unquoted pastures

"We are pleased to be working with both
distinguished sponsors and arrangers, and look forward to developing a broad
range of relationships within the industry. American Capital invests in and sponsors
management and employee buyouts, invests in private equity buyouts, provides
capital directly to private and small public companies and through its asset
management business is a manager of debt and equity investments in private
companies.

Kodiak Venture Partners Appoints Penny Breen as Vice President of Finance and Murray Berkowitz to Technology Partner

"
Breen brings more than 20 years of financial and entrepreneurial
experience to Kodiak.kodiakvp.

jumpstart buyouts

capitalize recapitalizations

Business Editors

WALTHAM, Mass.

pastures rounds

----

-Former Financial Consultant Brings Venture Capital-Specific
Fiscal Expertise to Bear for Kodiak -

Kodiak Venture Partners, a seed and early stage venture capital
firm focusing on communications/IT, semiconductor and software
companies, today announced the addition of Penny Breen as Vice
President of Finance.

blumberg jumpstart

"It's Penny's unique combination of a
strong financial services background and operational disciplines that
will benefit Kodiak, and our limited partners. There , she was responsible for
trading, trading relationships, finance, operations, and compliance.

revenues geographies

European Capital Invests Euro 148 Million in Buyout and Mezzanine Transactions

"
Murray Berkowitz, who joined Kodiak in September 2004 as
Entrepreneur-in-Residence, has been appointed Technology Partner .

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lovett recapitalizations

"The start up of European
Capital has proceeded better than we had anticipated.

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Six of these
companies are majority owned by private equity sponsors."
"Our Mezzanine division is off to a strong start ," said Nathalie Faure
Beaulieu, Managing Director. "Kodiak has also been
successful in applying its investment principles internally, and has
built a knowledgeable and successful operations team .

xytex lovett

American Capital provides senior debt, mezzanine debt and equity to
fund growth, acquisitions and recapitalizations.
"Penny's breadth of experience makes her an asset to our dynamic
firm," said Mike Schiavo, General Partner and Chief Financial Officer
for Kodiak Venture Partners.
"Kodiak 's ability to leverage its operational expertise in its
portfolio companies is remarkable, and has brought clear benefits to
Kodiak and its investments," said Penny Breen.

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"

ABOUT EUROPEAN CAPITAL
European Capital is a buyout and mezzanine fund with capital resources of
euro 750 million.
Companies interested in learning more about European Capital's flexible
financing should contact one of the following European Capital Services
Managing Directors: Nathalie Faure Beaulieu at + 44 20 7539 7020 in London,
Simon Henderson at + 44 -20 7539 7042 in London, or Jean Eichenlaub at + 33
(0)1 40 68 06 66 in Paris, or visit our website at
http://www.

ABOUT AMERICAN CAPITAL
American Capital Strategies Ltd. I look forward
to contributing to such a well run firm.S.

tradable xytex

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 . Kodiak's investment partners are successful high-technology
business entrepreneurs who take a high -impact, hands-on approach to
forming, operating, building and funding market leaders.

buyouts venglobal

entrepreneurial lovett

This press release contains forward-looking statements. In this role, Breen will manage finance and
administrative functions for the firm, including financial reporting,
human resources, and office management. In his
new position, Berkowitz will continue to focus on developing new
software investment opportunities, and provide business strategy and
technical guidance for portfolio companies. For more
information, visit www.

lovett rounds

Five of the investments, totaling euro 84 million ($98 million ), were
implemented by the London office of European Capital Financial Services
Limited ("European Capital Services"), the sub-manager of European Capital.

vcfirm fulcrum

This
change signifies the development of Berkowitz's role at Kodiak.

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"We are very pleased to note that since August, the London office has
arranged five mezzanine investments and the Paris office has arranged a buyout
and mezzanine investment, an excellent beginning to European Capital," said
European Capital Services President Ira Wagner. 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. Prior to joining the firm, Breen served as a
finance consultant at Globespan Capital Partners, a venture capital
firm focused on information technology investments, where she was
responsible for working on various high-level financial and legal
projects . With a focus
in the eastern regions of the U.

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LUXEMBOURG, European Capital Limited and
its wholly owned subsidiary European Capital, S.

diversify entrepreneurial

SICAR ("European Capital")
announced today it has invested approximately euro 148 million ($173 million)
in seven companies since its formation in August of this year. The market is receptive
to our mezzanine capabilities and our One-Stop Buyouts(TM), our excellent
European team is working hard and we anticipate significant new investments by
European Capital in the months and years ahead.

unquoted pastures

(Nasdaq: ACAS), an affiliate of European
Capital, is a publicly traded buyout and mezzanine fund with capital resources
of approximately $7 billion.

mezzanine wwg

European Capital invests
from euro 5 million to euro 125 million per transaction in equity, mezzanine
debt and senior debt to fund growth, acquisitions and recapitalizations.

stage geographies

European Capital Services ' Paris office implemented two transactions, one
previously announced, totaling euro 64 million ( $75 million): euro 29 million
in the One Stop Buyout of Marco Polo Foods, the leading producer in the
European commercial sushi market, and euro 35 million in Eau Ecarlate, the
leading supplier of branded fabric care products to the French retail market,
to support Axa Private Equity's buyout .

About Kodiak Venture Partners

Kodiak Venture Partners is a Waltham, Massachusetts-based venture
capital firm focused on seed and early stage investments in emerging
communications/IT , semiconductor and software companies.

wwg entrepreneurial

com. and Canada, Kodiak Venture Partners
builds relationships with entrepreneurs seeking accelerated market
success.

capitalize tradable

A.EuropeanCapital. Additionally, Murray Berkowitz
has been appointed Technology Partner, from his previous role of
Entrepreneur-In-Residence. Before serving as a consultant, Breen was Chief Financial
Officer at Delta Global Trading, a trading advisory firm specializing
in fixed income and derivative markets.com

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