ZyIMAGE used in legal and other areas to meet increasing demands for cost savings and flexibility

McLean, Virginia, January 15, 2005 - ZyLAB, an established market leader of document imaging and full-text retrieval software, today announced that American Capital Strategies Ltd. (Nasdaq:ACAS) has selected and implemented ZyIMAGE to further improve its document management and retrieval system.

American Capital is using ZyIMAGE's state-of-the-art system to meet increasing demands for cost savings and more search flexibility. As a result American Capital can better serve its customers and partners and have more flexibility to be able to address ever changing regulatory requirements more efficiently and more cost effectively.

ZyIMAGE provides American Capital with a strong search engine for locating large paper files. Importantly, it provides advanced full-text retrieval, including scalable fuzzy search, relevance ranking, advanced hit highlighting & hit navigation in imaging so that customers can instantly find the information they are seeking. ZyIMAGE also offers open storage technology - full XML framework for data storage of scanned paper files, e-mail and electronic files.

About American Capital Strategies Ltd.
American Capital is a publicly traded buyout and mezzanine fund (Nasdaq: ACAS) with capital resources of more than $4.8 billion. American Capital is an investor in and sponsor of management and employee buyouts; invests in private equity sponsored 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.

As of November 30, 2004, American Capital shareholders have enjoyed a total return of 299% since the Company's IPO -- an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $583 million in dividends and paid or declared $16.03 dividends per share since its August 1997 IPO at $15 per share.

About ZyLAB
Founded in 1983, ZyLAB is the leading provider of document imaging and paper filing software that helps Global 2000 companies and governments digitally file and manage millions of pages of paper and electronic documents. ZyLAB's comprehensive investigative capabilities, with its high quality search and retrieval features supporting over 200 languages, gives users the ability to organize and easily share all information online.

With over 7,000 installations worldwide and over 300,000 users, ZyLAB has a wide breadth of experience and knowledge across a variety of different industries and business applications. Our clients include such US Government organizations as the FBI, Department of Homeland Security, Department of the Treasury, Department of Justice, SEC, Department of Agriculture, Department of Commerce, IRS, Nuclear Regulatory Commission, Department of Labor, State Department, Amtrak's OIG, Office of Personnel Management, Department of Defense and all branches of the US military, as well as such well known companies as the New York Stock Exchange, Pepsico, Anheuser-Busch, and Walt Disney. The company has offices located in McLean, Virginia, and in the U.K., Germany, Spain, France, the Netherlands, Singapore and Australia to provide local service to its global client base. For more information visit www.zylab.com - workflow and e-discovery

Media Contact:
Evan Weisel
Welz & Weisel Communications
P: 703-323-6006
evan@w2comm.com