European Capital

European Capital Reports euro 0.21 NOI and euro 0.21 Realised Earnings in Q3 2007

    St. Peter Port, Guernsey, Channel Islands, November 6 (ots/PRNewswire) -

    - Reiterates Q4 Dividend Guidance of euro 0.14

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

    FOURTH QUARTER 2007 DIVIDEND GUIDANCE

    European Capital reiterates guidance for a fourth quarter 2007 dividend of euro 0.14 per share. This would be an 8% increase over the third quarter 2007 dividend of euro 0.13 per share. It is in line with the dividend target announced at the time European Capital declared its second quarter 2007 dividend and represents a 37% increase from guidance provided in the Listing Prospectus. European Capital has now paid a total of euro 24.9 million in dividends since its May 2007 initial public offering ("IPO").

    THIRD QUARTER 2007 RESULTS

    European Capital also announced that for the third quarter of 2007, quarterly net operating income ("NOI") (earnings less appreciation, depreciation, gains and losses) increased 62% to euro 23 million, compared to euro 14 million for the third quarter of 2006. NOI per share increased 11% to euro 0.21 per share from euro 0.19 per share for the third quarter of 2006.

    Earnings less appreciation (depreciation) ("Realised Earnings") increased 44% to euro 23 million, compared to euro 16 million for the third quarter of 2006. Realised Earnings per share were the same at euro 0.21 per share for the quarter compared to the third quarter of 2006. The last twelve months Realised Earnings return on average equity totals 10%.

    Earnings for the third quarter of 2007 decreased 84% to euro 3 million, compared to euro 17 million for the third quarter of 2006. Earnings per share for the quarter decreased 87% to euro 0.03 compared to euro 0.23 for the third quarter of 2006. The last twelve months Earnings return on equity totals 9%.

    "We are pleased with our third quarter performance, particularly compared to many other financial institutions. We continue to report outstanding Realised Earnings, significantly in excess of our dividends, resulting in a 62% dividend payout ratio," said Malon Wilkus, European Capital Chairman. "Our Realised Earnings are driven by the exceptional performance of our underlying assets, with a 15% annual return since our inception in August 2005 on all of our assets. In fact, the 21% of our assets comprising our equity investments have experienced 25% annual returns since inception. These returns have been corroborated by the euro 0.9 billion of realisations we've experienced since inception in which we've enjoyed a 16% weighted average IRR. Not only are these excellent realised returns, but 57% of these realisations were from senior debt, providing our shareholders with exceptional risk adjusted returns. Our risk profile is further enhanced by an extremely conservative balance sheet and the fact that more than 50% of our Realised Earnings are paid out in cash dividends that the market can't re-price and we can't restate. This is a great time to have permanent capital, a great time to have one of the best capitalised balance sheets and a great time to be levered less than 1:1 debt to equity."

    As previously announced, third quarter 2007 dividends were euro 0.13 per share, a 30% growth over the second quarter 2007 dividend of euro 0.10 per share. For the quarter, European Capital's dividend payout ratio was 62% of Realised Earnings of euro 0.21 per share. European Capital's net asset value ("NAV") per share at 30 September 2007 was euro 9.71, a euro 0.02 decrease, including distributions of euro 0.23 per share, from the 10 May 2007 IPO NAV per share of euro 9.73.

    "European Capital's portfolio continues to perform well," said John Erickson, Director, European Capital Financial Services (Guernsey) Limited, European Capital's Investment Manager. "Despite the euro 3.7 million in portfolio company net depreciation this quarter, European Capital's net portfolio company appreciation and gains have totalled euro 18 million from inception to date, not counting foreign currency translation. Delinquency or non-accruing loans are at a low level of 2% and have been fully depreciated. European Capital's aggregate portfolio is generating a 15% IRR after taking into consideration the depreciation. We believe that the performance of European Capital's portfolio remains outstanding."

    In the third quarter of 2007, European Capital invested euro 0.4 billion of capital to make a total of euro 1.9 billion of invested assets. In the third quarter of 2007, European Capital had euro 3.7 million of net portfolio depreciation, excluding foreign currency exchange translation. Foreign currency net depreciation and losses were euro 16.7 million, mainly as a result of the weakening of sterling against the euro. This is comprised of net depreciation of euro 16.1 million and net losses of euro 0.6 million.

    The weighted average effective interest rate on European Capital's total investments in debt securities at 30 September 2007 was 12.2% versus 12.0% at 30 June 2007. At the same time, one portfolio company with loans totalling euro 29 million at face value was on non-accrual. This represented 2.0% of total loans at face value at 30 September 2007, compared to no loans at 30 September 2006. The fair value of this loan at 30 September 2007 was nil.

    "We have successfully increased European Capital's yields on debt investments during the third quarter of 2007 in response to the disruption of the credit markets. That has caused the average effective interest rate to increase by 50 basis points above the level at the end of the second quarter of 2007," said Ira Wagner, President of European Capital Financial Services Limited ("ECFS"). "European Capital's One Stop Buyouts(TM) have become even more important to sellers of companies in this uncertain financing environment and European Capital's ability to underwrite mezzanine tranches is in great demand from other private equity sponsors. In addition, we continue to make progress increasing our market coverage across Europe, and although our investment opportunities in the third quarter of 2007 declined from the second quarter of 2007, due to the decline in very large transactions, the mid-sized transaction market remains active, and our investment opportunities grew 55% over the third quarter of 2006."

    Since its inception in August 2005 up until 30 September 2007, European Capital has invested in 73 portfolio companies totalling euro 2.7 billion. European Capital has earned a 16% compounded annual return, including interest, dividends, fees and net gains, on realisations of senior debt, subordinated debt and equity investments, totalling euro 885 million of committed capital. These realisations represent 32% of all amounts committed by European Capital.

    "During the third quarter of 2007, European Capital's strong balance sheet and capital markets credibility allowed us to raise euro 150 million of financing, during a time when access to capital was closed to many financial institutions," said Tom McHale, Director, ECFS. "European Capital has zero percent of its portfolio in CMBS investments. Only 1.3% of our portfolio assets are in CDOs, which have produced a 21% IRR since our initial investments. It has no sub-prime mortgages. Equity investments in portfolio companies have produced an excellent 25% IRR since inception. European  Capital is very well capitalised and has 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 its 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 third quarter of 2007, Houlihan Lokey reviewed valuations of 16 portfolio company investments having an aggregate euro 594 million in fair value as of the period end. Since European Capital's May 2007 IPO, Houlihan Lokey has reviewed 28 portfolio companies totalling euro 949 million in fair value as of their respective valuation dates. 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.

    QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS

    European Capital has made available its Quarterly Consolidated Financial Statements for the nine months ended 30 September 2007. A copy may be downloaded from www.EuropeanCapital.com.

    Financial highlights for the quarter are as follows:

@@start.t1@@                                              EUROPEAN CAPITAL LIMITED
                                          CONSOLIDATED BALANCE SHEETS
                              As of 30 September 2007 and 31 December 2006
                                  (in thousands, except per share data)
                            (all amounts in euros unless otherwise noted)
                                                        30 September  31 December    Q3 2007 Versus
                                                              2007              2006                 Q4 2006
                                                        (unaudited)
                                                                                                      euro            %
      Assets
      Investments at fair value (Cost
        basis of euro 1,909,041
        and euro 1,072,938
        respectively)                              1,900,947    1,077,709      823,238        76%
      Cash and cash equivalents                 20,571         85,932      (65,361)    -76%
      Restricted cash                                 17,404         12,913         4,491        35%
      Other                                                 11,616         18,031        (6,415)    -36%
         Total assets                              1,950,538    1,194,585      755,953        63%
      Liabilities and Shareholders' Equity
      Debt (maturing within one year
         euro 106,951 and
         euro-nil respectively)                 877,246        422,414      454,832      108%
      Due to European Capital
        Financial Services (Guernsey)
        Limited                                              3,776          3,568            208         6%
      Accrued dividends payable                 14,087         21,750        (7,663)    -35%
      Other                                                  2,863          2,699            164         6%
         Total liabilities                         897,972        450,431      447,541        99%
      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                                        22,966          1,261        21,705         NM
         Net foreign currency
          (depreciation) appreciation        (14,609)            332      (14,941)        NM
         Net appreciation of investments    13,838          5,638         8,200      145%
         Other reserve                                         -            (773)          773      100%
            Total shareholders' equity    1,052,566        744,154      308,412        41%
            Total liabilities and
              shareholders' equity            1,950,538    1,194,585      755,953        63%
      NM = Not Meaningful@@end@@

@@start.t2@@                                            EUROPEAN CAPITAL LIMITED
                                 CONSOLIDATED STATEMENTS OF OPERATIONS
                    Three and Nine Months Ended 30 September 2007 and 2006
                                 (in thousands, except per share data)
                                                      (unaudited)
                          (all amounts in euros unless otherwise noted)
                                                              Three Months Ended  Three Months Ended
                                                                    30            30          30 September
                                                                September September  2007 Versus 2006
                                                                      2007        2006
                                                                                                      euro            %
      OPERATING INCOME:
      Interest and dividend income                  45,294    20,361      24,933      122%
      Fee and other income                                 1,076      7,959      (6,883)    -86%
         Total operating income                         46,370    28,320      18,050        64%
      OPERATING EXPENSES:
      Interest                                                  12,066      5,103        6,963      136%
      Management fee and reimbursed expenses    8,945      7,971          974        12%
      Incentive fee                                                  -            -              -         NM
      General and administrative                        2,213         898        1,315      146%
         Total operating expenses                      23,224    13,972        9,252        66%
      OPERATING INCOME BEFORE INCOME TAXES      23,146    14,348        8,798        61%
      Provision for income taxes                          (12)        (69)          57        83%
      NET OPERATING INCOME                                23,134    14,279        8,855        62%
      Net foreign currency (losses) gains          (623)    1,406      (2,029)  -144%
      Net gains on investments                                 -            -              -         NM
      TOTAL NET REALISED EARNINGS                    22,511    15,685        6,826        44%
      Net foreign currency (depreciation)
        appreciation                                         (16,065)        237    (16,302)        NM
      Net (depreciation) appreciation of
        investments                                            (3,653)    1,158      (4,811)  -415%
      INCREASE IN NET ASSETS RESULTING FROM
        OPERATIONS ("EARNINGS")                          2,793    17,080    (14,287)    -84%
      NET OPERATING INCOME PER SHARE:
         Basic & Diluted                                        0.21        0.19         0.02        11%
      NET REALISED EARNINGS PER SHARE:
         Basic & Diluted                                        0.21        0.21         0.00         0%
      NET EARNINGS PER SHARE:
         Basic & Diluted                                        0.03        0.23        (0.20)    -87%
      WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
         Basic & Diluted                                  108,364    75,000      33,364        44%
      DIVIDENDS DECLARED PER SHARE                      0.13        0.00         0.13         NM
                                                                  Nine Months Ended Nine Months Ended
                                                                        30          30      30 September 2007
                                                                  September September    Versus 2006
                                                                        2007        2006
                                                                                                        euro        %
      OPERATING INCOME:
      Interest and dividend income                  119,256    39,904    79,352      199%
      Fee and other income                                  6,103      8,979    (2,876)    -32%
         Total operating income                         125,359    48,883    76,476      156%
      OPERATING EXPENSES:
      Interest                                                    27,270      8,999    18,271      203%
      Management fee and reimbursed expenses    29,684    21,041      8,643        41%
      Incentive fee                                              5,115            -      5,115         NM
      General and administrative                         5,573      2,351      3,222      137%
         Total operating expenses                        67,642    32,391    35,251      109%
      OPERATING INCOME BEFORE INCOME TAXES        57,717    16,492    41,225      250%
      Provision for income taxes                          (191)        (69)      (122)  -177%
      NET OPERATING INCOME                                 57,526    16,423    41,103      250%
      Net foreign currency gains (losses)          2,531        (735)    3,266      444%
      Net gains on investments                            2,321         202      2,119         NM
      TOTAL NET REALISED EARNINGS                      62,378    15,890    46,488      293%
      Net foreign currency (depreciation)        (14,941)      (745) (14,196)        NM
      Net appreciation of investments                 8,200      2,362      5,838      247%
      INCREASE IN NET ASSETS RESULTING FROM
        OPERATIONS ("EARNINGS")                          55,637    17,507    38,130      218%
      NET OPERATING INCOME PER SHARE:
         Basic & Diluted                                         0.62        0.22        0.40      182%
      NET REALISED EARNINGS PER SHARE:
         Basic & Diluted                                         0.67        0.21        0.46      219%
      NET EARNINGS PER SHARE:
         Basic & Diluted                                         0.60        0.23        0.37      161%
      WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
         Basic & Diluted                                      92,599    75,000    17,599        23%
      DIVIDENDS DECLARED PER SHARE                        0.44        0.00        0.44         NM
      NM = Not Meaningful@@end@@

@@start.t3@@                                          EUROPEAN CAPITAL LIMITED
                                        OTHER FINANCIAL INFORMATION
                    Three Months Ended 30 September 2007, 31 December 2006
                                            and 30 September 2006
                                 (in thousands, except per share data)
                                                      (unaudited)
                         (all amounts in euros unless otherwise noted)
                                                        Q3              Q4        Q3 2007 Versus Q4 2006
                                                        2007          2006            euro                %
      New Investments:
         Senior Debt                         155,670      185,650        (29,980)          -16%
         Subordinated Debt                212,785      129,740         83,045              64%
         Preferred Equity                  13,441        63,795        (50,354)          -79%
         Common Equity                        30,181        14,031         16,150            115%
         CDO/CLO Investments              16,973                -         16,973                NM
            Total                                429,050      393,216         35,834                9%
      European Capital
        Sponsored Buyouts                 123,040      243,367      (120,327)          -49%
      Financing for Sponsored
        Buyouts                                 184,105      148,091         36,014              24%
      Direct Investments                  95,713                -         95,713                NM
      Add-on Financing for
        Acquisitions                            9,219         1,758          7,461            424%
      Add-on Financing for
        Recapitalisations                          -                -                 -                NM
      CDO/CLO Investments                 16,973                -         16,973                NM
            Total                                429,050      393,216         35,834                9%
      Realisations:
         Senior Loan Syndications      42,048      122,702        (80,654)          -66%
         Principal Prepayments          76,916        30,306         46,610            154%
         Payment of Accrued
          Payment-in-kind Interest
          and Dividends and Original
          Issue Discount                      4,109                -          4,109                NM
         Sale of Equity Investments          -         1,357         (1,357)         -100%
            Total                                123,073      154,365        (31,292)          -20%
      Appreciation, Depreciation,
        Gains and Losses:
         Gross Gains                                  -         1,345         (1,345)         -100%
         Gross Losses                                 -                -                 -                NM
            Net Gains                                  -         1,345         (1,345)         -100%
         Gross Appreciation at
          7, 2 and 2 Portfolio
          Companies                            31,191         3,678         27,513            748%
         Gross Depreciation at
          5, 1 and 1 Portfolio
          Companies                          (34,844)              -        (34,844)              NM
            Current Portfolio
              Net Appreciation              (3,653)        3,678         (7,331)         -199%
          Net Depreciation From the
            Recognition of Net Gains          -          (402)            402            100%
          Net (Depreciation)
            Appreciation for
            Foreign Currency
            Translation                      (16,065)        1,819        (17,884)         -983%
          Net (Losses) Gains for
            Foreign Currency
            Translation                          (623)         (829)            206              25%
              Net Gains, Losses,
                Appreciation and
                Depreciation                 (20,341)        5,611        (25,952)         -463%
      Other Financial Data:
         Net Asset Value per Share        9.71          9.92          (0.21)            -2%
         Market Capitalisation         938,432              NA                NM                NM
         Total Enterprise Value    1,795,107              NA                NM                NM
      Credit Quality:
         Weighted Average Effective
          Interest Rate on Debt
          Investments                          12.2%         12.5%
         Loans on Non-Accrual
          at Face                                29,000                -         29,000            100%
         Loans on Non-Accrual
          at Fair Value                              -                -                 -                NM
         Past Due Loans at Face                 -                -                 -                NM
         Past Due and Non-Accrual
          Loans at Face as a
          Percentage of Total
          Loans                                      2.0%          0.0%
         Past Due and Non-Accrual
          Loans at Fair Value
          as a Percentage of
          Total Loans                            0.0%          0.0%
         Number of Portfolio Companies
          on Non-Accrual and Past Due        1                -
      Return on Equity:
         LTM Net Operating Income
          Return on Average
          Equity at Cost                        9.0%          7.9%
         LTM Realised Earnings
          Return on Average
          Equity at Cost                        9.6%          7.9%
         LTM Earnings Return
          on Average Equity                  9.3%          9.5%
         Current Quarter Net Operating
          Income Return on Average
          Equity at Cost Annualised      8.8%         10.1%
         Current Quarter Realised
          Earnings Return on Average
          Equity at Cost Annualised      8.6%         10.4%
         Current Quarter Earnings
          Return on Average Equity
          Annualised                              1.1%         13.7%
      Dividends:
         Dividend Coverage (Realised
          Earnings per Basic Share/
          Dividend per Share)              1.62x         1.48x
         Dividend Payout Ratio
          (Dividend per Share/
          Realised Earnings per
          Basic Share)                         0.62x         0.68x
      NM = Not Meaningful
      NA = Not Applicable
                                                                    Q3              Q3 2007 Versus Q3 2006
                                                                  2006                 euro                 %
      New Investments:
         Senior Debt                                    167,306            (11,636)          -7%
         Subordinated Debt                          161,481              51,304            32%
         Preferred Equity                            109,341            (95,900)         -88%
         Common Equity                                    5,719              24,462          428%
         CDO/CLO Investments                                 -              16,973              NM
            Total                                          443,847            (14,797)          -3%
         European Capital Sponsored
          Buyouts                                         259,002          (135,962)         -52%
         Financing for Sponsored Buyouts    154,021              30,084            20%
         Direct Investments                                  -              95,713              NM
         Add-on Financing for Acquisitions  30,824            (21,605)         -70%
         Add-on Financing for
          Recapitalisations                                  -                      -              NM
         CDO/CLO Investments                                 -              16,973              NM
            Total                                          443,847            (14,797)          -3%
      Realisations:
         Senior Loan Syndications                 62,391            (20,343)         -33%
         Principal Prepayments                        7,182              69,734          971%
         Payment of Accrued Payment-in-kind
          Interest and Dividends and
          Original
          Issue Discount                                        -                4,109              NM
         Sale of Equity Investments                1,206              (1,206)        -100%
            Total                                            70,779              52,294            74%
      Appreciation, Depreciation,
        Gains and Losses:
         Gross Gains                                              -                      -              NM
         Gross Losses                                            -                      -              NM
            Net Gains                                              -                      -              NM
         Gross Appreciation at 7, 2 and
          2 Portfolio Companies                      1,903              29,288              NM
         Gross Depreciation at 5, 1
          and 1 Portfolio Companies                 (745)          (34,099)            NM
              Current Portfolio Net
                Appreciation                                1,158              (4,811)        -415%
         Net Depreciation From the
          Recognition of Net Gains                        -                      -              NM
         Net (Depreciation) Appreciation
          for Foreign Currency
          Translation                                         237            (16,302)            NM
         Net (Losses) Gains for Foreign
          Currency Translation                        1,406              (2,029)        -144%
         Net Gains, Losses, Appreciation
          and Depreciation                              2,801            (23,142)        -826%
      Other Financial Data:
         Net Asset Value per Share                  6.77                 2.94            43%
         Market Capitalisation                            NA                    NM              NM
         Total Enterprise Value                          NA                    NM              NM
      Credit Quality:
         Weighted Average Effective
          Interest Rate on Debt
          Investments                                      11.6%
         Loans on Non-Accrual at Face                  -              29,000              NM
         Loans on Non-Accrual at
          Fair Value                                              -                      -              NM
         Past Due Loans at Face                            -                      -              NM
         Past Due and Non-Accrual Loans
          at Face as a Percentage of
          Total Loans                                        0.0%
         Past Due and Non-Accrual Loans
          at Fair Value as a Percentage
          of Total Loans                                  0.0%
         Number of Portfolio Companies
          on Non-Accrual and Past Due                  -
      Return on Equity:
         LTM Net Operating Income Return
          on Average Equity at Cost                 2.4%
         LTM Realised Earnings Return on
          Average Equity at Cost                      2.5%
         LTM Earnings Return on Average
          Equity                                                2.8%
         Current Quarter Net Operating
          Income Return on Average
          Equity at Cost Annualised                13.0%
         Current Quarter Realised
          Earnings Return on Average
          Equity at Cost Annualised                14.3%
         Current Quarter Earnings Return
          on Average Equity Annualised          15.6%
      Dividends:
         Dividend Coverage (Realised
          Earnings per Basic Share/
          Dividend per Share)                              NM
         Dividend Payout Ratio (Dividend
          per Share/Realised Earnings
          per Basic Share)                                  NM
      NM = Not Meaningful
      NA = Not Applicable@@end@@

@@start.t4@@                                          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)      16.3%          13.5%            17.0%          14.8%
      Internal Rate of Return
        - Equity Investments
        only(2)(8)(10)                    38.3%          21.3%            29.4%          24.5%
      Original Investments
        and Commitments(8)          237,612    1,209,653      1,297,377    2,744,642
      Total Exits and
        Prepayments of Original
        Investments(8)                  86,151        526,263         300,711        913,125
      Total Interest,
        Dividends and Fees
        Collected(8)                      30,482         79,071          23,988        133,541
      Total Net Gains on
        Investments                            202          3,666                  -          3,868
      Current Cost of
        Investments                      163,475        721,193      1,024,371    1,909,041
      Current Fair Value
        of Investments                 174,798        705,294      1,020,855    1,900,947
      Net Appreciation
        (Depreciation)                  11,347         -5,681            7,892         13,558
      Non-Accruing Loans
        at Face                                      -         29,000                  -         29,000
      Non-Accruing Loans at
        Fair Value                                 -                 -                  -                 -
      Equity Interest at
        Fair Value                         29,895        226,667         184,788        441,350
      Debt to EBITDA(3)(4)                5.1              6.3                7.4              6.8
      Interest Coverage(3)                3.5              2.8                4.1              3.6
      Debt Service
        Coverage(3)                            2.3              2.2                3.4              2.8
      Average Age of
        Companies                        88 years      93 years        37 years      63 years
      Ownership Percentage            11.2%          31.2%            19.3%          23.1%
      Average Sales(5)                659,700        442,249         267,310        369,549
      Average EBITDA(6)                87,704         62,208          46,164         56,058
      Average EBITDA
        margin(6)                            15.5%          14.7%            17.1%          15.7%
      Total Sales(5)                4,554,897  15,895,962    13,660,229  34,111,088
      Total EBITDA(6)                 706,051    2,333,138      2,329,007    5,368,196
      % of Senior Loans(7)                10%              23%                38%              30%
      % of Loans with Lien(7)         100%            100%              100%            100%
      (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 forecast follows. For more information, please visit our website at www.EuropeanCapital.com or call our Investor Relations Department at +44-(0)-20-7539-7100.

@@start.t5@@                      EUROPEAN CAPITAL'S DIVIDEND HISTORY POST MAY 2007 IPO
                         (all amounts in euros unless otherwise noted)
                                                                        % Change of
                                                                      Dividend Over
            Year and Quarter            Dividend        Prior Period            Total
      2007                                        0.37                    N/A                  0.37
      Q4 Guidance                            0.14
      Q3                                          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 Wednesday 7 November 2007 at 14:30 GMT (9:30 EST). The dial in number will be +44-(0)-129-648-0100. Callers within the United States should dial +1-866-804-8688. The access code for callers is 814911.

    Point your browser to www.EuropeanCapital.com and click on the Q3 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 7 November on our website www.EuropeanCapital.com.

    AUDIO ONLY PRESENTATION AVAILABLE AFTER THE SHAREHOLDER CALL:

    There will be a phone recording available from 23:59 GMT Wednesday 7 November until 23:59 GMT Wednesday 21 November. If you are interested in hearing the recording of the presentation, please dial +44-(0)-800-032-9687  or +44-(0)-207-136-9233. The access code for callers is 18522018.

    For further information or questions, please do not hesitate to call our Investor Relations Department at +44-(0)-20-7539-7100.

    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 2.3 billion (US$3.3 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 Jean Eichenlaub at +33-(0)1-40-68-06-66 in Paris, Simon Henderson or Nathalie Faure Beaulieu at +44-(0)20-7539-7000 in London, 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. (Nasdaq: ACAS), with US$19 billion in capital resources under management, is an affiliate of European Capital and a member of the S&P 500. It is the largest U.S. publicly traded private equity firm 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, recapitalisations and securitisations. 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.

      Web site: http://www.EuropeanCapital.com
                      http://www.americancapital.com

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

Contact:
John Erickson, Dir., European Capital Financial Services, Guernsey,
+1-301-951-6122, or Tom McHale, Dir., European Capital Financial
Services, +1-301-951-6122, or Justin Cressall, Equity Capital
Markets, American Capital Strategies Ltd., +1-301-951-6122



Weitere Meldungen: European Capital

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