Allied Capital Corporation II increases quarterly dividend by 6.5% to 33 cents per share from 31 cents per share.

WASHINGTON--(BUSINESS WIRE)--Feb. 15, 1996--The board of directors of Allied Capital Corporation II (ALII) declared the company's first quarter dividend in the amount of 33 cents per share, which represents a 6.5% increase over the fourth quarter dividend paid on Dec. 29, 1995.

This is the fourth quarterly dividend increase the company has announced in as many quarters. The dividend paid in December reflected a 7% increase over the prior quarterly dividend and the dividend paid in September reflected a 7.4% increase over the prior quarterly dividend.

The company has paid regular quarterly cash dividends every quarter and an annual extra dividend every year since inception in 1989. The dividend is payable as follows: -0-

                Amount:                  33 cents per share
                Ex-Dividend Date:        March 13, 1996
                Record Date:             March 15, 1996
                Payment Date:            March 29, 1996-0-

Allied Capital Corporation II is a publicly traded business development company, headquartered in Washington, D.C., traded on Nasdaq National Market, symbol ALII. A recent quote of the stock is $17 1/8. There are 7,158,937 total shares outstanding.

Allied Capital II pays a regular quarterly cash dividend of 33 cents per share and has paid an extra cash distribution each year since inception. For 1995, Allied Capital II distributed a total of $1.60 per share to shareholders; for 1994, distributions totaled $1.34 per share; 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, 202/973-6326