FOR IMMEDIATE RELEASE:
December 14, 2006

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

EUROPEAN CAPITAL INVESTS €106 MILLION IN ONE STOP BUYOUT™ OF
METALL TECHNOLOGIE HOLDING

Paris — December 14, 2006 — European Capital S.A. SICAR announced today it has invested €106 million ($141 million) in Metall Technologie Holding, a leading European manufacturer of high-end heat treatment industrial furnaces.  European Capital’s investment takes the form of senior term loans, a mezzanine loan, a shareholder loan and common equity.  European Capital is also providing a revolving credit facility and an acquisition line.  Metall Technologie’s management team is also investing in equity.  Post close, European Capital will own approximately 83% of Metall Technologie, on a fully diluted basis.

“Metall Technologie is European Capital’s sixth One Stop Buyout™ and the third completed by the Paris office,” said Ira Wagner, President of European Capital Financial Services Limited ("European Capital Services"), the sub-investment manager of European Capital.  “Our ability to provide the entire financing structure continues to be a competitive advantage in the buyout marketplace and our overall global knowledge will also be helpful in assisting in the future growth of Metall Technologie.  We have experienced a robust pace of activity in both buyout and mezzanine transactions in 2006 and we anticipate this pace continuing into 2007.”

European Capital has invested approximately €1.2 billion ($1.6 billion) in the last twelve months, €1.2 billion ($1.6 billion) year to date and €395 million ($524 million) quarter to date.  For more information about European Capital’s portfolio, click here. 

“With this One Stop Buyout™ we are investing in a growing company with steadily increasing market share and a large and expanding geographic footprint in Western and Eastern Europe, as well as Asia.  We are especially impressed with Metall Technologie’s lean business model, focused on high quality product design and final assembly,” said Jean Eichenlaub, European Capital Managing Director.  “Metall Technologie is led by a committed and ambitious management team with long-term experience in the heat treatment industry, as well as a successful history of executing strategic initiatives while operating in a leveraged buyout environment.”
 
“We believe that Metall Technologie’s solid position in the high-end market, management team and solid cash-flow generation make it an excellent investment,” said Etienne Haubold, European Capital Vice President.  “The Company’s reputation for quality and innovation, broad product offering, engineering and process knowledge, highly recognized brands, loyal customer base and end market diversification will benefit it greatly in the years ahead.”   

With main offices in France and Germany, and headquartered in Menden, Germany, Metall Technologie consists of four operating entities all trading under their own brand names: BMI in France and IVA, Mahler, and Schmetz in Germany.  Metall Technologie focuses exclusively on high-end furnaces requiring an advanced level of technology to meet strict specifications such as high temperatures, control accuracy and consistent heat application in all areas of the furnace chambers.  Industrial heat treatment furnaces are used by a broad range of industries to modify a material’s surface or physical characteristics in order to increase flexibility, wear-resistance or hardness.  Metall Technologie designs, assembles and markets furnaces and also performs after-market services to its installed base of approximately 3,500 units.  In addition to its four European subsidiaries’ facilities, the Company recently opened a production facility in China.  Its products are sold to blue-chip customers in more than 35 industries, including heat treatment service, automotive, aerospace, machinery and energy saving.

“We believe that with European Capital’s one stop financing package and guidance from its experienced professionals Metall Technologie can move forward with our growth plans to become the worldwide leader for high-end heat treatment furnaces,” said Stefan Blum, Metall Technologie co-CEO.  “We’re excited about our growth potential as we carry out our planned strategic initiatives, including further market penetration and production expansion in China.”

“We wanted an investment partner that would understand our vision and support our build-up growth strategy and that’s exactly what we found with European Capital,” said Luigi Dall’O, Metall Technologie co-CEO.  “We’re looking forward to a mutually rewarding relationship with our new investment partner.”

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 €400 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 Simon Henderson or Nathalie Faure Beaulieu at + 44 (0)20 7539 7000 in London, 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 $12 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.

 

This announcement is neither an offer to sell nor a solicitation to buy securities.
This announcement appears as a matter of record only.