WASHINGTON--(BUSINESS WIRE)--May 2, 2007--Allied Capital Corporation (NYSE:ALD) announced today that it has invested $64.6 million to acquire a majority interest in Old Orchard Brands, LLC, a manufacturer and marketer of ready-to-drink and frozen juice products. Allied Capital's investment took the form of senior debt, senior subordinated debt and a majority of the common equity of the company. Senior management of Old Orchard also made a substantial equity investment alongside Allied Capital.

"Allied Capital has significant experience investing in consumer products businesses," said Bill Walton, Chairman and CEO of Allied Capital. "This deal represents a great opportunity for us to invest in an established, innovative player in the highly fragmented juice industry that has significant potential to continue to grow its market share nationally," added Mr. Walton.

"In its 20+ years in the business, Old Orchard has built a reputation for developing innovative, consumer-relevant products, such as its Premium 100% fruit juice, Healthy Balance and Organics lines," said John Shulman, Managing Director of Allied Capital. "These products have proven appealing to both consumers and retailers for being healthy, flavorful and unique. We look forward to working with the management team of Old Orchard as they continue to develop new products and expand distribution," added Mr. Shulman.

"We are excited about the opportunities that this partnership with Allied Capital offers us," said Mark Saur, founder of Old Orchard. "Allied Capital's investment will enable us to expand our brands into new and promising segments and allow us to continue meeting the beverage needs of our retail partners and consumers," he added.

Old Orchard was represented in the transaction by William Blair & Co.

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 December 31, 2006, the Company's private finance portfolio included investments in 145 companies in a variety of industries. These companies currently generate aggregate revenues of over $13 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 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 (888) 818-5298, or e-mail us at ir@alliedcapital.com.

About Old Orchard Brands

Established in 1985, Old Orchard Brands is one of the fastest growing fruit juice brands in the United States. The company offers consumers 25 frozen concentrate flavors and 46 bottled varieties in a range of antioxidant-rich premium juices and blends, 100 percent fruit juices and blends, fruit juice cocktails and low-sugar/carbohydrate fruit juice cocktails. The company's product lines are distributed throughout the U.S. primarily in the grocery channel, as well as the mass, club and drug classes of trade. For more information, please visit www.oldorchard.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.

CONTACT: Investor Relations Inquiries:
Allied Capital Corporation
Dale Lynch, 202-721-6100
or
Media Inquiries:
Sitrick and Company, Inc.
Tom Becker, 212-573-6100

SOURCE: Allied Capital Corporation