MADRID, Spain, July 9 /PRNewswire/ --

European Capital Financial Services Limited ("European Capital")
announced today the opening of its Madrid office, which will be in operation
pending the approval of the Financial Services Authority (FSA) and La
Comision Nacional del Mercado de Valores (CNMV). The office will concentrate
on mezzanine investments, while also providing flexible financing for the
Spanish market. Leading European Capital in Madrid is Luis Felipe
Castellanos, Managing Director. The Madrid office is the fourth European
Capital office, in addition to London, Paris and Frankfurt. The Frankfurt
office was recently opened in April 2007. The four offices combined have
approximately 90 employees.

European Capital Financial Services Limited is the sub-investment manager
of European Capital Limited (LSE: ECAS). European Capital is an affiliate of
American Capital Strategies Ltd. (Nasdaq: ACAS), a member of the S&P 500 and
largest U.S. publicly traded private equity firm and one of the largest
publicly traded alternative asset managers.

"We are delighted that Luis Felipe Castellanos is joining European
Capital at such an exciting time. European Capital has established a strong
base in Europe and the opening of the Madrid office is the next step in
expanding our presence in the European marketplace," said Ira Wagner,
President of European Capital and Chief Operating Officer of American Capital
Strategies Ltd. "We are excited with the many opportunities in Spain and
Portugal. Luis Felipe's extensive investment experience in this region makes
him a valued addition to European Capital as we continue to expand our
investment horizons."

"European Capital offers extensive competitive advantages to private
equity firms seeking financing for buyouts," continued Wagner. "With euro 2.1
billion of capital resources we can invest euro 5 million to euro 500
million, as a public company we can provide one stop financing, with
permanent capital we can be a patient partner, with 37 investment
professionals we can speed to a closing, with 11 audit professionals we can
help private equity firms avoid mistakes, with 12 offices worldwide we can
provide local service and with our global operations we can fund in U.S.
dollars, Euros, Sterling or Canadian dollars."

European Capital Limited has invested an aggregate of euro 2.3 billion in
58 companies since its establishment in August 2005, of which euro 968
million was invested in 27 companies in the first and second quarters of
2007. Euro 707 million was invested in 14 companies in the second quarter of
2007. European Capital Limited investments in Spain total euro 55 million
(based on portfolio company headquarter locations), including Amadeus Global
Travel Distribution S.A., a worldwide provider of marketing and distribution
services to the travel industry and Telepizza, an Iberian market leader in
the pizza delivery and take-away sector.

European Capital Limited has investments in the U.K., Germany, France,
Luxembourg, the Netherlands, Sweden, Norway, Spain, Switzerland and Italy.
Mezzanine investments have been in consumer and leisure, healthcare, business
and financial services and the industrials sector. For more information about
European Capital's portfolio, go to www.ECAS.com/our_portfolio/portfolio.html

"Luis Felipe brings to European Capital a profound knowledge of the
leveraged finance market in Spain and Portugal. We believe that Luis Felipe
and the team he develops will be a great contributor in expanding European
Capital's mezzanine business," said Jean Eichenlaub, Managing Director,
European Capital.

The 34 private equity sponsors with which European Capital Limited has
worked include: 3i, 21 Centrale Partners, ABN AMRO Capital France, Apax
Partners, Argan Capital, Astorg Partners, AXA Private Equity, Bain Capital,
Barclays Private Equity, BC Partners, The Blackstone Group International,
Candover Partners, CapVest Equity Partners, Charterhouse Capital Partners,
Cinven, Doughty Hanson & Co., Duke Street Capital, Electra Partners Europe,
Financiere Agache Private Equity, Investcorp International, Kohlberg Kravis
Roberts & Co., LBO France, Legal & General Ventures, Lehman Brothers Merchant
Banking, Lion Capital, Nordic Capital, Permira, Vestar Capital Partners,
Weinberg Capital Partners, and WENDEL Investissement.

"I am excited to be joining the European Capital organization," said Mr.
Castellanos. "The firm's low-cost capital, its ability to arrange and
participate in subordinated debt financing, including mezzanine, PIK and
second lien and its impressive institutional resources produce a great
variety of high quality investment opportunities. I look forward to assisting
in building this innovative and powerful franchise in Europe."

Mr. Castellanos was Managing Director and Head of Leveraged Finance of
Spain and Portugal at BNP Paribas in Madrid. At BNP Paribas, he managed LBOs,
MBOs, recapitalizations and refinancings, among other types of transactions.
While at BNP Paribas, Luis Felipe also held other positions, including Head
of Energy, Commodities, Export & Project Finance for Spain and Portugal and
Director of the Project Finance & Utilities Group first in Paris and then in
New York. Mr. Castellanos began his career at ACS-Dragados in Madrid, working
in the M&A Group. He holds a degree in economics from the Universidad
Autonoma in Madrid.

ABOUT EUROPEAN CAPITAL

European Capital Limited is a closed-end investment company for
pan-European equity, mezzanine and senior debt investments with capital
resources of approximately euro 2.1 billion (US$2.9 billion). European 
Capital Limited 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 
Limited generally invests between euro 5 million and euro 500 million per 
transaction in equity, mezzanine debt and senior debt to fund growth, 
acquisitions and recapitalizations.

Companies interested in learning more about European Capital's flexible
financing should contact Luis Felipe Castellanos at +34-(91)-745-99-63 in
Madrid, Jean Eichenlaub at +33-(0)-1-40-68-06-66 in Paris, or Nathalie Faure
Beaulieu or Simon Henderson at +44-(0)-20-7539-7000 in London, or Robert von
Finckenstein at +49-(0)-69-71-71-297-0 in Frankfurt, or visit the website at
www.EuropeanCapital.com.

ABOUT AMERICAN CAPITAL

American Capital Strategies Ltd. (Nasdaq: ACAS), a member of the S&P 500
with US$15 billion in assets under management, 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 US$5 million to US$800 million per 
company in North America and euro 5 million to euro 500 million per company 
in Europe.

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.

Web site: http://www.EuropeanCapital.com
              http://www.americancapital.com
              http://www.ECAS.com/our_portfolio/portfolio.html