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American Capital Invests in Affordable Care for Add-On Acquisition

2008-07-25 13:20:00

American Capital Invests in Affordable Care for Add-On Acquisition

    BETHESDA, Md., July 25 /EMWNews/ -- American Capital, Ltd.

(Nasdaq: ACAS) announced today that in June it invested in its portfolio

company Affordable Care, Inc. to support the acquisition of a management

services platform supporting five dental practices from Fields Dental

Management LLC and Piedmont Dental Center P.A., a dental care provider with

locations in South Carolina. Affordable Care is a dental practice

management services company that supports a network of affiliated dental

practices providing removable prosthetics and related services. American

Capital's investment takes the form of junior and senior subordinated debt.

    "We are pleased to support Affordable Care's growth with this

complementary add-on acquisition," said Brian Graff, American Capital

Regional Managing Director. "Since 2006, American Capital has backed

Affordable Care, the industry leader in providing management services to

affiliated dental practices with convenient, low-cost denture services."

    American Capital, including is global fund management business, has

approximately $21 billion in capital resources under management(1) in over

290 portfolio companies. American Capital has invested directly and through

its global asset management business approximately $8.2 billion in the last

twelve months, $4.9 billion year to date and $20 million quarter to date.

Not including funds under management, American Capital has invested

approximately $4.4 billion in the last twelve months, $1.8 billion year to

date and $20 million quarter to date. American Capital assisted in the

syndication of approximately $1.3 billion of senior debt for its portfolio

companies in the last twelve months and over $300 million year to date. For

more information about American Capital's portfolio, go to .

    "The acquisition of Piedmont Dental presents an excellent opportunity

for Affordable Care to expand its footprint in South Carolina," said Jon

Isaacson, American Capital Managing Director, Buyouts. "The Piedmont Dental

employees have driven exceptional same store sales growth and we expect

continued success with Affordable Care."

    "Affiliating with the Piedmont Dental practices will add scale to an

established platform led by a proven management team," said Sean Eagle,

American Capital Principal, Buyouts. "Affordable Care management continues

to execute and grow its business and we are excited to support this highly

successful group."

    American Capital first invested in Affordable Care in 2006. Founded in

1975 and based in Kinston, NC, the Affordable Care network is America's

largest provider of dentures. The company currently provides dental

practice management and on-site dental laboratory services supporting a

network of 134 affiliated dental practices operating under the brand of

Affordable Dentures. The company operates in 35 states (predominantly east

of the Mississippi) with approximately 175 affiliated dentists. The

Affordable Care-affiliated practices provide low-cost dentures and same-day

service with no appointment necessary.

    Piedmont Dental was founded in 1979 and has locations across South

Carolina. Piedmont Dental's products and services, which include removable

    prosthetics, extractions, relines and repairs, closely mirror those

offered by the other dental practices affiliated with Affordable Care.

    "We are glad to work with our partners at American Capital to add five

of the Piedmont Dental offices to our network of affiliated practices,"

said Tim Pate, CEO, Affordable Care. "We have come to rely on the

hard-working and flexible team at American Capital over the years and look

forward to continuing our relationship through this exciting transaction."


    American Capital, with $21 billion in capital resources under

management(1), is the only private equity fund and the largest alternative

asset management company in the S&P 500. American Capital, both directly

and through its global asset management business, originates, underwrites

and manages investments in private equity, leveraged finance, real estate

and structured products. American Capital and its affiliates invest from $5

million to $800 million per company in North America and euro 5 million to

€500 million per company in Europe. American Capital was founded in 1986

and currently has 12 offices in the U.S. and Europe.

    As of June 30, 2008, American Capital shareholders have enjoyed a total

return of 328% since the Company's IPO-an annualized return of 14%,

assuming reinvestment of dividends. American Capital has paid a total of

$2.5 billion in dividends and paid $28.20 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 or

    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.

(1) Capital resources under management is an estimate of internally and externally managed assets and available capital resources as of May 31, 2008 and does not include any fair value adjustments subsequent to March 31, 2008.

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