European Capital Opens Madrid Office

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

Contact:

Jean Eichenlaub, Managing Director, +33-(0)-1-40-68-06-66, Luis
Felipe Castellanos, Managing Director, +34-(91)-745-99-63, Brian
Maney, Director of Corporate Communications, +1-301-951-6122, all of
European Capital Financial Services Limited

European Capital Opens Madrid Office

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