Eurocastle Investment Limited and Subsidiaries / Financial Results for the year and quarter ended 31 December 2007

London (ots) -

- Cross-Reference: Financial results for the year and quarter
ended 31 december 2007 is available at:
http://www.presseportal.de/dokumente -

Eurocastle Investment Limited owns and invests primarily in German
commercial property. The Group is Euro denominated and 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 .

2007 Highlights

- Net profit after tax of EUR 134.9 million for the year ended 31
December 2007, decreased from EUR 143.8 million for the year ended 31
December 2006.

- FFO* increased by 149.4% to EUR 186.3 million for the year ended
31 December 2007 from EUR 74.7 million for the year ended 31
December 2006.

- FFO return on average invested capital was 12.7% for the year
ended 31 December 2007, compared to 9.1% for the year ended 31
December 2006.

- NAV per share decreased to EUR 23.05 at the end of the fourth
quarter 2007, from EUR 24.73 at 31 December 2006, a decrease of
6.8%. NAV includes commercial property valued at an average NOI yield
of 5.5%.

- 2007 total dividends of EUR 1.95 per share, inclusive of the
fourth quarter 2007 dividend of EUR 0.30 per share.

- A dividend of EUR 0.30 per share has been declared for the
fourth quarter ended 31 December 2007. The dividend is payable on 11
April 2008 to holders on record of Eurocastle?s shares on 2 April
2008.

Portfolio Activity

- Increased commercial property portfolio to EUR 5.2 billion
totalling 591 properties with approximately 2.2 million square meter
of lettable space.

- Completed EUR 2.4 billion of commercial property purchases,
including the acquisition of 56 German commercial property assets
("the Mars portfolio") announced in December 2006 and completed in
the first quarter 2007.

- Signed 684 commercial leases for approximately 228,000 square
meters, including 308 new leases for approximately 84,000 square
meters.

- Increased occupancy from 86.3% (on a pro-forma basis) at the end
of 2006 to 88.4% at the end of 2007.

- Completed asset sales realising gains on book cost of EUR 71.3
million, net of all transaction costs and incentive fees. Assets sold
during 2007 were:

-- Portfolio of 77 properties for gross proceeds of EUR 314.0
million.

-- Remaining holding of 1,200 Italian Real Estate Fund Units (FIP)
for gross proceeds of EUR 169.2 million.

-- The Kudamm Karree building in Berlin for gross proceeds of EUR
155.0 million.

-- The Promenadeplatz building in Munich for gross proceeds of EUR
54.0 million.

- The credit quality of the EUR 2.1 billion debt portfolio
remained strong. The ratio of upgrades to downgrades for 2007 was 44
to 5.

- Subsequent to year end, on the debt investment portfolio:

-- Eliminated all mark to market financing

-- Extended average maturity of financings to 6.3 years

-- Limited recourse financing to EUR 30 million

* For an explanation of FFO, see the section headed "Funds from
Operations" later in this document.

Key Performance Indicators

Year Ended 2007

- Net profit after tax of EUR 134.9 million for the year ended 31
December 2007, decreased from EUR 143.8 million for the year ended 31
December 2006.

- Earnings per ordinary share** for the year ended 31 December
2007 of EUR 2.12 compared to EUR 3.20 per ordinary share for the year
ended 31 December 2006.

- FFO increased by 149.4% to EUR 186.3 million for the year ended
31 December 2007 from EUR 74.7 million for the year ended 31 December
2006.

- FFO of EUR 2.92 per ordinary share** for the year ended 31
December 2007 compared to EUR 1.66 per ordinary share for the year
ended 31 December 2006.

- FFO return on average invested capital* was 12.7% for the year
ended 31 December 2007, compared to 9.1% for the year ended 31
December 2007.

- NAV per share decreased to EUR 23.05 at 31 December 2007, from
EUR 24.73 at 31 December 2006, a decrease of 6.8%.

Fourth Quarter 2007

- Net loss after tax of EUR 205.1 million for the fourth quarter
2007 compared to a net profit after tax of EUR 9.7 million for the
fourth quarter 2006.

- Loss per ordinary share** of EUR 3.21 for the fourth quarter
2007 compared to earnings per ordinary share of EUR 0.19 for the
fourth quarter 2006.

- Funds from Operations ("FFO", see Key Financial Information)
increased by 211.0% to EUR 68.1 million for the fourth quarter 2007
from EUR 21.9 million for the fourth quarter 2006.

- FFO of EUR 1.07 per ordinary share** for the fourth quarter 2007
compared to FFO of EUR 0.43 per ordinary share for the fourth quarter
2006.

- FFO return on average invested capital* was 18.6% for the fourth
quarter 2007, compared to 8.9% for the fourth quarter 2006.

- NAV per share decreased to EUR 23.05 at the end of the fourth
quarter 2007 from EUR 27.95 at the end of the third quarter 2007.
This decline primarily relates to a reduction in the fair value of
commercial property of EUR 220.1 million and unrealised
mark-to-market losses on the debt portfolio of EUR 60.2 million. The
mark-to-market losses did not impact earnings or FFO.

* Invested capital represents capital and reserves less hedging
reserves, fair value of interest rate swaps and net unrealised losses
on available-for-sale securities and cumulative FFO adjustments (as
defined on Page 14).

** Loss/Earnings per share and FFO per share, are calculated on
the weighted average number of shares in issue during the period
ended 31 December 2007.

Conference Call

Management will conduct a conference call today, 28 March 2008, to
review the Group's financial results for the quarter ended 31
December 2007. The conference call is scheduled for 12:00 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 Friday, 4 April
2008 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 "40979042."

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