Eurocastle Press Release 31 December 2008 Summary FINAL

ST. PETER PORT, Guernsey - Eurocastle Investment Limited (Frankfurt Stock Exchange: EUI1 and Euronext Amsterdam: ECT) today announced its financial results for the year ended 31 December 2008. For more information regarding Eurocastle, its 2008 Annual Report and to be added to our email distribution list, please visit www.eurocastleinv.com.

Further details of Eurocastle’s liquidity and its capital raising considerations are included in its 2008 Annual Report.

Highlights

Financial

- FFO* was EUR57.1 million or EUR0.91 per share for the year ended 31 December 2008 compared with EUR186.3 million or EUR2.92 per share for the year ended 31 December 2007. - NAV per share of EUR13.35 as at 31 December 2008 comprising of (EUR0.27) for the debt investment business and EUR13.62 for the commercial property portfolio (31 December 2007: EUR23.05 comprising EUR2.11 for the debt investment business and EUR20.94 for the commercial property portfolio). - Net loss after tax was EUR454.1 million for the year ended 31 December 2008, compared with a profit of EUR134.9 million for the year ended 31 December 2007. The losses primarily relate to non-cash valuation adjustments to our portfolio.

Business Review

- Sold 15 properties during the year, for total sales proceeds of EUR461 million, recognising a gain on book cost, net of all transaction costs of EUR4.7 million. - During the year the Group signed 658 commercial leases for approximately 310,000 square metres, including new leases for approximately 102,000 square metres. - Lettable space of 2.1 million square metres with occupancy of 85.8% as at 31 December 2008, compared to 84.3% last year on a same store basis.

Financing and Liquidity

- In 2008, the Group repaid, extended, or refinanced over EUR1.3 billion of debt. - Since year end, the Group has agreed to extend EUR236 million of its short term loan due in June 2009, and agreed to an extension of its maturing corporate loan of EUR125 million to 2011. These facilities have scheduled amortisation payments prior to maturity. - The Group expects to go to the markets to raise additional capital in the near term to pay down its Corporate Loan Facility. It already has a conditional undertaking from an existing shareholder regarding EUR15.4 million of any such capital raise.

* 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.

Key Financial Information

INCOME STATEMENT DATA

Year ended Year ended 31 December 31 December ( in EUR’000, except per share data) 2008 2007 Interest income 155,382 144,697 Rental income 281,118 303,744 Service charge income 55,790 60,878 Real estate fund unit interest income - 17,185 (Decrease) / increase in fair value of investment properties (499,151) 35,004 Increase in fair value of real estate fund units - 16,751 Other than temporary impairment on securities (16,794) - Interest expense (285,596) (281,414) Service charge and Property operating expenses (90,239) (83,351) Other operating expenses (47,641) (67,878) Net (loss) / profit before taxation (467,916) 155,787 Net (loss) / profit after taxation (454,073) 134,915 Funds from operations (”FFO”) 57,087 186,286 (Loss) / earnings per weighted average basic share (7.20) 2.12 (Loss) / earnings per weighted average diluted share (7.20) 2.06

Year ended Year ended 31 December 31 December 2008 2007 Weighted average ordinary shares outstanding Basic 63,072,337 63,787,016 Diluted 63,072,337 65,569,559 Ordinary shares outstanding 60,731,646 63,927,634

BALANCE SHEET DATA

31 December 31 December (in EUR’000, except per share data) 2008 2007 Cash and cash equivalents 119,869 146,707 Investment property (including properties held for sale) 4,230,111 5,171,086 Debt investments 1,733,942 2,059,753 Other assets 164,387 130,649 Total assets 6,248,309 7,508,195 Interest bearing debt financing (5,300,880) (5,859,058) Other liabilities (136,377) (175,443) Total liabilities (5,437,257) (6,034,501) Net assets 811,052 1,473,694 Net asset value per ordinary share 13.35 23.05 Net assets - commercial property portfolio 827,272 1,338,673 Net asset value per ordinary share - commercial property portfolio 13.62 20.94 Net assets - debt investment business (16,220) 135,021 Net asset value per ordinary share - debt investment business (0.27) 2.11

Year ended Year ended FFO Reconciliation 31 December 31 December 2008 2007 ( in EUR’000, except per share data) (Unaudited) (Unaudited) Reconciliation of FFO to net profit after taxation Net (loss) / profit after taxation (454,073) 134,915 Decrease / (increase) in fair value of investment properties 499,151 (35,004) Decrease / (increase) in fair value of interest rate swaps 19,015 (13,262) Unrealised movements on currency swaps (net of translation (gains) / losses on related assets) 595 507 (Increase) in fair value of real estate fund units - (16,751) Realised gain on sale of investment properties 5,872 96,500 Deferred tax (benefit) / charge on investment properties (13,473) 19,381 Funds from operations (FFO) 57,087 186,286 FFO per weighted average basic share 0.91 2.92 FFO per weighted average diluted share 0.91 2.84

The table below shows the summarised financial data of the Group’s business segments with the unallocated amounts per between the segments on the basis disclosed below the table.

Income statement data Debt Investment Total Year ended 31 December 2008 investments properties Eurocastle (Unaudited) EUR’000 EUR’000 EUR’000 Revenue1 150,019 342,271 492,290 Other operating losses (269) (518,166) (518,435) Impairment losses (14,476) (2,318) (16,794) Interest expense (115,560) (170,036) (285,596) Service charge and property operating expenses - (90,239) (90,239) Other operating expenses (including foreign currency gains/(losses)2 (7,645) (41,497) (49,142) Operating profit/ (loss) before taxation 12,069 (479,985) (467,916) Taxation credit/(expense) - 13,843 13,843 Net profit/(loss) 12,069 (466,142) (454,073) Decrease / (increase) in fair values 595 518,166 518,761 Realised gains on sale - 5,872 5,872 Deferred tax - (13,473) (13,473) Funds from operations 12,664 44,423 57,087 Funds from operations per ordinary share3 EUR 0.20 0.71 0.91 Funds from operations (excluding gains, sales costs and impairment losses) 27,409 40,640 68,049 Funds from operations (excluding gains, sales costs and impairment losses) per ordinary share EUR 0.44 0.64 1.08 1 Unallocated revenue of EUR1.3 million has been allocated between the segments based on each segment’s share of invested equity. Amounts allocated were; debt investments: EUR0.2 million and investment properties: EUR1.1 million. 2 Unallocated other operating expenses of EUR27.7 million have been allocated between the segments based on each segment’s share of invested equity. Amounts allocated were; debt investments: EUR4.5 million and investment properties: EUR23.2 million. 3 Earnings per share and FFO per share are calculated on the weighted average number of shares at 31 December 2008.

Conference Call

Management will conduct a conference call today, 30 April 2009, to review the Group’s financial results for the year and quarter ended 31 December 2008. The conference call is scheduled for 1:00 P.M. London time (08:00 A.M. New York time). All interested parties are welcome to participate on the live call. You can access the conference call by dialling +1-877-717-3044 (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 Year End 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, 7 May 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 “96515191.”

The Annual Report for 2008 of Eurocastle is available on www.eurocastleinv.com.

Forward-Looking Statements

This release contains statements that constitute forward-looking statements. Such forward-looking statements relate to, among other things, future commitments to acquire real estate and achievement of acquisition targets, availability of attractive investment opportunities, methods of funding portfolios, timing of completion of acquisitions, the operating performance of our investments and financing needs. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may”, “will”, “should”, “potential”, “intend”, “expect”, “endeavour”, “seek”, “anticipate”, “estimate”, “overestimate”, “underestimate”, “believe”, “could”, “project”, “predict”, “continue”, “plan”, “forecast” or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. Our ability to predict results or the actual effect of future plans or strategies is limited. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results and performance may differ materially from those set forth in the forward-looking statements. These forward-looking statements are subject to risks, uncertainties and other factors that may cause our actual results in future periods to differ materially from forecasted results or stated expectations, including the risk that leasing markets will continue to be strong or that Eurocastle will be able to achieve its targets regarding asset disposals, operational growth particularly any increase in leasing of vacant space on acceptable terms or take advantage of widening credit spreads to acquire good quality collateral at discounted prices.

Disclaimer

NOTHING IN THIS PRESS RELEASE IS INTENDED AS AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES IN THE UNITED STATES.

SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITES STATES ABSENT REGISTRATION UNDER THE US SECURITIES LAWS OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH LAWS. AN INVESTMENT IN EUROCASTLE INVESTMENT LIMITED (THE “COMPANY”) CARRIES CERTAIN RISKS AND PAST PERFORMANCE CANNOT BE RELIED ON AS A GUIDE TO FUTURE PERFORMANCE.

Contact: Mark Woodall, IAG as administrator for Eurocastle Investment Limited, Regency Court, Glategny Esplanade, St Peter Port, Guernsey, GY1 1WW; Telephone: +44-1481-737-911.

Source: Eurocastle Investment Limited

Contact: Mark Woodall, IAG as administrator for Eurocastle Investment Limited, Regency Court, Glategny Esplanade, St Peter Port, Guernsey, GY1 1WW; Telephone: +44-1481-737-911.