European Capital Invests in Recapitalization of Audika Group

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

European Capital S.A. SICAR, a wholly-owned subsidiary of European
Capital Limited (LSE: ECAS) ("European Capital") announced today that
it, together with ECAS Sarl and ECAS II Sarl, has invested in the
holding company controlling Audika Group (Euronext Paris: ADI), the
leading French distributor of hearing aids with over 340 fully owned
centers. The investment was led by the Paris office of European
Capital Financial Services Limited ("European Capital Services"), the
sub-investment manager of European Capital. European Capital's
investment takes the form of senior and junior mezzanine debt and
common equity. European Capital has invested in the holding company
that controls 53.9% of the Audika listed entity. This holding company
is 55% owned by founding managers Alain and Jean-Claude Tonnard, 39%
by European Capital and 6% by another manager, Philippe Langzam.

"We are very happy to support the development of Audika, a leading
company in the fast growing market of hearing correction," said Jean
Eichenlaub, Managing Director of European Capital Services. "We
quickly assembled a specific financing package that provides optimal
support to Audika's founders and co-CEOs as they pursue compelling
expansion opportunities. This transaction supports the ambition of
Audika's founders and senior management to carry on the Group's long
term and international development and perpetuate its family
management spirit, backed by an active financial partner. "

"Through innovative marketing campaigns, Audika has achieved top
brand recognition among end-consumers, to whom it delivers
personalized, first-class products and hearing correction services,"
said Jacques Pancrazi, Director of European Capital Services. "In
addition, Audika's unique network organization produces unmatched
productivity and steady performance improvement. Audika's management
team has an outstanding track record of acquiring and integrating
independent centers. We are delighted to contribute and to support
the group in its ambitious international development plan."

"Driven by lengthening life expectancies and aging baby boomers
experiencing the failing of their auditory capabilities, the hearing
aid market benefits from steady growth and excellent visibility. In
addition, it remains a very fragmented market with many acquisition
opportunities," said Isabelle Carpentier, European Capital Services
Manager. "Continually improving technologies also contribute to
widening consumer acceptance and an increasing penetration rate among
hearing impaired persons."

Founded in 1977 and listed on the Paris stock exchange since 1998,
Audika is the leading French network of hearing correction centers,
increasing from 205 in 2001 to over 340 owned centers today.
Headquartered in Paris, Audika has nearly 600 employees. In 2006,
Audika generated sales and EBITDA of euro 79 million and euro 15
million respectively and targets revenues of euro 92 million in 2007.

"We are delighted to partner with European Capital for the next
step of our development," said Jean-Claude and Alain Tonnard, Audika
co-CEOs. "European Capital's international presence will be highly
valuable in support of our international expansion in the coming
years."

European Capital has invested euro 1.7 billion (US$2.4 billion) in
the last twelve months, euro 1.3 billion (US$1.8 billion) year to
date and euro 333 million (US$466 million) quarter to date. For more
information about European Capital's portfolio, go to
http://www.ECAS.com/our_portfolio/portfolio.html.

ABOUT EUROPEAN CAPITAL

European Capital is a publicly traded company for pan-European
equity, mezzanine and senior debt investments with capital resources
of approximately euro 2.3 billion (US$3.2 billion). 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 recapitalizations.

Companies interested in learning more about European Capital's
flexible financing should contact Jean Eichenlaub at
+33(0)1-4068-0666 in Paris, Nathalie Faure Beaulieu or Simon
Henderson at +44(0)20-7539-7000 in London, Robert von Finckenstein at
+49(0)69-7171-2970 in Frankfurt, or Luis Felipe Castellanos at
+(34)91-745-9963 in Madrid, or visit the website at
www.EuropeanCapital.com.

ABOUT AMERICAN CAPITAL

American Capital Strategies Ltd. (Nasdaq: ACAS) is an affiliate of
European Capital and the only alternative asset management company
that is a member of the S&P 500. With US$17 billion in assets under
management(1), including in externally managed funds, 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.

(1) Assets under management is an estimate of internally and externally
managed assets as of July 31, 2007 and does not include any fair
value adjustments subsequent to June 30, 2007.

This press release contains forward-looking statements. The
statements regarding expected results of European Capital and/or
American Capital are subject to various factors and uncertainties,
including the uncertainties associated with the timing of transaction
closings, changes in interest rates, availability of transactions,
changes in regional, national or international economic conditions,
or changes in the conditions of the industries in which European
Capital and/or American Capital has made investments.

This announcement includes statements that are, or may be deemed
to be, "forward-looking statements". These forward-looking statements
can be identified by the use of forward-looking terminology,
including the terms "believes", "estimates", "plans", "projects",
"anticipates", "expects", "intends"," may", "will", or "should" or,
in each case, their negative or other variations or comparable
terminology. These forward-looking statements include matters that
are not historical facts and include statements regarding European
Capital's intentions, beliefs or current expectations concerning,
among other things, European Capital's results of operations,
financial condition, liquidity, prospects, growth and strategies.

By their nature, forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances. A
number of factors could cause actual results and developments to
differ materially from those expressed or implied by the
forward-looking statements.

Forward-looking statements may and often do differ materially from
actual results. Any forward-looking statements in this announcement
reflect European Capital's view with respect to future events as at
the date of this announcement and are subject to risks relating to
future events and other risks, uncertainties and assumptions relating
to European Capital's operations, results of operations, growth
strategy and liquidity. European Capital undertakes no obligation
publicly to release the results of any revisions to any
forward-looking statements in this announcement that may occur due to
any change in its expectations or to reflect events or circumstances
after the date of this announcement.

Web site: http://www.EuropeanCapital.com
http://www.americancapital.com
http://www.ECAS.com/our_portfolio/portfolio.html

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

Contact:
Jean Eichenlaub, Managing Director, +33(0)140-68-0666, or Jacques
Pancrazi, Director, +33(0)140-68-0666, or Isabelle Carpentier,
Manager, +33(0)140-68-0666, or Marie Bal, Communication Manager,
+33(0)140-68-0666, all of European Capital Services