American Capital Provides One Stop Financing to Support Audax Group's Acquisition of Cinelease

American Capital Provides One Stop Financing to Support Audax Group's Acquisition of Cinelease

BETHESDA, Md., Sept. 13 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. (NASDAQ:ACAS) announced today that it and an affiliate provided financing for Audax Group's investment in Cinelease Inc., a supplier of lighting and grip equipment to the television, feature film, commercial, music video, and event industries. American Capital's one stop leverage financing package takes the form of a revolving credit facility and a unirate term loan. In addition, American Capital invested a minority position in the common equity of Cinelease. American Capital Equity Fund I LLC ("ACE"), a fund managed by American Capital, provided 30% of the American Capital equity investment.

"This is our third platform transaction with Audax, a firm that has proven to be a strong financial partner with a track record of sound investments," said Brian Graff, American Capital Regional Managing Director. "Cinelease has been renting lighting and grip equipment to hundreds of entertainment and commercial production companies for nearly 30 years and is a welcomed addition to our well-rounded portfolio."

American Capital has invested directly and through its funds under management $11.3 billion in the last twelve months, $8.1 billion year to date and $1.8 billion quarter to date. Not including funds under management, American Capital has invested $8.7 billion in the last twelve months, $6.0 billion year to date and $1.4 billion quarter to date. For more information about American Capital's portfolio, go to http://www.acas.com/our_portfolio/our_portfolio.html.

"Cinelease has earned a reputation in the field for carrying the broadest inventories and the best-maintained equipment and for having the highest level of customer service and dependability. The Company has developed deep relationships with more than 150 clients across the entertainment and event industries," said Kenneth Jones, American Capital Principal, Sponsor Finance Group. "Cinelease is a leader in a non-cyclical industry where regular production schedules provide stable and predictable cash flows. The demand for television entertainment has been growing over the last five years."

Founded in 1977, Cinelease rents high-quality lighting and grip equipment to the television, feature film, commercial, music video and event industries. Grip equipment is any item used in altering, influencing, holding or affecting lighting. Based in Burbank, CA, with a facility in Las Vegas, NV; Shereveport, LA; and Charlotte, NC, Cinelease is a leading lighting and grip equipment rental company in Southern California and one of the largest in the world. Since 2005, the Company has been rapidly expanding its Theatrical Event Lighting division.

ABOUT AMERICAN CAPITAL

American Capital is the only alternative asset management company that is a member of the S&P 500. With $17 billion in assets under management(1), American Capital 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 euro 5 million to euro 500 million per company in Europe.

As of August 31, 2007, American Capital shareholders have enjoyed a total return of 558% since the Company's IPO -- an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $1.7 billion in dividends and paid or declared $25.16 dividends per share since going public in August 1997 at $15 per share.

Companies interested in learning more about American Capital's flexible financing should contact Mark Opel, Senior Vice President, Business Development, at (800) 248-9340, or visit www.AmericanCapital.com or www.EuropeanCapital.com.

(1) Assets Under Management is an estimate of internally and externally
managed assets as of July 31, 2007 and does not include any fair value
adjustments subsequent to June 30, 2007.

ABOUT AUDAX GROUP

Audax Group, founded in 1999, is a leading investor in middle market companies. With offices in Boston and New York, Audax manages in excess of $3.7 billion of equity, mezzanine debt, and senior loan capital. In addition to Cinelease, American Capital supported Audax Group's May 2006 acquisition of CIBT Holdings, a leading expeditor of short-term visas, passports and other documents for business and leisure travel. American Capital also supported Audax Group's July 2004 acquisition of Dynisco LLC, a leading global designer and manufacturer of precision instruments and software for the plastic and rubber processing industry.

Performance data quoted above represents past performance of American Capital. Past performance does not guarantee future results and the investment return and principal value of an investment in American Capital will likely fluctuate. Consequently, an investor's shares, when sold, may be worth more or less than their original cost. Additionally, American Capital's current performance may be lower or higher than the performance data quoted above.

This press release contains forward-looking statements. The statements regarding expected results of 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 American Capital has made investments.

First Call Analyst:
FCMN Contact: Erika.Foster@AmericanCapital.com

Source: American Capital Strategies Ltd.

CONTACT: Kenneth Jones, Principal, Sponsor Finance Group,
+1-610-238-0210; Brian Maney, Director, Corporate Communications,
+1-301-951-6122, both of American Capital Strategies Ltd.

Web site:

http://www.americancapital.com/

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