FOR IMMEDIATE RELEASE:
18 March 2008

Contact
John Erickson, Director, European Capital Financial Services (Guernsey) Limited +1 (301) 951-6122
Tom McHale, Director, European Capital Financial Services Limited +1 (301) 951-6122

EUROPEAN CAPITAL DECLARES Q1 DIVIDEND OF €0.15 PER ORDINARY SHARE

St. Peter Port, Guernsey – 18 March 2008 – European Capital Limited (“European Capital”) (LSE: ECAS) announced today that its Board of Directors has declared a first quarter 2008 dividend of €0.15 per ordinary share payable on 25 April 2008 to record holders of its ordinary shares on the register as of 16:30 GMT on 28 March 2008.  This is a 7% increase over the fourth quarter 2007 dividend of €0.14 per share and equals the dividend forecast announced last month in European Capital’s fourth quarter 2007 earnings press release.  European Capital has paid or declared a total of €56 million in dividends since its May 2007 initial public offering (“IPO”).  The fourth quarter 2007 dividend of €0.14 per ordinary share equalled a 52% dividend payout ratio of the fourth quarter 2007 earnings less appreciation and depreciation (“Realised Earnings”).

2008 DIVIDEND GUIDANCE REITERATED
European Capital reiterates its forecast of total 2008 dividends of €0.62 per share, a 68% growth over post-IPO 2007 dividends of €0.37 per share in 2007.  The 2008 dividends per share are forecast to be in the following quarterly amounts:

€0.15 for Q2 2008, 50% increase over Q2 2007;
€0.16 for Q3 2008, 23% increase over Q3 2007; and
€0.16 for Q4 2008, 14% increase over Q4 2007.

For more information, please visit our website at www.EuropeanCapital.com or call our Investor Relations Department at +44 (0)20 7539 7100.

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 €2.8 billion ($4.4 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 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.

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.