December 16, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today that it has acquired eLynx, Ltd. eLynx is the leading provider of secure electronic data and document processing solutions to the mortgage banking industry. Utilizing a powerful transaction-processing engine, eLynx is capable of transforming paper intensive processes, such as closing mortgage loans, into a cost effective and more secure process through a proprietary, scalable, and Web-enabled infrastructure. eLynx has successfully leveraged its management team's deep experience and established relationships in the mortgage industry to market its technology and services to numerous lending institutions. Consequently, eLynx currently supplies its products to over 70 institutions, including seven of the top 10 U.S. mortgage lenders.

American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $4.8 billion. American Capital is an investor in and sponsor of management and employee buyouts, invests in private equity buyouts, and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.

Duff & Phelps, LLC initiated the transaction, assisted in negotiations, and served as the exclusive financial advisor to eLynx. Duff & Phelps is a national investment banking and financial advisory firm focused on providing merger and acquisition, private placement, valuation, financial opinion and restructuring services. Since 1932, Duff & Phelps has been committed to delivering independent advice and service of exceptional quality to a broad range of public and private companies.