Allied Capital Announces Buyout of Worldwide Express.

WASHINGTON -- Allied Capital Corporation (NYSE:ALD) announced today that it has completed the buyout of Worldwide Express Inc., ("WWEX"), a leading reseller in the U.S. of DHL express and ground shipping services to the small and medium-sized business market, with a $15.7 million subordinated debt and equity investment. Management of WWEX also made a significant debt and equity investment alongside Allied Capital. Third party lenders provided all of the senior financing and the majority of the subordinated debt for the deal.

Worldwide Express is the largest master franchisor of DHL shipping services in the U.S., with approximately 150 franchisees serving over 60,000 small business customers nationwide. The reseller model is used by DHL to penetrate the highly fragmented small and medium-sized business (SMB) market with a direct, high-touch sales strategy. WWEX supports this strategy by providing its franchisees access to over 200 days of sales and marketing training per year, recruiting and operational support, in addition to localized service, customized billing solutions, and pricing discounts to its customers.

"Our investment in Worldwide Express represents Allied Capital's latest deal in the franchisor sector, where we have developed significant experience," said Bill Walton, Chairman and CEO of Allied Capital. "We found this opportunity particularly attractive because the management team of WWEX has built a market-leading company with strong business fundamentals and good growth prospects," added Mr. Walton.

"Worldwide Express employs a relationship-based sales model, which is unique in the small business package delivery market" said Tom Lauer, Managing Director of Allied Capital. "Through our partnership with David Kiger and his team, we look forward to continuing to grow the WWEX franchise system by increasing its penetration of existing markets, adding new franchise territories and focusing on its core service offerings," added Mr. Lauer.

"We selected Allied Capital to be our new financial partner because of their deep knowledge of the franchisor business model, their balance sheet strength and flexibility, and their long-term, relationship approach to investing," said David Kiger, CEO of WWEX. "We believe this partnership is a watershed event and will help drive our growth and create additional shareholder value for all stakeholders in our company," added Mr. Kiger.

Fidus Partners served as advisor to WWEX in the transaction.

About Allied Capital

Allied Capital Corporation (NYSE:ALD) is a leading business development company (BDC) in the U.S. that invests private debt and equity capital in middle market businesses nationwide. Founded in 1958 and operating as a public company since 1960, Allied Capital has paid consistent or increasing regular, quarterly cash dividends annually to shareholders since 1963.

Allied Capital provides long-term debt and equity capital for management and sponsor-led buyouts, and for recapitalizations, acquisitions and growth of middle market companies. Allied Capital's one-stop financing capabilities include first and second lien senior loans, unitranche debt, junior or subordinated debt and equity. Allied Capital seeks to invest in stable, less cyclical companies that produce significant free cash flow and high returns on invested capital. At March 31, 2007, the Company's private finance portfolio included investments in 144 companies in a variety of industries. These companies currently generate aggregate revenues of over $13 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 its New York Stock Exchange-listed stock. Allied Capital invests in the American entrepreneurial economy by providing long-term capital and access to managerial resources often unavailable to middle market companies. For more information, please visit www.alliedcapital.com, call Allied Capital investor relations toll-free at [phone], or e-mail us at [e-mail].

About Worldwide Express, Inc.

WWEX, headquartered in Dallas, TX, was founded in 1994 by David Kiger and Roger MacDonell as a reseller for Airborne Express. When Airborne was acquired by DHL in 2003, WWEX transitioned to selling DHL services. Today, WWEX is the largest reseller of DHL express and ground shipping services in the U.S. to the small and medium-sized business (SMB) market. The company utilizes a franchise-based business model and owns the rights to resell DHL services in every U.S. state. WWEX's 150 franchise partners are the direct point of contact for their over 60,000 SMB customers, handling all shipment scheduling, billing, and payment collections, while DHL handles all pickup and delivery operations. For more information, please visit www.wwex.com.

Forward-Looking Statements

The information contained in this press release contains forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, and these factors are enumerated in the company's periodic filings with the Securities and Exchange Commission.