European Capital Invests EUR 12 Million in Cegelec, Leading International Engineering Group

European Capital Invests EUR 12 Million in Cegelec, Leading International Engineering Group

May 16, 2006

    PARIS, May 15 /Xinhua-PRNewswire/ -- European Capital,
S.A. SICAR announced today it has invested EUR 12 million
($15 million) in the EUR 120 million mezzanine facility of
Cegelec, a leading international engineering group
providing electrical contracting services for industrial,
infrastructure and non-residential building projects. 
Senior and mezzanine facilities were arranged by The Royal
Bank of Scotland plc. and Calyon Corporate and Investment
Bank in support of LBO France's EUR 1.08 billion
acquisition of Cegelec. 

    "We are delighted to partner with LBO France, a
highly regarded European private equity firm, and support
their acquisition of Cegelec.  European Capital opened its
Paris office one year ago and our quickly growing
reputation in the European middle market has allowed us to
participate in attractive investment opportunities with
premier European equity partners and expand our investments
into a variety of industry sectors," said Ira Wagner,
President of European Capital Financial Services Limited,
("European Capital Services"), the sub-investment
manager of European Capital.  "Cegelec's excellent
diversification of revenues by end-markets, geography and
customers, and recurring revenues and stable cash flows,
make it a great addition to European Capital's expanding
and diversified portfolio of investments." 

    European Capital has invested EUR 498 million ($644
million) in 21 companies since its formation in August of
2005.  For more information about European Capital's
portfolio, go to
http://www.europeancapital.com/our_portfolio/our_portfolio.cfm
.  

    "We are looking forward to supporting the growth
of Cegelec, an international leader in technical electrical
contracting, backed by a committed and proven management
team," said Jean Eichenlaub, European Capital Managing
Director.  "Cegelec's leading market position is a
result of its strong reputation, expertise in niche
markets, expertise in large, highly technical industrial
and infrastructure projects, and widespread network, which
enables it to be close to its clients' sites.  These
attributes will serve the Company well in its future growth
plans." 

    Founded in 1913, Cegelec provides technical contracting
services, including electrical contracting, which covers
automation, instrumentation and control, electrical and
telecom installation and maintenance, and heating
ventilation and air-conditioning services.  Cegelec
operates in 30 countries and holds strong market shares in
France, Germany, Benelux and Morocco.  Cegelec has world
headquarters in Brussels and approximately 24,000 full time
employees.  

    ABOUT EUROPEAN CAPITAL

    European Capital is a buyout and mezzanine fund with
capital resources of EUR 1.1 billion ($1.3 billion). 
European Capital invests in and sponsors management and
employee buyouts, invests in private equity buyouts and
provides capital directly to private and mid-sized public
companies.  European Capital invests from EUR 5 million to
EUR 125 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 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 visit the website at
http://www.EuropeanCapital.com .  

    ABOUT AMERICAN CAPITAL

    American Capital Strategies Ltd. (Nasdaq: ACAS), an
affiliate of European Capital, is a publicly traded buyout
and mezzanine fund with capital resources of approximately
$7.7 billion. American Capital invests in and sponsors
management and employee buyouts, invests in private equity
buyouts, provides capital directly to early stage and
mature private and small public companies and through its
asset management business is a manager of debt and equity
investments in private companies.  American Capital
provides senior debt, mezzanine debt and equity to fund
growth, acquisitions, recapitalizations and
securitizations. American Capital invests up to $300
million per company.

    ABOUT LBO FRANCE 

    Established in 1985, Paris headquartered LBO France is
an independent private equity firm.  Since its inception,
the private equity firm has invested in more than 60
companies for a total cumulative enterprise value of EUR 10
billion.  LBO France has over EUR 1.5 billion under
management.  LBO France has completed some of the largest
buyouts in France including Actaris, a leading manufacturer
and designer of water, power and gas metering systems,
Nexity, a property development firm, and Terreal, a
manufacturer of clay tiles and bricks.  European Capital's
London office supported LBO France's November 2005
acquisition of Terreal.  

    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.  

    For more information, please contact:

     Jean Eichenlaub, 
     Managing Director, 
     European Capital Services
     Tel:   [phone]

     Brian Maney, 
     Director, Corporate Communications, 
     European Capital Services
     Tel:   [phone]

SOURCE  European Capital