Allied Capital Announces Successful Syndication of $102 Million of Senior Debt Facilities For Portfolio Company Norwesco, Inc.

WASHINGTON -- Allied Capital Corporation (NYSE:ALD) announced today that it has successfully structured and syndicated $102 million of senior secured credit facilities for portfolio company Norwesco, Inc. Allied Capital acted as Sole Lead Arranger and Bookrunner for the transaction. The transaction recapitalized Norwesco's existing capital structure. The fully-subscribed syndication closed on March 28, 2008 on its original terms and pricing.

In connection with this recapitalization, Allied Capital was repaid $17.5 million of subordinated debt and received an equity distribution of $36.5 million, which included dividend income of approximately $7 million.

Norwesco, Inc. is a market-leading manufacturer of rotationally molded polyethylene storage tanks serving the agricultural, industrial and septic tank markets. Allied Capital and management acquired Norwesco in July 2005 in a management-led buyout.

About Allied Capital

Allied Capital 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 is celebrating 50 years of investing in and supporting the U.S. entrepreneurial economy.

Allied Capital invests long-term debt and equity capital to support 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 December 31, 2007, the Company's private finance portfolio included investments in 120 companies that currently generate aggregate revenues of over $13 billion and employ more than 95,000 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].

About Norwesco, Inc.

Founded in 1939 as Northwest Plastics and based in St. Bonifacius, MN, Norwesco is today the largest manufacturer in the U.S. of polyethylene storage tanks for agricultural and industrial markets. The company's above-ground tanks provide a critical storage function for farmers and industrial users, resulting in steady demand for its products. Norwesco's tanks are corrosion resistant and lightweight, range in size from 12 gallons to 15,000 gallons and are manufactured in a variety of shapes including vertical, elliptical, cone bottom and others. Norwesco's unique position as the leading rotational tank molder gives it a strong competitive advantage in its markets. For more information, please visit www.norwesco.com.

Forward-Looking Statements

The information contained in this press release includes 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 Allied Capital's filings with the Securities and Exchange Commission. This press release should be read in conjunction with the company's recent SEC filings.