WASHINGTON--(BUSINESS WIRE)--Feb. 24, 2006--Allied Capital Corporation (NYSE:ALD) announced today that it has committed $99.2 million to finance the strategic acquisition of ChemPro, Inc. ChemPro will be merged with Redox Brands, a majority-owned portfolio company of Allied Capital, to form CR Brands, Inc. Allied Capital's acquisition financing took the form of senior and subordinated debt and common equity. CR Brands expects to refinance the senior debt and Redox's outstanding senior debt post-closing.

ChemPro is a leading consumer products company that manufactures and markets branded and private label heavy-duty household cleaning products. Its primary brands include Mean Green(R), Pine Power(R), and Magnum Power(R). ChemPro sells its products through the dollar store channel, as well as through mass and grocery channels. Redox Brands is a marketer of consumer branded products in the cleaning/detergent segment. Its primary brands are Biz(R) and Oxydol(R), which were acquired from Procter & Gamble in 2000. Redox sells its products primarily into the mass and grocery channels.

"The combination of ChemPro and Redox represents a major strategic opportunity for both companies," said John Shulman, Managing Director of Allied Capital. "From the opportunity to cross-sell products through their complementary channels, to the significant operational advantages from streamlining production, purchasing and distribution, the combination of these businesses makes enormous sense. Additionally, the strong combined skills of the management teams of both companies, led by Allen McIntyre of ChemPro and Rich Owen from Redox, create a team with significant consumer products experience to grow this company to the next level."

Mr. McIntyre has been named CEO of CR Brands and Mr. Owen has been named COO.

"With Allied Capital's long history of supporting the growth of entrepreneurial middle market companies, we believe we have the ideal partner with whom to continue to build out our consumer products platform," said Allen McIntyre. Rich Owen added, "Allied Capital has been a true value-added partner since its initial investment in Redox in 2001 and, with the addition of ChemPro, we are looking forward to building an even stronger competitor in the cleaning products segment."

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 90,000 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 (888) 818-5298, or e-mail us at ir@alliedcapital.com. All media inquiries should be directed to Stan Collender of Financial Dynamics at (202) 434-0601.

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.

CONTACT: Allied Capital Corporation
Dale Lynch, 202-973-6344
or
Media Contact:
Financial Dynamics
Stan Collender, 202-434-0601

SOURCE: Allied Capital Corporation