Allied Capital Invests $16 Million in BI Incorporated

    Business Editors

    WASHINGTON--(BUSINESS WIRE)--Feb. 16, 2005--Allied Capital Corporation (NYSE:ALD) announced that it has provided $16 million in subordinated debt to support the recapitalization of BI Incorporated, a portfolio company of Kohlberg & Company. BI is a leading provider of electronic monitoring equipment and services, community-based supervision and treatment, and re-entry programs to the criminal justice and homeland security markets in the United States.
    "Maintaining the safety of our communities is a paramount concern of federal, state, and local correctional agencies, and BI has been providing innovative and affordable services to government customers for more than twenty years," said Jeri Harman, Managing Director of Allied Capital. "As a U.S. market leader, BI has the advantage of strong brand recognition, a diversified customer base, and an experienced management team. BI is a solid addition to Allied Capital's private finance portfolio."
    "We believe that Allied Capital will be a valuable financial partner to support our continuing growth over the next several years," said BI President and CEO George DeHuff. "Allied Capital's flexible financing, long-term investment perspective, and understanding of our business and current growth requirements made them the right choice for BI."

    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 American business 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 BI Incorporated

    Established in 1978, BI Incorporated works with more than 1,500 governmental agencies nationwide and in Puerto Rico, Guam and the Virgin Islands to provide offender monitoring technology, supervision services from a national monitoring center, community-based treatment services, and reentry programs to adult and juvenile offenders released on parole, probation or pretrial release. BI works closely with local public corrections officials to reduce recidivism, support public safety efforts, and strengthen the communities it serves. For more information, please visit www.bi.com.

    About Kohlberg & Company

    Kohlberg & Company is a leading U.S. private equity firm with offices in Mt. Kisco, NY and Palo Alto, CA. Founded in 1987, the firm has completed more than 35 buyout investments and over 60 add-on acquisitions, representing value in excess of $4.5 billion. For more information, please visit www.kohlberg.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 Dale Lynch, 202-973-6344

KEYWORD: DISTRICT OF COLUMBIA INDUSTRY KEYWORD: BANKING MARKETING AGREEMENTS SOURCE: Allied Capital Corporation

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