Allied Capital to Hold Annual Meeting of Stockholders.

WASHINGTON -- Allied Capital Corporation (NYSE:ALD) will host its 2008 Annual Meeting of Stockholders on April 25, 2008, 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 11, 2008, 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 and will be available through May 9, 2008. For complete information about the webcast, please visit our web site or call Allied Capital Investor Relations at [phone].

About Allied Capital

Allied Capital 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 is celebrating 50 years of investing in and supporting the U.S. entrepreneurial economy.

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 December 31, 2007, the company's private finance portfolio included investments in 120 companies that generate aggregate revenues of over $13 billion and employ more than 95,000 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].