Eurocastle Investment Limited and Subsidiaries / Financial Results for the Quarter ended 31 March 2008

London (ots) -

- Cross-Reference: Interim Financial Results For The Quarter Ended
31 March 2008 are available at
http://www.presseportal.de/dokumente -

Eurocastle Investment Limited ("the Company") owns and invests
primarily in German commercial property. The Company and its
subsidiaries ("the Group") has Euro denominated shares in issue
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 .

First Quarter 2008 Highlights

- Net loss after tax was EUR 84.1 million for the three months
ended 31 March 2008, compared with a profit of EUR 54.4 million for
the three months ended 31 March 2007.

- FFO* was EUR 22.6 million or EUR 0.35 per share for the three
months ended 31 March 2008, compared with EUR 27.9 million or EUR
0.44 per share for the three months ended 31 March 2007.

- FFO* return on average invested capital was 6.2% for the three
months ended 31 March 2008, compared to 7.7% for the three months
ended 31 March 2007.

- NAV per share of EUR 19.18 as at 31 March 2008 (31 December
2007: EUR 23.05), comprising of (EUR 0.17) for the debt investment
business (31 December 2007: EUR 2.11) and EUR 19.35 for the
commercial property portfolio (31 December 2007: EUR 20.94). The NAV
decline primarily relates to a reduction in the fair value of
commercial property of EUR 99.8 million and of the debt investment
portfolio of EUR 140.2 million. The decline in fair value on the debt
investment portfolio does not impact earnings or FFO. As the majority
of the financing of the debt investment business is non recourse to
the Group, the exposure to losses is mainly limited to Eurocastle?s
investment in its relevant subsidiaries. The 31 March 2008 IFRS net
asset value reflects approximately EUR 114.9 million of unrealised
losses in non recourse financed subsidiaries that could not be
realised in cash terms by the Group.**

- Adjusted NAV*** reflects the mark-to-market of all our financial
assets and liabilities within the debt investment portfolio and
amounted to EUR 23.04 per share (31 December 2007: EUR 23.47) for the
group as a whole and to EUR 3.69 per share at 31 March 2008 (31
December 2007: EUR 2.54) for the debt investment business.

Portfolio Activity

- Signed 172 commercial leases for approximately 82,000 square
meters or 3.6% of our total lettable space, including 81 new leases
for approximately 27,500 square meters.

- Occupancy was 88.4% at 31 March 2008, unchanged since year end
2007. Excluding the rental guarantee on the Mars portfolio, physical
occupancy was 83.6%. Eurocastle?s target is to increase occupancy to
a stabilized level in the low 90%'s over the next two years,
considering the current pace of leasing as well as the profile of
our leases. Our year end 2008 occupancy target is to be in the high
80%'s.

- Subsequent to quarter end Eurocastle has signed letters of
intent to sell approximately EUR 350 million of German commercial
real estate. It is anticipated that binding agreements will be
entered into in the near future for completion in mid-2008, and that
the sales will result in a net realised gain.

- The credit quality of the EUR 1.9 billion debt portfolio
remained strong. The ratio of upgrades to downgrades for the first
quarter was 4 to 3.

Financing Activity

- On 9 May 2008, the Group successfully converted its EUR 300
million revolving credit facility into a term loan facility of EUR
175 million and extended the maturity from October 2008 to 31 March
2009. (Refer to page 10 for details).

- On 28 May 2008, the Group closed the refinancing of
approximately EUR 330 million (representing all of the outstanding
short term tranche due July 2008) of the original EUR 1.6 billion
credit facility put in place in respect of the Mars portfolio. The
new facility is non-recourse to Eurocastle and matures in June 2009.
The original Mars facility remains in place with approximately EUR 1
billion outstanding due July 2014. (Refer to page 10 for details).

* For an explanation of FFO, see Note 32.

** Please refer to page 9 for more detail.

*** For a reconciliation of NAV to adjusted NAV, see the section
headed "Net asset value" on page 9.

Dividends

- In March 2008, the Board has decided that going forward, the
Company will declare and pay any dividends on a semi-annual basis,
and, therefore, no dividend has been declared for the quarter ended
31 March 2008. Subject to Board approval, Eurocastle intends to pay
out a substantial portion of its expected recurring FFO as dividends.

Share buy-backs

- At the Annual General Meeting, on 4 June 2008, the Company will
seek Shareholder approval to allow it to repurchase outstanding
shares.

Conference Call

Management will conduct a conference call today, 29 May 2008, to
review the Group's financial results for the quarter ended 31 March
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 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 Friday, 6
June 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 "48745870."

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