Allied Capital Announces 2006 Equity Conference.

WASHINGTON -- Allied Capital Corporation (NYSE:ALD) will host an Equity Conference on Wednesday, June 7, 2006 at 9:00am, at the Willard InterContinental Hotel in Washington, DC. All current or prospective investors are invited to join Allied Capital's management team for a full-day program designed to continue to educate the investment community about our business model, investment strategies, and results.

If you would like to attend, please visit the conference website at www.alliedcapital.com/equityconference or call Investor Relations at [phone] to register by May 24.

About Allied Capital

Allied Capital Corporation, a leading business development company with total assets of more than $4 billion, has paid regular, quarterly cash dividends to shareholders since 1963. Allied Capital invests in the American entrepreneurial economy by providing capital to companies seeking a long-term financial partner and access to managerial resources often unavailable to smaller companies. Since its IPO in 1960, the Company has provided long-term debt and equity financing to thousands of middle market companies. In serving its shareholders, Allied Capital helps build middle market businesses and support American jobs. The Company's private finance portfolio includes investments in over 100 companies that generate aggregate revenues of more than $12 billion and employ more than 90,000 people.

Headquartered in Washington, DC, Allied Capital offers shareholders the opportunity to participate in the private equity industry through an investment in the Company's New York Stock Exchange-listed stock, which is traded under the symbol ALD. For more information, please visit www.alliedcapital.com, call Allied Capital investor relations toll-free at [phone], or e-mail us at [e-mail]. All media inquiries should be directed to Stan Collender of Qorvis Communications at [phone].