Allied Capital Invests $23.6 Million in MHF Logistical Solutions.

WASHINGTON -- Allied Capital Corporation (NYSE:ALD) announced today that it has made an investment of $23.6 million, comprised of senior debt and an equity co-investment, to support the acquisition of MHF Logistical Solutions by Blue Point Capital Partners. MHF is a leading, vertically integrated third-party logistics company serving the environmental waste market. It specializes in all aspects of the transportation of low-level radioactive waste, non-radioactive hazardous waste and non-hazardous waste, as well as project cargo and other special commodities. Blue Point's investment in MHF was facilitated by Bowditch-Pacific LLC, a group focused solely on the transportation and logistics space.

"We are excited to partner once again with Blue Point, which has worked closely with the management of MHF to put together this proprietary transaction," said Dan Russell, Managing Director of Allied Capital. "MHF is a market leader in its field, providing its customers with a complete transportation, packaging and technical solution to their waste disposal needs, while also improving project safety and lowering all-in costs."

"MHF continues to execute on its core business strategy of providing one-stop logistical solutions to its customers," said John Evanko,

founder and CEO of MHF. "Allied Capital came to this transaction as a true financial partner, with a flexible financing structure tailored to the specific needs of our business plan. Allied Capital's long-term investment horizon and understanding of our business will make them a valuable component of our future growth."

"We are pleased to have Allied Capital on our team again for this transaction," said Sean Ward, Partner of Blue Point. "With a shared strategic vision among all the stakeholders, management can focus on future growth and continue to build on MHF's leadership position in the market."

About Allied Capital

Allied Capital Corporation, a leading business development company with total assets of more than $3 billion, has paid regular, quarterly cash dividends to shareholders since 1963. Allied Capital invests in the American entrepreneurial economy by providing capital to companies seeking a long-term financial partner and access to managerial resources often unavailable to smaller companies. Since its IPO in 1960, the Company has provided long-term debt and equity financing to thousands of middle market companies. In serving its shareholders, Allied Capital helps build middle market businesses and support American jobs. The Company's private finance portfolio includes investments in over 100 companies that generate aggregate revenues of more than $10 billion and employ more than 80,000 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]. All media inquiries should be directed to Stan Collender of Financial Dynamics at [phone].

About MHF Logistical Solutions

Founded in 1994 by John Evanko, MHF has grown to become the leading asset-based third party logistics company serving the environmental markets. Management has built the business by providing the in-house skills, equipment, regulatory knowledge, industry expertise and financial capabilities to move highly regulated products and waste materials in the safest, most efficient and cost-effective manner for its customers. MHF, based in Cranberry, PA, has the largest and most comprehensive fleet of equipment in the industry and operates a network of five, fixed-base rail transload sites located in Massachusetts, Louisiana, New Jersey, Tennessee and Utah. For more information, please visit www.mhfls.com.

About Blue Point Capital Partners

Blue Point, with over $500 million in equity capital under management and offices in Charlotte, Cleveland, Seattle, and Shanghai, is one of the largest private equity firms in each of its resident markets. Blue Point focuses on investments in manufacturing, value-added distribution and service businesses that address industrial and consumer markets. MHF is Blue Point's initial investment under its Transportation and Logistics initiative, which was developed in partnership with Bowditch-Pacific, LLC. For more information, please visit www.bluepointcapital.com.

About Bowditch-Pacific LLC

Bowditch-Pacific is a private equity focused group that sources and executes on investments solely in logistics and transportation. Bowditch-Pacific considers a broad range of asset-intensive and non-asset based investment opportunities that offer growth potential through consolidation, enhances market position, supply chain efficiencies and financial restructuring. Bowditch-Pacific was formed in 2002 and is based in Seattle, Washington. For more information, please visit www.bowditch-pacific.com.

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 periodic filings with the Securities and Exchange Commission.