Allied Capital Corporation II declares annual extra distribution of 48 cents per share.

WASHINGTON--(BUSINESS WIRE)--Dec. 15, 1995--The board of directors of Allied Capital Corporation II (ALII) Friday declared an annual extra distribution in the amount of 48 cents per share.

Including this extra distribution, Allied Capital Corporation II will distribute a total of $1.60 per share to shareholders for 1995, a 20% increase over 1994 total distributions of $1.34 per share. The distribution is payable as follows: -0-

               Amount:             48 cents per share
               Ex-Dividend Date:   Dec. 26, 1995
               Record Date:        Dec. 28, 1995
               Payment Date:       Jan. 31, 1996-0-

Shareholders should note that this extra distribution is taxable for 1995, although it will be paid in January 1996. -0-

Allied Capital Corporation II is a business development company, headquartered in Washington, D.C., traded on Nasdaq National Market, symbol ALII. The company makes long-term investments ranging in size from $1 million to $7 million in small, private growing businesses throughout the United States. A recent quote of the stock is $18 1/16. There are 6,944,857 total shares outstanding.

Allied Capital II pays a regular quarterly cash dividend of 31 cents per share and has paid an extra cash distribution each year since inception.

For 1995, Allied Capital II will distribute a total of $1.60 per share; for 1994, the company distributed a total of $1.34 per share to shareholders; for 1993, distributions totaled $1.22 per share; for 1992, distributions totaled $1.15 per share. Allied Capital II's stock is marginable.

For additional information or a copy of the company's annual report, please contact Allied Capital's Investor Relations Department at 202/973-6334 or fax to 202/659-2053.

CONTACT: Allied Capital, Washington

Suzanne Sparrow, 202/973-6334