit the website at www.EuropeanCapital.com. -- TemplateEndEditable -->

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 $8.9 billion.   American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, provides capital directly to early stage and mature 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.   American Capital invests up to $400 million per company.

ABOUT AXA PRIVATE EQUITY

AXA Private Equity, an AXA Investment Managers company with offices in Paris, Frankfurt, London, New York and Singapore, participates in private equity activities including Leveraged Buy Outs, Expansion, Venture, Co-investment, Mezzanine, Primary, Early Secondary and Secondary Funds of Funds. AXA Private Equity manages and/or advises Private Equity funds with assets in excess of €8.5 billion.

This press release contains forward-looking statements. The statements regarding expected results of European Capital and/or 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 European Capital and/or 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.