American Capital Strategies Ltd. announced today it has invested in the One Stop Buyout(TM) of FreeConference.com Inc., a leading provider of free telephone conference calling services.

American Capital's investment takes the form of a senior term loan, senior subordinated debt, redeemable preferred equity, convertible preferred equity and common equity.

American Capital is also providing a revolving credit facility. Glickman Capital and Broadstream Capital Partners, both advisers to FreeConference.com, and FreeConference.com management are also investing in the equity. Post close, American Capital owns 84% of the Company on a fully diluted basis.

"With its WEBBY award-winning website at FreeConference.com, in addition to ConferenceUK.com in the United Kingdom and FreieKonferenz.com serving Germany, the Company holds a leading share of the global conference calling market.

The company's newest offering, GlobalConference.com, raises the bar in online corporate-level telephone conference call Web portals.

Customergrowth has been achieved largely by highly effective viral marketing, word-of- mouth and the Company's strong positioning on Internet search engines," said American Capital Vice President William J. Dyer. "FreeConference.com's website, where customers register to schedule and manage conference calls, is top ranked on Google's search engine.

The Company's online model tends to attract customers because they can go to the Company's secure website and immediately create conference calls without human interaction 24/7/365."