FOR IMMEDIATE RELEASE:
2 October 2007

Contact
Jean Eichenlaub, Managing Director +33 (0)1 40 68 06 66
Stéphane Legrand, Director +33 (0)1 40 68 06 66
Olivia Reveilliez, Manager +33 (0)1 40 68 06 66
Marie Bal, Communication Manager +33 (0)1 40 68 06 66

EUROPEAN CAPITAL INVESTS IN THE ONE STOP BUYOUT™ OF DEVGLASS, HOLDS 40% EQUITY STAKE

St. Peter Port, Guernsey – 2 October 2007 – European Capital S.A. SICAR, a wholly-owned subsidiary of European Capital Limited (LSE: ECAS), announced today that it has invested in the One Stop Buyout™ of DEVGLASS, the leading independent French manufacturer and distributor of dual-pane insulated glass for windows. The investment was led by the Paris office of European Capital Financial Services Limited (“European Capital Services”), the sub-investment manager of European Capital. The investment was made by European Capital S.A. SICAR and its subsidiary ECAS S.à.r.l, and takes the form of senior bonds, senior and junior mezzanine bonds, convertible bonds and common equity. European Capital holds 40% of the equity in DEVGLASS alongside Olivier Rambeau, DEVGLASS’ Chairman and CEO, who continues to hold a majority equity stake.

“We are pleased to be investing in DEVGLASS and partnering with an exceptional management team that has an impressive entrepreneurial track record,” said Jean Eichenlaub, Managing Director of European Capital Services. “European Capital will support DEVGLASS’ further development.”  

“Aided by the evolution of the regulatory framework and the development of government incentives aiming at reducing energy consumption, as well as the increasing demand from consumers, the market for insulated double-glass windows should keep experiencing sustainable growth,” said Stéphane Legrand, European Capital Services Director. “Led by a proven and committed management team, DEVGLASS commands a significant market edge, having been at the forefront of guaranteeing short lead times facilitated by its strategic plant locations, highly automated production process and efficient logistics chain.”

“DEVGLASS’ strict quality standards and responsiveness have earned it a broad and loyal customer base,“ said Olivia Reveilliez, European Capital Services Manager. “DEVGLASS has a clearly defined plan to further consolidate its leading market position through both the build-up of sales with existing clients and the recruitment of new customers.”

DEVGLASS produces insulated glass in a process that includes glass cutting, preparing spacers and assembling glass/pane spacers. DEVGLASS has four main product groups: standard double-glass; superior double-glass with improved heating and/or sound insulation; laminated safety and security double-glass panes; and newly-introduced triple-glass. Headquartered in Vendée, France, DEVGLASS has manufacturing plants in Saint-Laurent-sur-Sèvre, Vendée and in Alençon, Orne. DEVGLASS has nearly 300 employees and is expected to achieve more than €60 million of sales in 2007, equating to a 20% compound average growth rate over the past five years.

“We are delighted that European Capital is investing in DEVGLASS,” said Olivier Rambeau, DEVGLASS Founder, Chairman and CEO. “Its strong one stop financing package, flexibility and capacity in assisting us in developing the group provides invaluable support for our expansion plans.”

European Capital has invested over €1.7 billion ($2.4 billion) in the last twelve months, €1.4 billion ($1.9 billion) year to date and €425 million ($601 million) quarter to date.  For more information about European Capital’s portfolio, go to www.europeancapital.com/our_portfolio/portfolio_de.html

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), with $16 billion in assets under management¹, is an affiliate of European Capital and a member of the S&P 500. It is the largest U.S. publicly traded private equity firm 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 August 31, 2007 and does not include any fair value adjustments subsequent to June 30, 2007.

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.