Eurocastle Announces Refinancing of Corporate Loan Facility

ST PETER PORT, Guernsey - Eurocastle Investment Limited (Frankfurt Stock Exchange: EUI1 and Euronext Amsterdam: ECT) today announced that it has refinanced its EUR175 million corporate loan facility under which EUR115 million is outstanding today. Historically a 364 day facility, the restructured facility has been termed-out to mature on 30 June 2011. It contains scheduled amortisation payments requiring the facility to be paid down to EUR95 million by 30 June 2009, to EUR65 million by 31 December 2009, to EUR45 million by 30 June 2010 and to EUR20 million by 31 December 2010. The interest rate on the loan has increased from 2% to 8% over 3 Month Euribor and financial covenants have been substantially renegotiated to the benefit of Eurocastle. Eurocastle expects to try to raise additional capital in the near to medium term and, under the terms of the Facility, is required to raise at least EUR15.4 million in additional capital. It is expected that this would be raised primarily from existing shareholders and Eurocastle is pleased to confirm that it has already secured a conditional undertaking from a major shareholder in relation to EUR15.4 million in new capital. Further details of any capital raising plans are expected to be published in the coming weeks.

About Eurocastle

Eurocastle Investment Limited is an investment company which primarily owns and manages German commercial real estate assets. The Company is Euro denominated and is listed on Frankfurt Stock Exchange under the symbol “EUI1″ and on Euronext Amsterdam under the symbol “ECT.” Eurocastle is managed by an affiliate of Fortress Investment Group LLC, a global alternative asset manager with approximately $29.5 billion in assets under management as of December 31, 2008. For more information regarding Eurocastle Investment Limited and to be added to our email distribution list, please visit www.eurocastleinv.com.

Disclaimer

Nothing in this press release is intended as an offer to sell or a solicitation of an offer to buy any securities. An investment in Eurocastle Investment Limited (the “Company”) carries certain risks and past performance cannot be relied on as a guide to future performance. Any securities to be issued have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of such Act. There will be no public offer of securities in the United States.

Contact International Administration (Guernsey) Limited Company Administrator Attn: Mark Woodall Tel: +44-1481-723450

Source: Eurocastle Investment Limited

Contact: International Administration (Guernsey) Limited Company Administrator, Attn: Mark Woodall, Tel: +44-1481-723450