FOR IMMEDIATE RELEASE:
12 September 2007

Contact
Jean Eichenlaub, Managing Director, European Capital Services +33 (0)1 40 68 06 66
Tristan Parisot, Director, European Capital Services +33 (0)1 40 68 06 66
Marie Bal, Communication Manager, European Capital Services +33 (0)1 40 68 06 66

EUROPEAN CAPITAL INVESTS €29 MILLION IN BUYOUT OF SOFLOG-TÉLIS

St. Peter Port, Guernsey – 12 September 2007 – European Capital S.A. SICAR, a wholly-owned subsidiary of European Capital Limited (LSE: ECAS) (“European Capital”) announced today that it, together with ECAS S.a.r.l. and ECAS II S.a.r.l., has invested €29 million in the buyout of Soflog-Télis, a leading provider of logistics services to major industrial customers in France. The investment was led by the Paris office of European Capital Financial Services Limited (“European Capital Services”), the sub-investment manager of European Capital, and takes the form of equity and senior and junior mezzanine debt. Following the investment, European Capital and the Soflog-Télis’ management team led by Bruno de Chaisemartin, former Chairman, are the majority shareholders of Soflog-Télis with a combined 55% ownership. 3i maintains its current 45% stake in Soflog-Télis.  

“We are very proud to support Soflog-Télis. The Company has successfully  implemented a unique  business model in the  industrial logistics sector in France and has a large offering of business services for the industrial supply chain,” said Jean Eichenlaub, Managing Director of European Capital Services.

“Bruno de Chaisemartin is a highly successful manager with a deep knowledge of the logistics outsourcing sectors. Soflog-Télis’ attractive business model is centered on its operational flexibility and national network, which provides effective and rapid response to industrial demand fluctuations as companies are increasingly willing to outsource their industrial logistics,” said Tristan Parisot, Director of European Capital Services. “This majority buyout alongside Soflog-Télis CEO Bruno de Chaisemartin and his management team will enable Soflog-Télis to remain independent while providing the group the resources to pursue its growth strategy.”  

Founded in 1952, Soflog-Télis is the leading provider of outsourced industrial logistics to over 2,100 customers, among them many blue chip industrial companies operating within a diversity of end-markets, including aerospace, naval, energy, telecom, medical, automotive and transportation. Soflog-Télis provides a comprehensive range of logistics services which allow customers to focus on their core-business while outsourcing and lowering logistics costs. The Company’s services include upstream operations, production line operations and downstream operations. Soflog grew at approximately 10% annually between 2003 and 2006 when it acquired Groupe Télis, another fast-growing supplier of logistics services. This build-up doubled the size of the group which now reaches €158 million revenues. Soflog-Télis is based in Asnières, near Paris, and has 52 leased sites nationwide, 6 sites situated within client facilities, and more than 1,800 employees.   

“European Capital stands out with its flexibility, speed and dedication to working closely with management teams,” said Bruno de Chaisemartin, new CEO of Soflog-Télis. “The Company has enjoyed a solid organic growth over the last 5 years and I am very excited to pursue this adventure with the existing team. The growth potential of Soflog-Télis is strongly supported by the outsourcing trend in France and its ability to provide quality, customized logistics solutions at a local level is a significant advantage.”

“Soflog-Télis now aims to extend its offer of services to its industrial customers by offering new added-value services, such as specific packaging, outsourced control, and reverse logistics offer,” continued Mr. de Chaisemartin. “Soflog-Télis offers its customers innovative and customized solutions with high level quality and closed follow-up. This strategy will enable the group to increase its presence in aerospace, medical, energy and railway sectors.”

ABOUT EUROPEAN CAPITAL

European Capital is a publicly traded company for pan-European equity, mezzanine and senior debt investments with capital resources of approximately €2.3 billion ($3.2 billion). 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 €15 million and €500 million per transaction in equity, mezzanine debt and senior debt to fund growth, acquisitions and recapitalizations.

European Capital has invested over €1.7 billion ($ 2.3 billion) in the last twelve months, €1.3 billion ($ 1.7 billion) year to date and €304 million ($ 419 million) quarter to date.  For more information about European Capital’s portfolio, click here.

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 $17 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.