Allied Capital Invests $26.4 Million in Management-led Buyout of Tappan Wire & Cable.

WASHINGTON -- Allied Capital Corporation (NYSE:ALD) announced today that it has invested $26.4 million to support the management-led buyout of Tappan Wire & Cable, Inc. from the founding owner and a company ESOP. Allied Capital's investment took the form of senior secured unitranche debt and common equity. Senior management of Tappan also invested in the debt and equity of the company. The transaction closed in the 3rd quarter of 2007.

Founded in 1978, Tappan Wire & Cable is a manufacturer and distributor of low and medium voltage cables serving the communications, security, fire safety, computer networking and instrumentation markets. The company's high customer service levels, specialized product offering and quick-turn delivery times have given it a strong competitive advantage in an otherwise large and fragmented industry.

"This deal represented an opportunity to invest in a niche player in a fragmented industry run by an experienced management team with solid growth potential," said Paul Tanen, Managing Director of Allied Capital. "We look forward to working with management to realize on that growth through select acquisitions and new product expansion."

"We are pleased to have Allied Capital as our new financial partner," said Darren Krych, President of Tappan Wire & Cable. "Allied Capital brings a wealth of investing experience, as well as balance sheet strength and flexibility to our company, and we look forward to working together to continue building long-term value for all shareholders of Tappan."

About Allied Capital

Allied Capital Corporation (NYSE:ALD) 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].

About Tappan Wire & Cable, Inc.

Tappan is a U.S. manufacturer and distributor of low and medium voltage cables. These data cables are used in a variety of end-markets, including 1) residential and commercial security systems, 2) residential and commercial fire alarm systems, 3) residential and commercial video and CATV systems, 4) residential and commercial computer network lines and 5) instrumentation (i.e., automotive). Tappan has built a distinct competitive advantage in its markets through its US-based production and distribution facilities, which enable it to produce small batch runs, ensure the highest product quality and fulfill orders at a much greater speed than its larger competitors. Tappan is headquartered in Blauvelt, NY and employs approximately 174 full time people. For more information, please visit www.tappanwire.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 these factors are enumerated in the company's periodic filings with the Securities and Exchange Commission.