Allied Capital Completes the Sale of its Majority Equity Interest in Mercury Air Centers to Macquarie Infrastructure Company; Realizes $259 Million Gain on Investment.

WASHINGTON -- Allied Capital Corporation (NYSE:ALD) announced today that it has completed the sale of its majority equity interest in Mercury Air Centers, Inc. to Macquarie Infrastructure Company LLC (NYSE:MIC). Allied Capital announced on April 19, 2007 the signing of a definitive agreement to sell Mercury.

Mercury was sold for an enterprise value of $452 million, subject to post-closing adjustments. Allied Capital realized a gain on its equity investment of approximately $259 million, subject to post-closing adjustments. Approximately $11 million of Allied Capital's proceeds from the sale remain subject to certain holdback provisions. In addition, Allied Capital was repaid approximately $51 million of subordinated debt outstanding to Mercury at closing.

Harris Williams & Co. served as financial advisor to Mercury on the transaction.

About Allied Capital

Allied Capital Corporation 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 June 30, 2007, the Company's private finance portfolio included investments in 143 companies in a variety of industries. These companies currently generate aggregate revenues of over $12 billion and employ more than 85,000 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].

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 some of these factors are enumerated in Allied Capital's filings with the Securities and Exchange Commission.