Eurocastle Investment Limited and Subsidiaries: Financial Results for the Three Months Ended 31 March 2009

ST PETER PORT, Guernsey - Cross Reference: Financial Results for the Three Months Ended 31 March 2009 are Available at www.presseportal.de/pm/60662/?keygroup=dokument

Eurocastle Investment Limited today announced its financial results for the three months ended 31 March 2009. The Company and its subsidiaries (”the Group”) has Euro denominated shares which are currently listed on Euronext Amsterdam, under the symbol “ECT” and on the Frankfurt Stock Exchange, under the symbol “EUI1″. Eurocastle is managed by an affiliate of Fortress Investment Group LLC. For more information regarding Eurocastle and to be added to our email distribution list, please visit www.eurocastleinv.com.

Further details of Eurocastle’s liquidity position are included in its 2008 Annual Report. The Company announced today its intention to raise up to EUR130 million of additional funds through the issue of unlisted perpetual convertible securities. Certain terms of the offer are set out below.

Highlights Financial - FFO* was EUR12.3 million or EUR0.20 per share for the three months ended 31 March 2009 compared with EUR8.2 million or EUR0.13 per share and EUR22.6 million or EUR0.35 per share for the three months ended 31 December 2008 and 31 March 2008, respectively. - NAV per share of EUR10.60 as at 31 March 2009 comprising (EUR1.07) for the debt investment business and EUR11.67 for the commercial property portfolio (31 December 2008: EUR13.35 comprising (EUR0.27) for the debt investment business and EUR13.62 for the commercial property portfolio). Adjusted for the refinancing of the Mars portfolio, (which was completed on 27 May 2009) the NAV per share as at 31 March 2009 should be EUR8.45 per share. - Real estate NAV per share of EUR9.52 after the Mars Portfolio refinancing, reflecting a NOI yield on valuation of 5.8%. - Net loss after tax was EUR162.5 million for the three months ended 31 March 2009, compared with a loss of EUR263.8 million for the three months ended 31 December 2008 and a loss of EUR84.1 million for the three months ended 31 March 2008. The losses primarily relate to non-cash valuation adjustments to our portfolio. Business Review - Sold 8 properties during the first quarter 2009, for total sales proceeds of EUR100.1 million, compared to a carrying value of EUR104.1 million. The sales price equated to a 5.6% NOI yield. - During the first quarter 2009 the Group signed 81 commercial leases for approximately 31,000 square metres, including new leases for approximately 20,500 square metres. - Lettable space of 2.1 million square metres with occupancy of 85.7% as at 31 March 2009, unchanged from 31 December 2008 on a same store basis.

* FFO (Funds from Operations) is a non-IFRS financial measure used by our Group’s management to report the funds generated from operations for investment and the payment of dividends to shareholders. The FFO measure above is stated excluding realised gains and losses and related costs on asset sales and impairment charges.

Financing and Liquidity - As at 31 March 2009, the Company had a corporate cash balance of EUR14.3 million. - Following the repayment of EUR10 million of its corporate loan on 31 March 2009, the Group has two material short term recourse obligations totalling EUR145 million comprised as follows: - A EUR115 million corporate loan facility (with scheduled amortization payments prior to maturity on 30 June 2011), and - A guarantee obligation limited to EUR30 million in respect of an acquisition facility which matures on 30 September 2009. - The Company announced today its intention to raise EUR130 million of additional funds through the issue of unlisted perpetual convertible securities. The offer includes (without limitation) the following terms: - The convertible securities will be issued at par and will be entitled to a coupon of 20 per cent, payable annually in arrear. Interest may accrue and is capable of being paid in shares at the conversion price at the Company’s discretion. No interest will be paid out until the corporate loan facility has been paid off in full. - The convertible securities are perpetual but the Company may redeem the securities after 2 years at a premium of 20 per cent. -The securities will be convertible into shares at the holder’s option at a conversion price per Ordinary Share of EUR0.30. This represents a 6% premium to the volume weighted average trading price for the Company’s ordinary shares for the 10 trading days prior to the announcement of the potential capital raise on 30th April. - Under the terms of the issue and subject to applicable securities laws and regulations, the Company is proposing to invite qualifying shareholders, regardless of the number of Ordinary Shares they hold, to apply to subscribe for the convertible securities which will have a minimum denomination of EUR50,000. - The Company will reserve the right to decline applications in excess of any qualifying shareholder’s pro rata entitlement. In the event of over-subscription of the convertible securities, the Company will have the discretion to increase the principal amount of the securities offered and/or to scale back applications to a minimum subscription amount of EUR50,000. - The Company will reserve the right to allocate a portion of the convertible securities to third parties. - Certain funds managed by Fortress have conditionally undertaken to participate in the issue by subscribing approximately EUR15.4 million of the issue. - The Company intends to appoint Lazard & Co. Limited as financial adviser and placement agent in connection with this issue of convertible securities.

Conference Call

Management will conduct a conference call today, 28 May 2009, to review the Group’s financial results for the quarter ended 31 March 2009. The conference call is scheduled for 1:00 P.M. London time (8:00 A.M. New York time). All interested parties are welcome to participate on the live call. You can access the conference call by dialling +1-866-395-6634 (from within the U.S.) or +1-706-679-1521 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference “Eurocastle First Quarter Earnings Call.”

A webcast of the conference call will be available to the public on a listen-only basis at www.eurocastleinv.com. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast. A replay of the webcast will be available for three months following the call.

For those who are not available to listen to the live call, a replay will be available until 11:59 P.M. New York time on Thursday, 4 June 2009 by dialling +1-800-642-1687 (from within the U.S.) or +1-706-645-9291 (from outside of the U.S.); please reference access code “10790383.”

Enquiries: Mark Woodall Tel: +44-1481-723450

Source: Eurocastle Investment Limited

Enquiries: Mark Woodall, Tel: +44-1481-723450