Allied Capital Provides Funds for Management-led Buyout of EarthColor

WASHINGTON, DC—November 20, 2006—Allied Capital Corporation (NYSE: ALD) announced that it has committed $210.5 million in the management-led buyout of EarthColor, Inc., (www.EarthColor.com) a leading commercial printer serving blue-chip customers in the pharmaceutical, telecommunications and financial services industries. The senior management of EarthColor made a significant equity investment in the company, acquiring a majority of the voting stock

Based in New York City, EarthColor is the largest competitor in the New York metropolitan market and one of the largest competitors in its other markets. The company operates a low-cost distributed print platform with production facilities in New York, New Jersey, Florida, and Texas, with additional prepress operations in Arizona.

Founded in 1982 by Robert Kashan, CEO, EarthColor specializes in high quality printed products that require quick turnaround times and significant customer service. The Company has developed organically and through acquisitions into a diversified, full-service provider of commercial printing solutions, focusing on a highly-diversified list of blue-chip customers in industries with less advertising cyclicality such as telecommunications, pharmaceuticals and financial services.

Kashan believes that EarthColor’s success is attributable to its emphasis on creating long-term partnerships with its customers; a low-cost and flexible production platform, and the ability to increase a customer’s speed to market, therefore generating higher returns per marketing dollar.

“Allied Capital’s decision to invest in EarthColor reflects our high-degree of confidence in Robert Kashan and his skilled management team,” said John Fruehwirth, Managing Director of Allied Capital. “Robert and his team have created a unique, market-leading business, positioning EarthColor as a significant printer with a low-cost operating platform, and the capacity and flexibility to handle large print jobs with short-lead times for their large blue-chip customers. We believe this combination will allow the company to continue building on its success as it pursues growth opportunities.”

“We have known the Allied Capital team for some time now and are pleased to have them as our new financial partner,” said Kashan. “They have worked hard to understand our business. Their financial strength and grasp of the business combine to make them a true value-added partner as we position our company for the next phase of growth – building a national platform to better serve our customers.”