Eurocastle Investments Limited and Subsidiaries Interim Results for the Three Months Ended 31 March 2006

London (ots) -

- cross-reference: Preliminary results are available at
http://www.presseportal.de/dokumente.html -

Eurocastle Investment Limited is a closed-ended investment company
which invests primarily in German commercial real estate assets. The
Company is Euro denominated and is listed on Euronext Amsterdam under
the symbol "ECT". Eurocastle's objective is to pay out stable and
growing dividends and to deliver attractive risk-adjusted returns.
Eurocastle is managed by 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 Highlights

- Increased real estate investment portfolio to EUR2.8 billion

- Completed the acquisition of a EUR2 billion German
property portfolio from Dresdner Bank in February 2006, via
the acquisition of Dresdner Grund-Fonds

- Continued acquisition program, completing 21 new retail property
acquisitions for a purchase price of EUR54.7 million, and a
yield of approximately 7.1%

- Committed to purchase or entered into exclusive negotiations to
purchase an additional EUR250 million of real estate assets at
an approximate average 6.75% yield

- Raised net proceeds of EUR524 million of new equity capital,
helping to more than triple equity book value from year end 2005
to EUR928.7 million, or an increase of 65% to EUR20.37 on a per
share basis

- Increase in net asset value includes revaluation gains of
EUR77.9 million, based on an independent valuation of the
Dresdner Bank portfolio, which are included in operating income
for the quarter

- Continued lease-up of Deutsche Bank portfolio to current
occupancy rate of approximately 77% at quarter end, up from
74.6% at 2005 year end

Key Performance Indicators

- Net profit after tax of EUR92.9million for the first quarter
2006, increased from EUR6.5million for the first quarter 2005

- Earnings per ordinary share of EUR2.47, or EUR2.37 per diluted
share, for the first quarter 2006 compared to EUR0.35 per share,

or EUR0.34 per diluted share, for the first quarter 2005

- Funds from operations ("FFO", see Key Financial Information)
increased by 44% to EUR13.9 million for the first quarter 2006
from EUR9.6 million for the fourth quarter 2005

- FFO of EUR0.35 per weighted average diluted share (39.2 million
shares), or EUR0.30 per ordinary share outstanding at quarter
end (45.6 million shares)

- FFO return on average invested capital was 8.9%

- Dividends declared for the period was 30 cents per share on 45.6
million shares outstanding

- Number of shares outstanding increased by 21.4 million shares to
45.6 million shares in the first quarter 2006

Earnings for the first quarter 2006 are higher than management's
expectations at the time of the Dresdner Bank acquisition. As
expected, the earnings do not reflect a full quarter run rate as the
Dresdner portfolio acquisition was completed in mid-February and
therefore, only contributed six weeks of income to Eurocastle's first
quarter financials, but are applied to the increased number of shares
of 45.6 million. The inclusion of a full quarter of earnings from the
Dresdner Bank portfolio would have increased first quarter FFO to
approximately 40 cents per outstanding share.

Conference Call

Management will conduct a conference call today, 24 May 2006 to
review the Company's financial results for the first quarter ended 31
March 2006. The conference call is scheduled for 4 P.M. London time
(11 A.M. New York time). All interested parties are welcome to
participate on the live call. You can access the conference call by
dialing +1-866-323-3742 (from within the U.S.) or +1-706-643-0550
(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 Wednesday,
31 May 2006 by dialing +1-800-642-1687 (from within the U.S.) or
+1-706-645-9291 (from outside of the U.S.); please reference access
code "9019196."

Originaltext: Eurocastle Investment Limited
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Contact:
Mark Woodall
International Administration (Guernsey) Limited
Tel: +44 (0)1481 723450