FOR IMMEDIATE RELEASE:
18 February 2008

Contact
Tom McHale, Dir., European Capital Financial Services Limited +1 (301) 951-6122
Juan Carlos Morales Cortes, Finance Director, European Capital Financial Services +44 (0)207 539 7000
John Hooker, Vice President, Debt Capital Markets, American Capital +1 (301) 951-6122
Justin Cressall, Equity Capital Markets, European Capital Financial Services Limited: +1 (301) 951-6122

EUROPEAN CAPITAL INCREASES CAPITAL RESOURCES TO €2.5 BILLION; ANNOUNCES ISSUANCE OF €267 MILLION OF AAA-RATED INVESTMENT GRADE NOTES

St. Peter Port, Guernsey – 18 February 2008 – European Capital Limited (“European Capital”) (LSE: ECAS) announced today that ECAS 2007-1 Loan BV (“ECAS 2007-1 BV”), an entity consolidated by European Capital, has issued €267 million of AAA-rated secured floating rate notes, backed by €457 million in loans originated by European Capital subsidiaries.  The notes were rated by Standard & Poors.  Affiliates of Deutsche Bank AG acted as the arranger and underwriter.  The addition of the €267 million secured floating rate notes increases European Capital’s capital resources to €2.5 billion.    

European Capital has the following committed debt facilities:

* US Dollar facilities converted to Euros at 31 January 2008 exchange rate.

“We are happy to have been able to arrange this financing in the current market, bringing European Capital’s capital resources to €2.5 billion.  The securitisation provides European Capital with additional capital, a major competitive advantage especially at a time when European Capital can capitalize on the widening spreads in the leveraged loan market,” said John Hooker, Vice President, Debt Capital Markets, American Capital. “This securitisation also makes a very positive statement about the quality of European Capital’s assets. Particularly in this environment, Deutsche Bank AG and the rating agency were very focused on credit quality and underwrote every asset in the pool.”

“As banks pull back lending, the number and quality of investment opportunities for European Capital are expected to increase,” said Tom McHale, Director, European Capital Financial Services Limited.  “In particular, our One Stop Buyouts™ have become even more important to sellers of companies in this uncertain financing environment.  Furthermore, our ability to underwrite mezzanine tranches is in demand from other private equity sponsors, especially because we can provide certainty of close.  We are now in an even greater position to meet the financing needs of middle market companies.”

European Capital has invested approximately €2.9 billion in 79 companies since its formation in August of 2005 and approximately €1.6 billion in 49 companies in 2007.  For more information about European Capital's portfolio, click here.

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 €2.5 billion ($3.7 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 recapitalisations.

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) 91 423 27 60 in Madrid, or visit the website at www.EuropeanCapital.com.

ABOUT AMERICAN CAPITAL

American Capital Strategies Ltd. (Nasdaq: ACAS), with $19 billion in capital resources under management, 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, recapitalisations and securitisations. 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.

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.