FOR IMMEDIATE RELEASE:
26 September 2008

Contact:
Giles Cheek, Director, +44 (0)20 7539 7000
Ivan Stoyanov, Investment Director +44 (0)20 7539 7000
Jennifer Burke, Corporate Communications +1 301 951 6122

EUROPEAN CAPITAL REALISES 53% EQUITY RETURN FROM SALE OF PORTFOLIO COMPANY AVERY WEIGH-TRONIX

St. Peter Port, Guernsey – 26 September 2008 – European Capital Limited (LSE: ECAS) ("European Capital") announced today that it realised a 53% annual equity rate of return from the sale of its portfolio company Avery Weigh-Tronix Holdings Limited (“Avery”) to Illinois Tool Works Inc. (NYSE: ITW). The European Capital proceeds exceeded the second quarter 2008 valuation of its holding by €2 million, or 5%.

European Capital acquired Avery in July 2006 in a One Stop Buyout™, investing €123 million in a revolving credit facility, senior term debt, subordinated debt, loan equity, preference equity and common equity. In 2007, European Capital partially exited its investment in Avery from the sale of the company’s retail weighing business. For more information about European Capital’s investment in Avery, click here.

“We are pleased to announce the sale of Avery to ITW,” said Ira Wagner, President of European Capital Financial Services Limited. “The outstanding gain on the Avery investment is a testament to European Capital’s investment strategy carried out by our experienced investment teams. These teams have done an excellent job selecting attractive investments in 89 portfolio companies and then, through the use of the Operations Team, assisting the companies with a variety of improvements to enhance performance."

Since inception, European Capital has earned an 18% compounded annual return, including interest, dividends, fees and net gains, on 31 portfolio company realisations of senior debt, subordinated debt and equity investments, totaling €1.2 billion of committed capital. These realisations represent 36% of all amounts committed by European Capital since inception.

“We have been pleased to support the Avery business and its management, which has changed significantly during the period of our ownership to become a more focused and efficient company,” said Giles Cheek, Director of European Capital Financial Services. “We wish Avery’s management team and employees continued success in the future.”

“We are delighted with the results of our investment in Avery,” said Ivan Stoyanov, Investment Director of European Capital Financial Services. “Led by its energetic management the company has exceeded our original projections, having achieved significant operational improvements.”

“The Avery management team and employees look forward to the next phase of the company's development as part of ITW," said Jerry Bowe, Chairman of Avery. "With European Capital’s support we have significantly streamlined our business in the past couple of years, building a solid platform from which Avery will continue to grow."

Avery is based in Smethwick, UK with major operations and manufacturing facilities in the USA, Canada, Malaysia, India and China. Avery’s industrial products include weighbridges, platform or deck scales, load cells, indicators and supporting software that serve customers in a variety of end markets, including logistics and transportation, food processing, waste management, agriculture and general manufacturing. In addition, the company provides aftermarket support services for its weighing products through one of the industry’s largest accredited service networks. The company employs over 1,500 people worldwide.

ABOUT EUROPEAN CAPITAL

European Capital is a publicly traded investment company for pan-European equity, mezzanine and senior debt investments with current capital resources of approximately €2.4 billion ($3.5 billion). It is managed by European Capital Financial Services (Guernsey) Limited ("ECFSG"), a wholly-owned affiliate of American Capital, Ltd.

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 one stop financing of debt and equity 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 subordinated debt and equity financing directly to private and public companies, which is used for growth, acquisitions or recapitalizations, and investing in structured finance vehicles.

Companies interested in learning more about European Capital's flexible financing should contact 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 (Nasdaq: ACAS), with $20 billion in capital resources under management¹, is the only private equity fund and the largest alternative asset management company in the S&P 500. American Capital, both directly and through its global asset management business, originates, underwrites and manages investments in private equity, leveraged finance, real estate and structured products. 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. American Capital was founded in 1986 and currently has 13 offices in the U.S., Europe and Asia. For further information, please refer to www.AmericanCapital.com.

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.

¹As of 30 June 2008.