European Capital

/C O R R E C T I O N -- European Capital Limited/

    St. Peter Port, Guernsey, Channel Islands (ots/PRNewswire) -

    In the news release, European Capital (Nasdaq: ACAS) Increases Q3 Dividend 30% to euro 0.13, issued earlier today by European Capital Limited over PR Newswire, was incorrectly transmitted by PR Newswire, the complete, corrected release follows:

ST. PETER PORT, Guernsey, Channel Islands, August 22 /PRNewswire/ --

@@start.t1@@                  European Capital Increases Q3 Dividend 30% to euro 0.13
          Reports euro 0.18 NOI and euro 0.21 Realised Earnings in Q2 2007@@end@@

    European Capital Limited ("European Capital") (LSE: ECAS) announced today its third quarter 2007 dividend and its results for the second quarter of 2007.

    THIRD QUARTER 2007 DIVIDEND DECLARATION

    European Capital's Board of Directors has declared a third quarter 2007 dividend of euro 0.13 per share payable on 26 October 2007 to record holders of its ordinary share on the register as of 16:30 BST on 28 September 2007. This is a 30% increase over the second quarter 2007 dividend of euro 0.10 per share. This is in line with the dividend target announced at the time European Capital declared its second quarter 2007 dividend. European Capital has now paid or declared a total of euro 24.9 million in dividends since its May 2007 initial public offering ("IPO").

    2007 DIVIDEND GUIDANCE

    European Capital is reiterating its target of total 2007 dividends post IPO of euro 0.37 per share. This would represent a 37% increase over the total 2007 post IPO dividends targeted in the European Capital prospectus of euro 0.27 per share. European Capital continues to target a fourth quarter 2007 interim dividend of euro 0.14 per ordinary share.

    SECOND QUARTER 2007 RESULTS

    Earnings for the quarter increased euro 23.4 million to euro  25.7 million, compared to euro 2.3 million for the second quarter of 2006. Earnings per share for the quarter increased euro 0.24 to euro 0.27 compared to euro 0.03 for the second quarter of 2006. For the quarter, net portfolio appreciation and gains, excluding foreign exchange translation, totalled euro 3.2 million compared to euro-nil for the second quarter of 2006.

    Earnings less appreciation (depreciation) and foreign currency appreciation (depreciation) ("Realised Earnings") increased euro 0.17 to  euro 0.21 per share for the quarter compared to euro 0.04 per share for the  second quarter of 2006. Net operating income ("NOI") increased euro 0.13 to  euro 0.18 per share from euro 0.05 per share for the second quarter of 2006.

    "This is a great time to be a well capitalised financial institution," said Malon Wilkus, European Capital Chairman. "With less than 0.6:1 debt to equity, European Capital has huge competitive advantages in this new credit environment. With our One Stop Buyout(TM) and one stop financing, we fund transactions that are impossible for some of our competitors to close. With demonstrated access to capital, we are taking advantage of lower multiples, wider spreads and better terms to generate outstanding risk adjusted returns for our shareholders."

    Second quarter 2007 dividends were euro 0.10 per share. For the quarter, European Capital's dividend payout ratio was 48% of Realised Earnings of  euro 0.21 per share. European Capital's net asset value ("NAV") per share at  30 June 2007 was euro 9.82, a euro 0.09 increase over the 10 May 2007 IPO NAV per share of euro 9.73.

    "The advantage of our business model becomes more evident in a widening spread environment like today," said John Erickson, American Capital Chief Financial Officer. "As interest rate spreads widen, our interest income and our spread income generally grows, which allows us to increase our NOI and our dividends. During widening spread environments, we may experience slower growth in our equity portfolio as more expensive credit reduces valuation multiples, but our growing spread income should allow us to continue to generate excellent returns on equity, just when other companies find it difficult to produce similar results."

    During the second quarter of 2007, European Capital completed an IPO of 14.6 million shares, including the full exercise of the over-allotment option granted to the underwriters, at a price of euro 9.84 per share, for gross proceeds of approximately euro 144 million. The shares are traded on the London Stock Exchange under the ticker symbol ECAS. Prior to the IPO, American Capital exercised its warrant to purchase 18.75 million shares of European Capital for an exercise price of euro 9.50 per share, or  euro 178 million. As at 30 June 2007 European Capital's market capitalisation  was euro 1.1 billion.

    "The current credit and economic environment is ideal for us to continue our growth," said Ira Wagner, President of European Capital Financial Services Limited, the Investment Sub-Manager of European Capital. "In the past few weeks, European Capital's stock price has declined along with most financial stocks. However, European Capital has a much better capitalised balance sheet than many financial institutions, CLOs and hedge funds; some of which are levered above 4:1 debt to equity. We are levered less than 0.6:1 debt to equity and are in good shape to handle continued uncertainty in the capital markets. In recent months we have opened offices in Frankfurt and Madrid to provide better coverage of middle market opportunities in these markets."

    In the second quarter of 2007, European Capital invested euro 0.7 billion of capital. In the second quarter of 2007, European Capital had  euro 3.2 million of net appreciation, depreciation, gains and losses,  excluding foreign currency exchange translation. This is comprised of net  appreciation of euro 0.9 million and net gains of euro 2.3 million.

    The weighted average effective interest rate on European Capital's total investments in debt securities at 30 June 2007 was 12%. At the same time, one loan totalling euro 20 million was on non-accrual. This is 1.6% of total loans at 30 June 2007, compared to no loans at 30 June 2006. The fair value of this loan at 30 June 2007 was euro 10.7 million or 0.9% of total loans at fair value.

    "Our portfolio continues to perform very well, with our delinquencies and non-accruals at less than 2% of total loans," said Ira Wagner, "We believe the current environment, whereby many investors have lost access to capital despite very low commercial loan default rates, will result in a significant increase in our investment opportunities over and above our already outstanding deal flow. We continue to focus on developing one of the largest middle market deal flows in our industry so that we can continue to be extraordinarily selective as to which companies we invest in. We also continue to have the significant advantage of not being reliant on commercial or investment banks for financing for our One Stop Buyouts(TM) and one-stop-financings because we are able to fund the entire transaction. In addition, when we conclude that it is time to sell a portfolio company, we may choose to provide the buyer with the appropriate debt financing to supplement their equity to fund the transaction; a capability most of our competitors lack. Therefore, we continue to believe that our capital flexibility and our very large deal flow will provide us with excellent investment and exit opportunities going forward."

    Since its inception in August 2005 up until 30 June 2007, European Capital has invested in 58 portfolio companies totaling euro 2.3 billion. European Capital has earned a 19% compounded annual return, including interest, dividends, fees and net gains, on eight complete portfolio company realisations of senior debt, subordinated debt and equity investments, totalling euro 214 million of invested capital. These realisations represent 9% of all amounts invested by European Capital.

    "Our low levered balance sheet and capital markets creditability have allowed us to execute our IPO during a time when access to capital was closed to many institutions," said Tom McHale, Senior Vice President of Finance, American Capital. "We have no investments in sub prime residential mortgages. Zero percent of our portfolio today is in CMBS investments. Less than 0.5% of our portfolio assets are in CDOs. We have few covenant-lite loans. And, since inception our equity investments have produced a 27% IRR. We are very well capitalised and have a portfolio that is performing in a market where opportunities have just become far more profitable."

    THIRD PARTY VALUATION OF PORTFOLIO INVESTMENTS

    European Capital's Board of Directors is responsible for determining the fair value of European Capital's portfolio investments on a quarterly basis. In that regard, the Board retains Houlihan Lokey Howard & Zukin Financial Advisors Inc. ("Houlihan Lokey") to assist it by having Houlihan Lokey regularly review a designated percentage of fair value determinations. Houlihan Lokey is a leading valuation firm engaged in approximately 1,000 valuation assignments per year for clients worldwide. Each quarter, Houlihan Lokey reviews European Capital's determination of the fair value of all portfolio companies that have been a portfolio company at least one year and that have a fair value in excess of euro 10 million. In the second quarter of 2007, Houlihan Lokey reviewed valuations of 12 portfolio company investments having an aggregate euro 355 million in fair value as of the period end. In addition, Houlihan Lokey representatives attend European Capital's quarterly valuation meetings and provide periodic reports and recommendations to the Audit Committee of the Board of Directors.

    For those portfolio company investments that Houlihan Lokey has reviewed during each applicable period, using the scope of review set forth by European Capital's Board of Directors, the Board has made a fair value determination that is within the aggregate range of fair value for such investments as determined by Houlihan Lokey.

    INTERIM CONSOLIDATED FINANCIAL STATEMENTS

    European Capital has made available its Interim Consolidated Financial Statements for the six months ended 30 June 2007. A copy may be downloaded from www.EuropeanCapital.com . Copies of the Interim Consolidated Financial Statements will be submitted to the UK Listing Authority and will be shortly available for inspection at the UK Listing Authority's Document Viewing Facility, which is situated at: Financial Services Authority, 25 North Colonnade, Canary Wharf, London E14 5HS Tel: +44-(0)-20-7676-1000

    Financial highlights for the quarter are as follows:

@@start.t2@@                                            EUROPEAN CAPITAL LIMITED
                                          CONSOLIDATED BALANCE SHEETS
                                 As of 30 June 2007 and 31 December 2006
                                  (in thousands, except per share data)
                            (all amounts in euros unless otherwise noted)
                                                                                                    Q2 2007 Versus
                                                          30 June        31 December          Q4 2006
                                                            2007                2006            euro         %
                                                        (unaudited)
      Assets
      Investments at fair value
        (Cost basis of euro
        1,587,174, and euro
        1,072,938 respectively)            1,607,020      1,077,709      529,311      49%
      Cash and cash equivalents                 7,349          85,932      (78,583)  -91%
      Restricted cash                                67,938          12,913        55,025    426%
      Other                                                11,163          18,031        (6,868)  -38%
            Total assets                         1,693,470      1,194,585      498,885      42%
      Liabilities and Shareholders'
        Equity
      Debt (maturing within one
        year euro 2,196 and euro 39
        respectively)                                606,774         422,414      184,360      44%
      Due to European Capital
        Financial Services
        (Guernsey) Limited                          5,352            3,568         1,784      50%
      Accrued dividends payable                10,836          21,750      (10,914)  -50%
      Other                                                 6,648            2,699         3,949    146%
            Total liabilities                    629,610         450,431      179,179      40%
      Commitments and contingencies
      Shareholders' equity:
         Ordinary shares (nil par
          value, authorised to issue
          unlimited number of shares,
          108,364 issued and
          outstanding)                          1,030,371                  -  1,030,371      NM
         Preference shares (nil par
          value, authorised to issue
          unlimited number of shares,
          75,000 issued and
          outstanding)                                        -         737,696    (737,696) -100%
         Undistributed net realised
          earnings                                      14,542            1,261        13,281  1053%
         Net unrealised foreign
          currency appreciation                  1,456                332         1,124    339%
         Net unrealised appreciation
          of investments                            17,491            5,638        11,853    210%
         Other reserve                                        -              (773)          773    100%
            Total shareholders' equity  1,063,860         744,154      319,706      43%
            Total liabilities and
              shareholders' equity          1,693,470      1,194,585      498,885      42%
      NM = Not Meaningful
                                            EUROPEAN CAPITAL LIMITED
                                  CONSOLIDATED STATEMENTS OF OPERATIONS
                         Three and Six Months Ended 30 June 2007 and 2006
                                  (in thousands, except per share data)
                                                        (unaudited)
                            (all amounts in euros unless otherwise noted)
                                                                                                    Three Months
                                                                  Three Months Ended          Ended
                                                                  30 June    30 June      30 June 2007
                                                                      2007         2006         Versus 2006
                                                                                                        euro        %
      OPERATING INCOME:
      Interest and dividend income                  39,680      12,557      27,123    216%
      Fee and Other Income                                 1,737         (146)      1,883  1290%
         Total operating income                         41,417      12,411      29,006    234%
      OPERATING EXPENSES:
      Interest                                                    8,264        2,389        5,875    246%
      Management fee and reimbursed expenses    9,373        5,850        3,523      60%
      Incentive fee                                            5,115              -        5,115      NM
      General and administrative                        1,831          489        1,342    274%
         Total operating expenses                      24,583        8,728      15,855    182%
      OPERATING INCOME BEFORE INCOME TAXES      16,834        3,683      13,151    357%
      Provision for income taxes                          (35)            -          (35)    NM
      NET OPERATING INCOME                                16,799        3,683      13,116    356%
      Net foreign currency gains (losses)            869      (1,053)      1,922    183%
      Net gain on investments                            2,321          202        2,119  1049%
      TOTAL NET REALISED EARNINGS                    19,989        2,832      17,157    606%
      Net foreign currency appreciation
        (depreciations)                                        4,906         (292)      5,198  1780%
      Net appreciation (depreciation)
         of investments                                          840         (202)      1,042    516%
      INCREASE IN NET ASSETS RESULTING FROM
        OPERATIONS ("EARNINGS")                         25,735        2,338      23,397  1001%
      NET OPERATING INCOME PER SHARE:
         Basic & Diluted                                        0.18         0.05         0.13    263%
      NET REALISED EARNINGS PER SHARE:
         Basic & Diluted                                        0.21         0.04         0.17    462%
      NET EARNINGS PER SHARE:
         Basic & Diluted                                        0.27         0.03         0.24    776%
      WEIGHTED AVERAGE NUMBER OF SHARES
        OUTSTANDING:
         Basic and Diluted                                 94,247      75,000      19,247      26%
      DIVIDENDS DECLARED PER SHARE                      0.10         0.00         0.10    100%
      NM = Not Meaningful@@end@@

@@start.t3@@                                            EUROPEAN CAPITAL LIMITED
                                  CONSOLIDATED STATEMENTS OF OPERATIONS
                         Three and Six Months Ended 30 June 2007 and 2006
                                  (in thousands, except per share data)
                                                        (unaudited)
                          (all amounts in euros unless otherwise noted)
                                                                  Six Months Ended    Six Months Ended
                                                                  30 June    30 June        30 June 2007
                                                                      2007         2006         Versus 2006
                                                                                                      euro        %
      OPERATING INCOME:
      Interest and dividend income                 73,962      19,543      54,419    278%
      Fee and Other Income                                5,027        1,020        4,007    393%
         Total operating income                        78,989      20,563      58,426    284%
      OPERATING EXPENSES:
      Interest                                                 15,204        3,896      11,308    290%
      Management fee and reimbursed
        expenses                                                20,739      13,070        7,669      59%
      Incentive fee                                          5,115              -        5,115      NM
      General and administrative                      3,361        1,453        1,908    131%
         Total operating expenses                    44,419      18,419      26,000    141%
      OPERATING INCOME BEFORE INCOME TAXES    34,570        2,144      32,426  1512%
      Provision for income taxes                        (179)            -         (179)    NM
      NET OPERATING INCOME                              34,391        2,144      32,247  1504%
      Net foreign currency gains
        (losses)                                                 3,155      (2,141)      5,296    247%
      Net gain on investments                          2,321          202        2,119  1049%
      TOTAL NET REALISED EARNINGS                  39,867          205      39,662      NM
      Net foreign currency appreciation
        (depreciations)                                      1,124         (982)      2,106    214%
      Net appreciation (depreciation) of
        investments                                          11,853        1,204      10,649    884%
      INCREASE IN NET ASSETS RESULTING FROM
        OPERATIONS ("EARNINGS")                        52,844          427      52,417      NM
      NET OPERATING INCOME PER SHARE:
         Basic & Diluted                                      0.41         0.03         0.38  1321%
      NET REALISED EARNINGS PER SHARE:
         Basic & Diluted                                      0.47         0.00         0.47      NM
      NET EARNINGS PER SHARE:
         Basic & Diluted                                      0.62         0.00         0.62    100%
      WEIGHTED AVERAGE NUMBER OF SHARES
        OUTSTANDING:
         Basic and Diluted                                84,677      75,000        9,677      13%
      DIVIDENDS DECLARED PER SHARE                    0.31         0.00         0.31    100%
      NM = Not Meaningful
                                            EUROPEAN CAPITAL LIMITED
                                          OTHER FINANCIAL INFORMATION
         Three Months Ended 30 June 2007, 31 December 2006 and 30 June 2006
                                  (in thousands, except per share data)
                                                        (unaudited)
                            (all amounts in euros unless otherwise noted)
                                                          Q2              Q4      Q2 2007 vs. Q4 2006
                                                         2007          2006        euro              %
      New Investments:
         Senior Debt                            330,409    187,650    142,759         76%
         Subordinated Debt                  292,994    129,740    163,254        126%
         Preferred Equity                      74,879      63,795      11,084         17%
         Common Equity                            2,072      14,031    (11,959)      -85%
         CDO/CLO Investments                  6,510              -        6,510         NM
                Total                                706,864    395,216    311,648         79%
         European Capital Sponsored
          Buyouts                                 420,636    233,367    187,269         80%
         Financing for Private
          Equity Buyouts                      194,719    148,091      46,628         31%
         Direct Investments                          -              -              -          -
         Add-on Financing for
          Acquisitions                          15,471      13,758        1,713         12%
         Add-on Financing for
          Recapitalisations                  69,528              -      69,528         NM
         CDO/CLO Investments                  6,510              -        6,510         NM
                Total                                706,864    395,216    311,648         79%
        Realisations:
          Senior Loan Syndications      214,032    122,702      91,330         74%
          Principal Prepayments            85,634      30,306      55,328        183%
          Payment of Accrued
            Payment-in-kind Interest
            and Dividends and
            Original Issue Discount         5,894              -        5,894         NM
          Sale of Equity Investments      2,322        1,357          965         71%
                 Total                              307,882    154,365    153,517         99%
        Appreciation, Depreciation,
         Gains and Losses:
          Gross Gains                              2,321        1,345          976         73%
          Gross Losses                                  -              -              -          -
                 Net Gains                          2,321        1,345          976         73%
          Gross Appreciation at 6,
            2 and 0 Portfolio Companies 13,491        3,678        9,813        267%
          Gross Depreciation at 2,
            1 and 1 Portfolio
            Companies                            (12,651)            -    (12,651)        NM
                 Current Portfolio Net
                  Appreciation                        840        3,678      (2,838)      -77%
          Net Depreciation From the
            Recognition of Net Gains              -         (402)         402         NM
          Net Appreciation
            (Depreciation) for
            Foreign Currency
            Translation                            4,906        1,819        3,087        170%
          Net Gains (Losses) for
            Foreign Currency
            Translation                                869         (829)      1,698         NM
                 Net Gains, Losses,
                  Appreciation and
                  Depreciation                    8,936        5,611        3,325         59%
        Other Financial Data:
          Net Asset Value per Share         9.82         9.92        (0.10)        -1%
          Market Capitalisation        1,146,491            NM            NM         NM
          Total Enterprise Value      1,745,916            NM            NM         NM
         Credit Quality:
          Weighted Average Effective
            Interest Rate on Debt
            Investments                              12.0%        12.5%
          Loans on Non-Accrual at
            Face                                      20,000              -      20,000         NM
          Loans on Non-Accrual at
            Fair Value                            10,672              -      10,672         NM
          Past Due Loans at Face                  -              -              -         NM
          Past Due and Non-Accrual
            Loans at Face as a
            Percentage of Total Loans         1.6%            0%
          Past Due and Non-Accrual
            Loans at Fair Value as a
            Percentage of Total Loans         0.9%            0%
          Number of Portfolio
            Companies on Non-Accrual
            and Past Due                                 1              -
         Return on Equity:
          LTM Net Operating Income
            Return on Average Equity
            at Cost                                      9.4%         7.9%
          LTM Realised Earnings
            Return on Average Equity
            at Cost                                    10.4%         7.9%
          LTM Earnings Return on
            Average Equity                         13.3%         9.5%
          Current Quarter Net
            Operating Income Return
            on Average Equity at Cost
            Annualised                                 7.4%        10.1%
          Current Quarter Realised
            Earnings Return on
            Average Equity at Cost
            Annualised                                 8.8%        10.4%
          Current Quarter Earnings
            Return on Average Equity
            Annualised                                11.3%        13.7%
         Dividends:
          Dividend Coverage
            (Realised Earnings per
            Basic Share/Dividend per
            Share)                                      2.10 x      1.48 x
          Dividend Payout Ratio
            (Dividend per
            Share/Realised Earnings
            per Basic Share)                      0.48 x      0.68 x
        NM = Not Meaningful@@end@@

@@start.t4@@                                            EUROPEAN CAPITAL LIMITED
                                          OTHER FINANCIAL INFORMATION
         Three Months Ended 30 June 2007, 31 December 2006 and 30 June 2006
                                  (in thousands, except per share data)
                                                        (unaudited)
                            (all amounts in euros unless otherwise noted)
                                                                         Q2        Q2 2007 vs. Q2 2006
                                                                        2006         euro            %
        New Investments:
          Senior Debt                                         33,005      297,404        901%
          Subordinated Debt                              104,098      188,896        181%
          Preferred Equity                                         -        74,879         NM
          Common Equity                                              -         2,072         NM
          CDO/CLO Investments                                    -         6,510         NM
                  Total                                         137,103      569,761        416%
          European Capital Sponsored
            Buyouts                                                      -      420,636        100%
          Financing for Private Equity
            Buyouts                                            137,103        57,616         42%
          Direct Investments                                      -                -          -
          Add-on Financing for Acquisitions              -        15,471         NM
          Add-on Financing for
            Recapitalisations                                      -        69,528         NM
          CDO/CLO Investments                                    -         6,510         NM
                  Total                                         137,103      569,761        416%
        Realisations:
          Senior Loan Syndications                    11,000      203,032      1846%
          Principal Prepayments                         51,306        34,328         67%
          Payment of Accrued Payment-in-
            kind Interest and Dividends and
            Original Issue Discount                            -         5,894         NM
          Sale of Equity Investments                  2,497          (175)        -7%
                  Total                                          64,803      243,079        375%
        Appreciation, Depreciation, Gains
         and Losses:
          Gross Gains                                              202         2,119      1049%
          Gross Losses                                                -                -          -
                  Net Gains                                         202         2,119      1049%
                                                                                                -
          Gross Appreciation at  6, 2 and
            0 Portfolio Companies                                -        13,491         NM
          Gross Depreciation at 2, 1 and 1
            Portfolio Companies                                  -      (12,651)        NM
                  Current Portfolio Net
                    Appreciation                                      -            840         NM
          Net Depreciation From the
            Recognition of Net Gains                      (202)          202         NM
          Net Appreciation (Depreciation) for
            Foreign Currency Translation                (292)        5,198      1780%
          Net Realised Gains (Losses)
            for Foreign Currency Translation      (1,053)        1,922        183%
                  Net Gains, Losses,
                    Appreciation and
                    Depreciation                              (1,345)      10,281        764%
        Other Financial Data:
          Net Asset Value per Share                      4.94          4.88         99%
          Market Capitalisation                                NM              NM         NM
          Total Enterprise Value                              NM              NM         NM
         Credit Quality:
          Weighted Average Effective
            Interest Rate on Debt
            Investments                                          12.2%
          Loans on Non-Accrual at Face                      -        20,000         NM
          Loans on Non-Accrual at Fair
            Value                                                         -        10,672         NM
          Past Due Loans at Face                                -                -         NM
          Past Due and Non-Accrual Loans at
            Face as a Percentage of Total
            Loans                                                         0%
          Past Due and Non-Accrual Loans at
            Fair Value as a Percentage of
            Total Loans                                                0%
          Number of Portfolio Companies on
            Non-Accrual and Past Due                          -
         Return on Equity:
          LTM Net Operating Income Return
            on Average Equity at Cost                    -2.5%
          LTM Realised Earnings Return on
            Average Equity at Cost                         -2.8%
          LTM Earnings Return on Average
            Equity                                                  -3.0%
          Current Quarter Net Operating
            Income Return on Average Equity
            at Cost Annualised                                 4.7%
          Current Quarter Realised Earnings
            Return on Average Equity at Cost
            Annualised                                              3.6%
          Current Quarter Earnings Return
            on Average Equity Annualised                 3.6%
         Dividends:
          Dividend Coverage (Realised
            Earnings per Basic
            Share/Dividend per Share)                         -
          Dividend Payout Ratio (Dividend
            per Share/Realised Earnings per
            Basic Share)                                              -
        NM = Not Meaningful
                                            EUROPEAN CAPITAL LIMITED
                                              STATIC POOL INFORMATION
                  Portfolio Statistics for Investments Made in Each of the
                                                 Following Years
                                                    (in thousands)
                                                        (unaudited)
                            (all amounts in euros unless otherwise noted)
      Portfolio statistics (1) (9)      2005            2006            2007      Aggregate
      Internal Rate of Return -
        All Investments (2) (8)            16.0%          16.7%          16.8%          16.5%
      Internal Rate of Return -
        Equity Investments
        only (2) (8) (10)                      38.6%          26.1%          14.6%          27.4%
      Original Investments and
        Commitments (8)                    237,436    1,201,561        876,545    2,315,542
      Total Exits and Prepayments
        of Original Investments (8)  42,624        519,175        220,147        781,946
      Total Interest, Dividends
        and Fees Collected (8)          23,269         72,786         12,239        108,294
      Total Net Gain on Investments      202          3,666                 -          3,868
      Current Cost of Investments  210,184        716,901        660,089    1,587,174
      Current Fair Value of
        Investments                          218,203        727,409        661,408    1,607,020
      Net Appreciation                        9,212          7,765                            16,977
      Non-Accruing Loans at Face              -         20,000                            20,000
      Non-Accruing Loans at
        Fair Value                                      -         10,672                            10,672
      Equity Interest at Fair Value 27,590        227,784        134,219        389,593
      Debt to EBITDA (3) (4)                 5.4              6.2              7.7              6.7
      Interest Coverage (3)                  4.6              2.8              1.8              2.6
      Debt Service Coverage (3)            2.9              1.8              1.5              1.8
      Average Age of Companies        90 years      91 years      43 years      71 years
      Ownership Percentage                    8.2%          31.2%          18.8%          23.0%
      Average Sales (5)                  683,128        439,931        241,330        391,385
      Average EBITDA (6)                 107,174         58,404         41,779         58,193
      Average EBITDA margin (6)          15.7%          13.3%          17.3%          14.9%
      Total Sales (5)                  5,449,825  15,841,798    6,236,113  27,527,736
      Total EBITDA (6)                    900,347    2,278,421    1,348,135    4,526,903
      % of Senior Loans (7)                      9%              22%              44%              29%
      % of Loans with Lien (7)              100%            100%              95%              98%
      (1)  Static pool classification is based on the year the initial
              investment was made.  Subsequent add-on investments are included in
              the static pool year of the original investment.
      (2)  Assumes investments are exited at current fair value.
      (3)  These amounts do not include investments in which European Capital
              owns only equity.
      (4)  For portfolio companies with a nominal EBITDA amount, the portfolio
              company's maximum debt leverage is limited to 15 times EBITDA.
      (5)  Sales of the most recent twelve months, or when appropriate, the
              forecasted twelve months.
      (6)  EBITDA of the most recent twelve months, or when appropriate, the
              forecasted twelve months.
      (7)  As a percentage of our total debt investments.
      (8)  Non euro-denominated amounts are retranslated at the exchange rate
              ruling at the date of original investment.
      (9)  Non euro-denominated balances, other than those referred to in (8),
              are retranslated at the exchange rate ruling at the balance sheet
              date.
      (10) Excludes equity investments that are the result of conversions of
              debt and warrants received with the issuance of debt.@@end@@

    A summary of European Capital's dividend history post IPO and target follows. For more information, please visit our website at www.EuropeanCapital.com or call our Investor Relations Department at +44-(0)-800-458-0770.

@@start.t5@@                      EUROPEAN CAPITAL'S DIVIDEND HISTORY POST MAY 2007 IPO
                            (all amounts in euros unless otherwise noted)
                                                      % Change of Dividend
      Year and Quarter         Dividend         Over Prior Period                Total
      2007 Year-to-Date         0.37                         N/A                          0.37
      Q4 Target                      0.14
      Q3 Declared                  0.13
      Q2 (IPO = 10 May 2007) 0.10@@end@@

    SHAREHOLDER CALL

    European Capital invites shareholders, analysts and other interested persons to attend the European Capital Shareholder Call on Thursday 23 August 2007 at 15:00 BST (10:00 EDT). The dial in number will be +1-612-332-0335. Callers within the United States should dial +1-800-288-8961. Please advise the operator you are dialling in for the European Capital Shareholder Call.

    Point your browser to www.EuropeanCapital.com and click on the Q2 2007 Shareholder Call Slide Show button.

    BEFORE THE CALL:

    REVIEW SLIDE PRESENTATION IN ADVANCE OF THE SHAREHOLDER CALL

    The quarterly shareholder presentation includes a slide presentation to accompany the call that participants may download and print prior to the call. You may wish to take the time to review the slides in advance of the Shareholder Call.

    DURING THE CALL:

    VIEW STREAMING SLIDE PRESENTATION DURING THE SHAREHOLDER CALL

    During the Shareholder Call you may watch and listen to the webcast or listen to the Shareholder Call by phone and step through the slides at your own pace.

    AFTER THE CALL:

    LISTEN AND VIEW AUDIO SLIDE PRESENTATION AFTER THE CALL

    The audio of the Shareholder Call combined with the slide presentation will be made available after the call on 23 August on our website www.EuropeanCapital.com.

    AUDIO ONLY PRESENTATION AVAILABLE AFTER THE SHAREHOLDER CALL:

    There will be a phone recording available from 22:00 BST Thursday 23 August until 04:59 BST Saturday 8 September. If you are interested in hearing the recording of the presentation, please dial +1-320-365-3844. Callers within the United States may dial +1-800-475-6701. The access code for all callers is 882240.

    For further information or questions, please do not hesitate to call our Investor Relations Department at +44-(0)-800-458-0770.

    ABOUT EUROPEAN CAPITAL

    European Capital is a publicly traded investment company for pan-European equity, mezzanine and senior debt investments with capital resources of approximately euro 2.1 billion (US$2.9 billion). It is managed by European Capital Financial Services (Guernsey) Limited ("ECFSG" or "the Investment Manager"), a wholly-owned affiliate of American Capital Strategies, Ltd ("American Capital").

    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 predominantly in Europe. European Capital generally invests between euro 5 million and euro 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(TM)

    Through our One Stop Buyouts(TM), 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 debt and equity financing 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 and senior 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 debt and equity financing directly to private and public companies, which is used for growth, acquisitions or recapitalisations, and investing in structured finance vehicles.

    Companies interested in learning more about European Capital's flexible financing should contact Simon Henderson or Nathalie Faure Beaulieu at  +44-(0)-20-7539-7000 in London, Jean Eichenlaub at + 33-(0)-1-40-68-06-66 in  Paris, Robert von Finckenstein at +49-(0)-69-71-71-297-0 in Frankfurt, or  Luis Felipe Castellanos at +34-91-745-99-63 in Madrid, or visit the website  at www.EuropeanCapital.com.

    ABOUT AMERICAN CAPITAL

    American Capital Strategies Ltd. is an affiliate of European Capital and the only alternative asset management company that is a member of the S&P 500. With US$16 billion in assets under management, American Capital is the largest U.S. publicly traded private equity fund and one of the largest publicly traded alternative asset managers. 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 US$5 million to US$800 million per company in North America and euro 5 million to  euro 500 million per company in Europe.

    IMPORTANT DISCLOSURES

    This document may contain "forward-looking statements". By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Many of these risks and uncertainties relate to factors beyond European Capital's control or which cannot be estimated precisely. These Factors include, but are not limited to, uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional, national or international economic conditions, and changes in the conditions of the industries in which European Capital has made investments. Actual outcomes and results may therefore differ materially from any outcomes or results expressed or implied by any such forward-looking statements.

    Performance data quoted above represents past performance of European Capital. Past performance does not guarantee future results and the investment return and principal value of an investment in European Capital will likely fluctuate. Consequently, an investor's shares, when sold, may be worth more or less than their original cost. Additionally, European Capital's current performance may be lower or higher than the performance data quoted above.

    Nothing in this document is intended to be a profit forecast.

      CONTACT:
      John Erickson, Chief Financial Officer, American Capital
      +1-301-951-6122
      Tom McHale, Senior Vice President, Finance, American Capital
      +1-301-951-6122

ots Originaltext: European Capital
Im Internet recherchierbar: http://www.presseportal.ch

Contact:
John Erickson, Chief Financial Officer, American Capital,
+1-301-951-6122, or Tom McHale, Senior Vice President, Finance,
American Capital, +1-301-951-6122



Weitere Meldungen: European Capital

Das könnte Sie auch interessieren: