FOR IMMEDIATE RELEASE:
29 August 2007

Contact
Tom McHale, Senior Vice President, Finance, American Capital +1 (301) 951-6122
John Hooker, Vice President, Debt Capital Markets, American Capital +1 (301) 951-6122

EUROPEAN CAPITAL OBTAINS €150 MILLION UNSECURED CREDIT FACILITY

St. Peter Port, Guernsey – 29 August 2007 – European Capital Limited (“European Capital”) (LSE: ECAS) announced today that European Capital S.A. SICAR, a wholly-owned subsidiary of European Capital, has obtained an unsecured, multi-currency, revolving credit facility with an aggregate commitment of €150 million. The facility amount may be expanded through new or additional commitments up to €400 million in accordance with the terms and conditions set forth in the credit agreement.  The Royal Bank of Scotland plc is the Agent, Mandated Lead Arranger, Bookrunner and a Lender under the facility.  Bank of Montreal Ireland p.l.c. is a Mandated Lead Arranger and Lender.  HSBC Bank USA, N.A. is Lead Arranger and Lender.  Interest on borrowings under the facility is currently charged at the applicable index rate plus 1.50%.

“European Capital has raised €1.16 billion of debt capital in the past two years,” said Tom McHale, Senior Vice President, Finance, American Capital.  “Our access to capital is a distinct competitive advantage, especially in the current environment.  It is also an ongoing affirmation of the business model, the outstanding quality of the European Capital team and the portfolio.”

"We are pleased to have built such a solid capital structure at European Capital,” said John Hooker, American Capital Vice President, Debt Capital Markets.  “We believe that we have taken a balanced approach to raising debt capital by utilizing a mix of longer term financings, lower cost secured financings, and ready sources of liquidity.  We have been able to accomplish this through one of the most difficult periods in the credit markets."

European Capital had the following debt capacity as of 29 August 2007:

ABOUT EUROPEAN CAPITAL

European Capital is a publicly traded investment company for pan-European equity, mezzanine and senior debt investments, with capital resources of approximately €2.3 billion ($3.2 billion). It is managed by European Capital Financial Services (Guernsey) Limited (“ECFSG” or “the Investment Manager”), a wholly-owned affiliate of American Capital Strategies, Ltd. (“American Capital”).

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 predominantly in Europe.  European Capital generally invests between €5 million and €500 million per transaction in equity, mezzanine debt and senior debt to fund growth, acquisitions and recapitalizations.

The investment objective of European Capital is to provide investors with dividend income and the potential for share value appreciation by investing in debt and equity investments in private and public companies headquartered primarily in Europe.

European Capital seeks to achieve this through pursuing the following types of investments:

European Capital One Stop Buyouts™
Through our One Stop Buyouts™, European Capital provides equity, mezzanine debt and senior debt as the lead investor in the buyout of private and public companies.

Mezzanine Direct with Sponsors
European Capital provides debt and equity financing for buyouts sponsored by private equity firms where European Capital is either the sole or lead mezzanine debt investor.

Syndicated Mezzanine and Senior Debt
European Capital provides mezzanine and senior financing for buyouts sponsored by private equity firms where European Capital is neither the sole nor lead mezzanine or senior debt investor.

Direct Investments
European Capital provides debt and equity financing directly to private and public companies, which is used for growth, acquisitions or recapitalisations, and investing in structured finance vehicles.

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, Jean Eichenlaub at + 33 (0)1 40 68 06 66 in Paris, Robert von Finckenstein at +49 (0) 69 71 71 297-0 in Frankfurt, or Luis Felipe Castellanos at +(34) 91 745 99 63 in Madrid, or visit the website at www.EuropeanCapital.com.

ABOUT AMERICAN CAPITAL

American Capital Strategies Ltd. (Nasdaq: ACAS) is an affiliate of European Capital and the only alternative asset management company that is a member of the S&P 500.  With $16 billion in assets under management¹, American Capital is the largest U.S. publicly traded private equity fund and one of the largest publicly traded alternative asset managers.  American Capital, both directly and through its global asset management business, is an investor in management and employee buyouts, private equity buyouts, and early stage and mature private and public companies.  American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations.  American Capital and its affiliates invest from $5 million to $800 million per company in North America and €5 million to €500 million per company in Europe.

¹ Assets under management is an estimate of internally and externally managed assets as of July 31, 2007 and does not include any fair value adjustments subsequent to June 30, 2007.

This announcement includes statements that are, or may be deemed to be,”forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms ”believes”, “estimates”, ”plans”, ”projects”, ”anticipates”, ”expects”, “intends”,” may”, “will”, or “should” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include matters that are not historical facts and include statements regarding European Capital's intentions, beliefs or current expectations concerning, among other things, European Capital's results of operations, financial condition, liquidity, prospects, growth and strategies.

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. A number of factors could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements.

Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements in this announcement reflect European Capital's view with respect to future events as at the date of this announcement and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to European Capital's operations, results of operations, growth strategy and liquidity. European Capital undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement.

Information in this announcement or any of the documents cannot be relied upon as a guide to future performance.