European Capital Receives Bond Payment

European Capital has received a repayment of €10 million of junior mezzanine bonds from Newglass, parent company of portfolio company Devglass, a French manufacturer of dual-pane insulated glass.

Press Release:

St. Peter Port, Guernsey – 18 December 2008 – European Capital Limited and its subsidiaries (LSE: ECAS) (“European Capital”) announced today that they have received a repayment of €10 million of junior mezzanine bonds from Newglass, parent company of portfolio company Devglass, the leading independent French manufacturer and distributor of dual-pane insulated glass for windows.

“We are very happy with our investment in Devglass and our working relationship with the company’s highly experienced management team,” said Stéphane Legrand, Director, European Capital Financial Services Limited (”European Capital Services”). “Devglass has grown by 20% in 2008, in line with its average annual growth rate over the past five years. The group also increased its staff by more than 50 employees during the year.”

“Devglass benefits from the development of the regulatory framework and the strengthening of government incentives aimed at reducing energy consumption,” said Olivia Reveilliez, Manager, European Capital Services. “In addition, Devglass has continued to increase its market share due to its highly customer oriented business model.”

“Following substantial business plan outperformance, Devglass is able to reduce its financing cost and accelerate its development,” said Olivier Rambeau, Chairman of Devglass. “In 2009, the group will pursue domestic development through organic growth, as well as acquisitions.”

European Capital has invested over €1 billion ($1.4 billion) in France and €3.3 billion ($4.1 billion) in Europe since its inception.

For more information about European Capital’s portfolio, please go to www.europeancapital.com

ABOUT EUROPEAN CAPITAL
European Capital is a publicly traded investment company for pan-European equity, mezzanine and senior debt investments with current capital resources of approximately €2.7 billion ($3.7 billion). It is managed by European Capital Financial Services (Guernsey) Limited (“ECFSG” or the “Investment Manager”), a wholly-owned affiliate of American Capital, Ltd.

European Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts and provides capital directly to private and public companies headquartered primarily in Europe. European Capital generally invests between €5 million and €500 million per transaction in equity, mezzanine debt and senior debt to fund growth, acquisitions and recapitalisations.

The investment objective of European Capital is to provide investors with dividend income and the potential for share value appreciation by investing in debt and equity investments in private and public companies headquartered primarily in Europe.

European Capital seeks to achieve this through pursuing the following types of investments:

European Capital One Stop Buyouts™
Through our One Stop Buyouts™, European Capital provides equity, mezzanine debt and senior debt as the lead investor in the buyout of private and public companies.

Mezzanine Direct with Sponsors
European Capital provides one stop financing of subordinated debt and equity for buyouts sponsored by private equity firms where European Capital is either the sole or lead mezzanine debt investor.

Syndicated Mezzanine and Senior Debt
European Capital provides mezzanine financing for buyouts sponsored by private equity firms where European Capital is neither the sole nor lead mezzanine or senior debt investor.

Direct Investments
European Capital provides subordinated debt and equity financing directly to private and public companies, which is used for growth, acquisitions or recapitalizations, and investing in structured finance vehicles.

ABOUT AMERICAN CAPITAL
American Capital, with $17 billion in capital resources under management, 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 €5 million to €500 million per company in Europe. American Capital was founded in 1986 and currently has 11 offices in the U.S., Europe and Asia.