Eurocastle Investment Limited Announces Tender Offer

Guernsey (ots) - Eurocastle Investment Limited (the "Company")
(Frankfurt Stock Exchange: EUI1 and Euronext Amsterdam: ECT)
announced today the posting of its circular (the "Circular") to
shareholders in relation to a proposed tender offer for the purchase
of up to 3.2 million ordinary shares in the Company ("Ordinary
Shares") for a fixed price of EUR 6.00 per Ordinary Share in order to
return a maximum of EUR 19.2 million in cash to shareholders (the
"Tender Offer"). The Tender Offer is being undertaken pursuant to a
buyback authority passed at the Company's Annual General Meeting held
on 4 June 2008 and was approved by the board of directors of the
Company on 13 August 2008.

The Tender Offer will be open from 21 August 2008 to 6.00 p.m.
(CET) on 18 September 2008 and is being made at a price per existing
Ordinary Share in issue of EUR 6.00 (the "Tender Price"). The Tender
Price represents a premium of EUR 1.10 over the closing price (as
derived from the Euronext Amsterdam Daily Official List (Officiële
Prijscourant)) of EUR 4.90 per Ordinary Share on 13 August 2008,
being the last date before Eurocastle's intention to launch a Tender
Offer was announced. The repurchase of Ordinary Shares by the Company
will be carried out through ABN AMRO Bank N.V. acting for and on
behalf of the Company as agent. The transaction will be carried out
on- market through the available systems of Euronext Amsterdam N.V..
The Tender Offer will be financed through the use of the Company's
cash on account.

The Tender Offer is available to eligible shareholders outside
Canada, Australia and Japan in respect of the number of Ordinary
Shares registered in those shareholders' names at 6.00 p.m. (CET) on
18 September 2008 (the "Record Date").

Background to and reasons for the Tender Offer

As the Company has funds surplus to the operational requirements
of its continuing activities, the Directors believe that it is an
appropriate time to return through the Tender Offer up to EUR 19.2
million of cash to shareholders. In arriving at the level of cash
available to be returned to shareholders, the Directors have taken
account of the levels of funding remaining within the Company's group
to enable it to meet its working capital requirements.

The Tender Offer will provide eligible shareholders with an
opportunity to sell part or all of their respective shareholdings and
to receive their respective share of the cash which the Company is
seeking to return. The Tender Offer will allow the Company to broaden
the return of cash to include those shareholders whose shares might
not otherwise be purchased by the Company through a general on-market
buy back.

Eligible shareholders will be entitled to tender to the Company up
to 5 per cent. of their holding of Ordinary Shares as at the Record
Date (the "Basic Entitlement"). Tendering shareholders may also be
able to participate in the cash distribution in excess of their Basic
Entitlement, up to their maximum shareholding in the Company, to the
extent that other shareholders do not wish to participate fully in
the Tender Offer.

The board believes that the Tender Offer will satisfy the
objective of returning capital to Shareholders in a manner that is
earnings enhancing while enabling all Shareholders to participate pro
rata, should they choose to.

All Ordinary Shares bought back will be withdrawn from listing and
trading on Euronext Amsterdam by Euronext NYSE and cancelled.

The Tender Offer

The formal terms and conditions of the Tender Offer are set out in
the Circular and tender form. The results of the Tender Offer will
be announced on 19 September 2008 and published on the Company's
website ( www.eurocastleinv.com ).

Expected timetable

|Tender Offer opens | |21 August 2008 | |
|Last time and date for receipt of | |3.00 p.m. (CET) on 15 | |
|Tender Forms in respect of | |September 2008 | |
|certificated Ordinary Shares | | | |
|Tender Closing Date | |6.00 p.m. (CET) on 18 | |
| | |September 2008 | |
|Record Date for the Tender Offer | |6.00 p.m. (CET) on | |
| | |18 September 2008 | |
|Announcement of results of the Tender| |19 September 2008 | |
|Offer | | | |
|Settlement date on which CREST | |25 September 2008 | |
|accounts and Euroclear Nederland | | | |
|accounts will be credited with Tender| | | |
|Offer proceeds and revised holdings | | | |
|of uncertificated Ordinary Shares | | | |
|Despatch of cheques for Tender Offer | |25 September 2008 | |
|proceeds for certificated Ordinary | | | |
|Shares | | | |
|Despatch of balance share | |25 September 2008 | |
|certificates for unsold Ordinary | | | |
|Shares and share certificates for | | | |
|unsuccessful tenders (certificated | | | |
|holders only) | | | |

The above times and dates may be subject to change and, in the
event of such change, the revised times and/or dates will be notified
to shareholders.

Information in connection with the Tender Offer will be published
on the Company's website (www.eurocastleinv.com) or can be obtained
from ABN AMRO Bank N.V., Equity Capital Markets/Corporate Actions
(telephone number +31 (0) 20 383 6707).

About Eurocastle

Eurocastle Investment Limited is an investment company which
primarily owns and manages German commercial real estate assets. The
Company is Euro denominated and is listed on the Frankfurt Stock
Exchange under the symbol "EUI1" and on Euronext Amsterdam under
symbol "ECT". The Company is managed by an affiliate of Fortress
Investment Group LLC, a global alternative asset manager with
approximately $35.1 billion in assets under management as of 30 June
2008.

For more information regarding Eurocastle Investment Limited and
to be added to our email distribution list, please visit
http://www.eurocastleinv.com .

Notes

The information in this announcement should be read in conjunction
with the full text of the Circular. Terms used in this announcement
but not defined herein have the meaning given to them in the
Circular.

This announcement does not constitute a recommendation concerning
the Tender Offer and should not be construed as advice relating to
legal, taxation or any other matters. The value of shares can go down
as well as up. Past performance is not a guide to future performance.
Investors should consult a professional adviser as to the suitability
of the Tender Offer for the investor concerned.

Certain statements made in this announcement are forward looking
statements. Such statements are based on current expectations and are
subject to a number of risks and uncertainties that could cause
actual events or results to differ materially from any expected
future events or results referred to in these forward looking
statements.

The distribution of this announcement in certain jurisdictions may
be restricted by law. Persons into whose possession this announcement
comes should inform themselves about and observe any such
restrictions. Any failure to comply with these restrictions may
constitute a violation of the securities laws of any such
jurisdiction.

Originaltext: Eurocastle Investment Limited
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For further information please contact:
International Administration (Guernsey) Limited
Company Administrator
Attn: Mark Woodall
Tel: +44 1481 723450