Allied Capital Invests $14.4 Million in C&K Market, Inc.

    Business Editors

    WASHINGTON--(BUSINESS WIRE)--March 14, 2005--Allied Capital Corporation (NYSE:ALD) announced that it has provided $14.4 million in senior secured subordinated notes to C&K Market, Inc. to refinance existing debt and for general corporate purposes. C&K is one of the largest privately owned grocery store chains in the Pacific Northwest, operating 51 grocery stores throughout Southern Oregon and Northern California, largely in rural communities.
    "Founded in 1956, C&K has steadily grown into one of the region's largest independent supermarket chains," said Tom Westbrook, Managing Director at Allied Capital. "The company benefits from an experienced management team, a dominant position in its markets, and a strong local brand image with a loyal customer base."
    "C&K Market continues to execute on its core business strategy of operating quality grocery stores in niche, underserved markets," said Rex Scoggins, Chief Financial Officer of C&K. "This refinancing strengthens our balance sheet and will assist us in executing our growth strategy going forward."

    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 with aggregate revenues of approximately $11 billion, supporting more than 100,000 jobs.
    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. For all media inquiries, please call (202) 331-1112.

    About C&K Market, Inc.

    Founded in 1956 and headquartered in Brookings, OR, C&K Market operates 51 independent grocery stores in Southern Oregon and Northern California under the names Ray's Food Place, Ray's Shop Smart and PriceLess Foods. The majority of its stores are located in rural communities with populations of fewer than 10,000. The stores are fully equipped with grocery, meat, dairy, produce and health & beauty aid departments and offer multiple brands at varying price points to its customers. For more information, please visit www.ckmarket.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 some of these factors are enumerated in Allied Capital's periodic filings with the Securities and Exchange Commission.

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

KEYWORD: CALIFORNIA OREGON DISTRICT OF COLUMBIA INDUSTRY KEYWORD: BANKING SUPERMARKETS RETAIL SOURCE: Allied Capital Corporation

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