American Capital Access Holdings Limited Enters into Definitive Agreement with Bear Stearns Merchant Banking for $120 Million of Additional Equity Capital and Receives $28 Million of New Capital from Existing Investors

Business Wire, July 22, 2004

NEW YORK -- American Capital Access Holdings Limited ("ACA Holdings") announced today that it has entered into a definitive Stock Purchase Agreement under which Bear Stearns Merchant Banking, the dedicated private equity arm of Bear Stearns & Co. Inc., will invest up to $120 million of equity capital in ACA Holdings. The private placement is expected to close during the third quarter, subject only to certain regulatory approvals, rating agency confirmations and other customary conditions. ACA Holdings will contribute substantially all of the net proceeds to the surplus of ACA Financial Guaranty Insurance Company ("ACA"). ACA Holdings also confirmed that, since June 2004, existing institutional stockholders had contributed approximately $28 million of new equity capital. The stockholders included, Stephens Group, Inc., Third Avenue Trust, Chestnut Hill ACA and FW ACA Investors, L.P. Upon closing of the Bear Stearns Merchant Banking investment, ACA's aggregate statutory capital will increase to over $300 million.

Alan S. Roseman, CEO of ACA Holdings, stated "The agreement with Bear Stearns Merchant Banking and the new investment by our existing institutional shareholders signals the imminent completion of our capital plan, which is directed at fully satisfying Standard & Poor's capital requirements for ACA's "A" financial strength rating. With over $300 million of paid-in statutory capital, ACA will have increased its qualified statutory capital by over 75% since December 31, 2003, providing a long-lasting capital base to sustain ACA's "A" rating indefinitely. ACA is extremely gratified that Bear Stearns Merchant Banking has agreed to join its investor group and become its largest shareholder. Their institutional knowledge and expertise will decidedly strengthen ACA's market position and strategic focus."

ACA Holdings is a diversified specialty finance company, participating in the municipal finance and structured finance markets through its operating subsidiaries, including ACA, a financial guaranty insurance company. More information about ACA Holdings can be found at www.aca.com.

Bear Stearns Merchant Banking, the dedicated private equity arm of Bear Stearns & Co. Inc. (NYSE: BSC), invests private equity capital in compelling leverage buyouts, recapitalizations and growth capital opportunities alongside superior management teams. More information about Bear Stearns Merchant Banking can be found at www.bsmb.com.

Banc of America Securities LLC and J.P. Morgan Securities, Inc. are acting as financial advisors to ACA Holdings.

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