X0202 4 2007-12-17 0 0000003906 ALLIED CAPITAL CORP ALD 0001205621 BINDER SCOTT S 1919 PENNSYLVANIA AVENUE, NW 3RD FLOOR WASHINGTON DC 20006 0 1 0 0 Chief Valuation Officer Phantom Stock Units 2007-12-17 4 A 0 4140 22.2862 A Common Stock 4140 75437 D Phantom Stock Units acquired have a 1 for 1 conversion. The phantom stock units were awarded under the Allied Capital Corporation Deferred Compensation Plan II and are fully vested. On December 14, 2007 the Board of Directors of Allied Capital resolved to terminate the Company's defered compensation plans and to distribute the accounts to participants on March 18, 2008, the termination and distribution date. Securities adjusted for Non-Reportable Transactions. By: s/ Kelly A. Anderson attorney in fact For: Scott S. Binder 2007-12-19