American Capital Invests $108 Million in Buyout of FutureLogic

Press Release:

American Capital Invests $108 Million in Buyout of FutureLogic

Press Release
News Article February 2005

BETHESDA, Md., Feb. 25 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. (NASDAQ:ACAS) announced today it has invested $108 million in the buyout of FutureLogic Inc., a leading designer and developer of customized small format embedded thermal printing solutions. American Capital has been a minority investor in FutureLogic since December 2002. American Capital's new investment takes the form of senior term loans, senior and junior subordinated debt and common equity. American Capital is rolling over its existing common equity and warrants and is also providing a revolving credit facility. FutureLogic management is rolling over its common equity. American Capital now owns approximately 64% of FutureLogic on a fully diluted basis.

"Since our initial investment in 2002, FutureLogic has shown impressive growth and performed ahead of expectations," said American Capital COO Ira Wagner. "Our buyout of FutureLogic demonstrates our firm commitment to growing our portfolio companies; building a long term relationship with management teams and assisting them in creating value; and finally, our capability to underwrite and fund the entire capital structure of a buyout."

American Capital invested approximately $2 billion in 2004, approximately $750 million in the fourth quarter of 2004 and has invested approximately $300 million year to date. For more information about American Capital's portfolio, go to http://www.americancapital.com/our_portfolio/our_portfolio.cfm.

"FutureLogic is the leading developer and provider of thermal printers to the robust, recession resistant gaming industry, serving virtually every gaming machine manufacturer as the primary supplier. It has captured a significant share of the North American gaming market through coordinated research and development efforts, customized products, deep customer relationships and by leveraging its significant barriers to entry," said American Capital Principal Aseem Giri. "We're looking forward to strengthening our partnership with the excellent management team, which has made strong progress in diversifying its customer base, expanding within the gaming market and entering new niche markets, including medical, voting, parking and produce labeling devices. With the leading position in the North American gaming market and a newly opened London office, we believe FutureLogic is well positioned to benefit from the substantial growth in the North American and international gaming markets and emerging worldwide opportunities in targeted niche markets."

Founded in 1983, Glendale, CA-based FutureLogic is the leading supplier for thermal printers found in cashless slot machines. Thermal printing is the accepted technology for transaction-based receipt printing, such as a voucher for a slot machine, a bar code label used for tracking purposes and pay-at- the-pump gasoline purchases. Customers include International Gaming Technology, Alliance Gaming Corp., WMS Industries Inc., Atronic Americas LLC, Cardinal Health Inc., Aristocrat Technologies, Konami Gaming Inc., Advanced Electronic Systems Inc., Multimedia Games Inc. and Spielo. The Company has four manufacturing, distribution and sales facilities located in Arizona, Nevada, Ohio and London and employs over 100.

"Over the last few years, American Capital has proven to be a supportive partner of FutureLogic, understanding and respecting our business, backing our vision for growth and providing the appropriate financial and operational resources for us to move forward," said FutureLogic President Anthony DiMarco. "We look forward to working with American Capital in the years ahead as FutureLogic continues to provide innovative, customized products to the North American and international gaming markets, as well as other niche markets."

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