Allied Capital Corp. announces third quarter results.

WASHINGTON--(BUSINESS WIRE)--Nov. 14, 1994--Allied Capital Corp. (NASDAQ:ALLC) announced third quarter results Monay.

For the nine months ended Sept. 30, 1994, the company reported a net increase in net assets resulting from operations of $3,338,000, or 52 cents per share, as compared to $1,252,000, or 18 cents per share, for the first nine months of 1993, an increase of 166%.

Investment income before net unrealized appreciation totalled $2,878,000 for the nine months ended Sept. 30, 1994, as compared to $2,176,000 for the comparative period in 1993, a 32% increase.

The company experienced a net decrease in net assets resulting from operations of $55,000, or 2 cents per share, for the three months ended Sept. 30, 1994 as compared to a net increase in net assets from operations of $2,156,000 or 34 cents per share, for the three months ended Sept. 30, 1993 primarily due to a decrease in the valuations of certain portfolio investments.

Allied Capital Corp. invested approximately $8.1 million during the three months ended Sept. 30, 1994, and received total repayments of approximately $3.6 million during the same period. The company has invested $24.7 million in new investments so far this year, and has received repayments of $10.6 million during the nine month period.

At Sept. 30, 1994, the company had $108.8 million in invested assets, which represents 79% of its total assets of $137 million. The company reported outstanding commitments of $10.9 million as of the end of the third quarter. The net asset value for Allied Capital Corp. increased to $9.43 per share as of Sept. 30, 1994 as compared to $7.27 per share at Sept. 30, 1993. -0-

                              (unaudited)             (unaudited)
(dollars in thousands)        3 mos. ended            9 mos ended
                                Sept. 30                Sept. 30
                            1994        1993        1994        1993

Investment income before
 net realized gain and net
 unrealized appreciation
 on investments            $518        $1,303      $854       $2,319

Net realized gain (loss)
on investments              236          (146)    2,024         (143)

Investment income before
 net unrealized appreciation
 (depreciation)             754         1,157     2,878        2,176

Net unrealized appreciation
 (depreciation) on
  investments              (809)          999       460         (924)

Net increase (decrease)
 in net assets resulting
 from operations            (55)        2,156     3,338        1,252
   Per Share             ($0.02)        $0.34     $0.52        $0.18

-0-

Allied Capital Corporation is a publicly traded venture capital company, headquartered in Washington, D.C. traded on Nasdaq NMS, symbol ALLC. The total shares outstanding are 6,143,250. Allied pays a regular quarterly distribution of $0.20 per share and an annual extra distribution which is determined at year end.

The extra distribution for 1994 will be $0.60 per share. Allied paid $1.35 per share in cash distribution for the year ended Dec. 31, 1993; $1.32 per share for the year ended Dec. 31, 1992; $1.30 per share for the year ended Dec. 31, 1991; $1.27 per share for the year ended Dec. 31, 1990; $1.15 per share for the year ended Dec. 31, 1989; and $1.02 per share for the year ended Dec. 31, 1988.

Allied has paid regular quarterly distributions and an annual extra distribution since 1964. All numbers have been adjusted for stock splits. Allied's stock is marginable. A recent quote of the stock was $13.50. For additional information or for a copy of the Company's annual report, please contact Allied Capital's Investor Relations Department at 202/331-1112 or fax to 202/659-2053.

CONTACT: Allied Capital, Washington

Suzanne Sparrow, 202/331-1112