Allied Capital to Hold Annual Meeting of Stockholders.

WASHINGTON -- Allied Capital Corporation (NYSE:ALD) will host its 2007 Annual Meeting of Stockholders on May 15, 2007, at 10:00 a.m. (EDT) at the Westin Embassy Row Hotel in Washington, DC. The Westin Embassy Row Hotel is located at 2100 Massachusetts Avenue, NW, Washington, DC. All stockholders are invited to attend the meeting.

An admission ticket or proof of ownership and photo identification will be required to gain access to the meeting. Admission tickets were attached to the proxy cards that were mailed to all registered stockholders who owned shares of the Company as of February 23, 2007, the record date. Individuals who own shares through a broker or other nominee should bring a legal proxy or a brokerage statement to the meeting in order to show proof of ownership.

All interested parties are welcome to attend the live webcast that will be hosted through our web site at www.alliedcapital.com. Please visit the web site to test your connection before the meeting begins. An archive of the webcast will be available on our web site at the conclusion of the meeting. For complete information about the webcast, please visit our web site or call Allied Capital Investor Relations at [phone].

About Allied Capital

Allied Capital Corporation, a leading business development company with total assets of $5 billion, has paid regular, quarterly cash dividends to shareholders since 1963. Since its IPO in 1960, Allied Capital has provided long-term debt and equity financing to thousands of middle market companies. 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. In serving its shareholders, Allied Capital helps build middle market businesses and support American jobs. At March 31, 2007, the company's private finance portfolio included investments in 144 companies that generate aggregate revenues of over $13 billion and employ more than 90,000 people.

Allied Capital provides flexible, competitive debt and equity capital for management and sponsor-led buyouts, recapitalizations, acquisitions and growth of middle market companies. Allied Capital's seamless, one-stop financing capabilities include first and second lien senior loans, unitranche debt, junior or mezzanine debt and equity.

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].