Allied Capital Announces Filing Of Definitive Proxy Statement Related To Merger With Ares Capital Corporation; Urges Shareholders To Vote Their Shares

Allied Capital Corporation (NYSE: ALD) announced today that it has filed its definitive proxy statement for the Special Stockholders’ Meeting to be held on March 26, 2010. As described in the proxy statement, Allied Capital has set a record date of February 2, 2010 and a special meeting date of March 26, 2010. The joint proxy is being mailed to all Allied Capital shareholders on or about February 16, 2010 and is available on Allied Capital’s website ( www.alliedcapital.com).

Allied Capital shareholders are being asked to vote on the approval of the merger and the merger agreement with Ares Capital Corporation described in the joint proxy. Approval of the merger and the merger agreement requires the affirmative vote of two-thirds of Allied Capital's outstanding shares entitled to vote on the matter.

If approved, Allied Capital shareholders will become Ares Capital shareholders, with each Allied Capital shareholder receiving 0.325 shares of Ares Capital common stock for each share of Allied Capital stock owned. If the merger is completed, Allied Capital shareholders will own approximately 30% of the combined company.

After careful consideration, the board of directors of Allied Capital unanimously recommends that its shareholders vote "FOR" approval of the merger and the merger agreement. We believe Allied Capital shareholders will benefit from this merger through the ownership of a stronger combined company and the resumption of dividend payments. In addition, we believe the combined company will benefit from a well-capitalized balance sheet, access to capital for growth, an excellent middle market investment origination team and a proven asset management platform. Through this transaction we expect to create a company that is well-positioned for future growth in a market that presents attractive investment opportunities.

Each shareholder’s vote is extremely important. The majority – about 70% – of Allied Capital’s 180 million shares outstanding are held by individual investors. Every vote is crucial and we ask that each shareholder contribute to this important decision by voting their shares.

Allied Capital urges each shareholder to submit their proxy as promptly as possible. If you haven’t received proxy materials from your broker by February 28, 2010, please call your broker to request them.