BETHESDA, Md., March 29 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. announced today that it and an affiliate have invested $160 million in Geosign Group Holdings and Geosign Corporation (collectively "Geosign"), an Internet publishing company. American Capital's investment takes the form of preferred equity and convertible debt. American Capital Equity Fund I LLC ("ACE"), a fund managed by American Capital, provided 30% of the American Capital equity investment. Proceeds from the investment will be used for working capital and to support Geosign's strategic growth initiatives.

"This is an excellent investment for our Technology Group as it leverages existing investments and broadens the scope of its portfolio," said Gordon O'Brien, American Capital Managing Director. "American Capital brings unique value to this partnership with our deep knowledge of the industry and our ability to help grow the business."

American Capital has invested directly and through its funds under management $7.2 billion in the last twelve months and approximately $1.3 billion in 2007 year to date. Not including funds under management, American Capital has invested $5.6 billion in the last twelve months and approximately $1 billion in 2007 year to date. For more information about American Capital's portfolio, go to http://www.americancapital.com/our_portfolio/our_portfolio.html

"Geosign is ideally positioned for continued expansion as the Internet claims an ever greater share of consumers' time and advertisers respond by steadily increasing their spending on the Internet," said Virginia M. Turezyn, American Capital Managing Director, Technology Group. "Geosign has built a first class Internet technology platform, from which it can continue to build on its position as an Internet media and marketing leader. In addition, Geosign has a talented and entrepreneurial management team that has demonstrated an outstanding ability to respond and adapt to a fast changing market."

"Geosign has demonstrated the capability of building a substantial consumer oriented presence on the Internet in an ecosystem that continues to evolve rapidly," said Miles Arnone, American Capital Managing Director, Technology Group. "The Company plans continued growth through international expansion and a rollout of additional functionality and content."

Founded in 2000, Geosign is a privately-held Internet media leader focused on online publishing and targeted search. With hundreds of websites in 20 categories, Geosign attracts over 35 million unique visitors to its network of sites on a monthly basis. The Company has offices in Guelph, Ontario, Canada and Barbados.

"We are delighted that American Capital is investing in Geosign to support its continued growth," said Ted Hastings, President of Geosign. "American Capital stands out with its ability to be a long term financial partner. In addition, American Capital Technology Group's knowledge of and experience with Internet companies make it an invaluable resource as we acquire and develop partnerships with a larger universe of web companies."

ABOUT AMERICAN CAPITAL TECHNOLOGY

The American Capital Technology Group invests in early, middle and late stage technology companies. With the flexibility to invest senior debt, subordinated debt and equity from $5 million to $800 million, the American Capital Technology Group can provide its capital base and domain expertise to build category-leading, technology companies.

American Capital and its affiliate American Capital Equity Fund I LLC have approximately $2 billion in technology investments in their existing portfolio. These companies generally are mature, high performing, cash flowing companies with excellent growth rates. They operate across many industry sectors and are driven by a broad range of technologies. The Technology Group extends American Capital's existing technology investment business by investing in earlier stage technology companies.

ABOUT AMERICAN CAPITAL

American Capital is the second largest U.S. publicly traded alternative asset manager with approximately $11 billion in assets under management (second to Fortress). 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 400 million per company in Europe.

As of February 28, 2007, American Capital shareholders have enjoyed a total return of 594% since the Company's IPO -- an annualized return of 23%, assuming reinvestment of dividends. American Capital has paid a total of $1.4 billion in dividends and paid or declared $23.33 in 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 http://www.americancapital.com/ or http://www.europeancapital.com/.

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 Strategies 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.

CONTACT: Virginia M. Turezyn, Managing Director, Technology Group,
+1-650-289-4561, or Miles Arnone, Managing Director, Technology Group,
+1-650-289-4560, or Brian Maney, Director, Corporate Communications,
+1-301-951-6122, all of American Capital Strategies Ltd.

Web site: http://www.americancapital.com/