FOR IMMEDIATE RELEASE:
November 3, 2006

Contact
Nathalie Faure Beaulieu, Managing Director, European Capital Services +44 (0)20 7539 7000
Brian Maney, Director, Corporate Communications +1 (301) 951-6122

EUROPEAN CAPITAL INVESTS €345 MILLION IN MEZZANINE TRANSACTIONS

St. Peter Port, Guernsey — November 3, 2006 — European Capital Limited and its wholly-owned subsidiary European Capital S.A. SICAR ("European Capital") announced today the investment of €345 million ($440 million) in 12 companies since March.  The investments were implemented by the Pan-European Mezzanine Team in the London office of European Capital Financial Services Limited ("European Capital Services"), the sub-investment manager of European Capital, and supported investments by private equity sponsors in middle market companies.  Private equity sponsors included The Blackstone Group International, Candover Partners Ltd., CapVest Equity Partners,  Cinven Limited, Investcorp, Legal & General Ventures, Lehman Brothers Merchant Banking Partners, Lion Capital, Vestar Capital Partners and WENDEL Investissement.

"European Capital has established a solid presence in the European  mezzanine market, especially among leading underwriting banks and top tier European private equity sponsors," said Ira Wagner, President of European Capital Services.  "European Capital has completed 26 investments in this year alone in a broad range of industries and expanded its geographical reach throughout Europe, including the U.K., Germany, France, Benelux, Sweden, Norway, Spain, Switzerland and Italy."

European Capital has invested approximately €1.1 billion ($1.4 billion) in the last twelve months, €1 billion ($1.3 billion) year to date and €224 million ($286 million) quarter to date.  For more information about European Capital’s portfolio, click here. 

"European Capital has had the opportunity to work with outstanding private equity sponsors and arrangers in the European market, completing attractive investments in leading European companies," said European Capital Services Managing Director Nathalie Faure Beaulieu.  "As we move forward, we hope to leverage the experience of our professionals and our large institutional capabilties to respond quickly to compelling investment opportunities in an exciting market."

European Capital’s London office has supported private equity sponsors in their buyouts, add-on acquisitions and recapitalizations of companies in the consumer and leisure, healthcare, business and financial services and industrials sectors.  Five of its twelve recent investments were in consumer and leisure related companies including: €34.5 million in UPC Norway, a Norwegian cable operator, to support Candover Partners Ltd’s acquisition; €35.5 million in Young’s Bluecrest Seafood Ltd., a European supplier and processor of fish and seafood, to support an add-on acquisition led by CapVest Equity Partners; €6 million in MW Brands Group, a producer of seafood, to support Lehman Brothers Merchant Banking Partners’ acquisition; €8 million in Orangina, a manufacturer and distributor of branded carbonated soft drinks, to support its recapitalization by Lion Capital and The Blackstone Group International; and €60 million in Numericable, a French cable television service provider, to support an add-on acquisition and its recapitalization by Cinven Limited. 

The office also completed four investments in the industrials sector, including: €18 million in Materis, a European manufacturer of specialty building materials, to support WENDEL Investissement’s acquisition; €29 million in Nybron Flooring International, a European manufacturer of wood flooring, to support Vestar Capital Partners acquisition; €25 million in Autodis SA, an independent distributor of auto parts in France, to support Investcorp’s acquisition; and €7 million in Deutsch Connectors, one of the top global manufacturers of high performance electronic connectors supplying the heavy vehicle, aerospace and defense and specialty markets, to support WENDEL Investissement’s acquisition. 

In addition, the office made two investments in the business and financial services sector and one in the healthcare sector.  Investments in the business and financial services sector included: €50 million in Amadeus Global Travel Distribution S.A., a worldwide provider of marketing and distribution services to the travel industry, to support Cinven Limited’s acquisition and an additional subsequent investment, and €59 million in DX Services plc and Secure Mail Services, two providers of mail delivery services, supporting Candover Partners’s acquisition of both companies.  European Capital’s investment in the healthcare sector was a €13 million investment in Integrated Dental Holdings, a provider of National Health Service dental services in the U.K., to support Legal & General Ventures’ acquisition.  

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 €200 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 Simon Henderson or Nathalie Faure Beaulieu at + 44 (0)20 7539 7000 in London, or Jean Eichenlaub at + 33 (0)1 40 68 06 66 in Paris, or visit the 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 $11.5 billion in capital resources under management.   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 from $5 million to $500 million per company.

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.