Eurocastle Press Release 31 December 2008 Summary FINAL

Guernsey (ots) -

- Cross-Reference: Eurocastle Press Release 31 December 2008
Summary FINAL is available at
http://www.presseportal.de/dokumente abrufbar -

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 EUR 57.1 million or EUR 0.91 per share for the year
ended 31 December 2008 compared with EUR 186.3 million or EUR 2.92
per share for the year ended 31 December 2007.

* NAV per share of EUR 13.35 as at 31 December 2008 comprising of
(EUR 0.27) for the debt investment business and EUR 13.62 for the
commercial property portfolio (31 December 2007: EUR 23.05 comprising
EUR 2.11 for the debt investment business and EUR 20.94 for the
commercial property portfolio).

* Net loss after tax was EUR 454.1 million for the year ended 31
December 2008, compared with a profit of EUR 134.9 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
EUR 461 million, recognising a gain on book cost, net of all
transaction costs of EUR 4.7 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 EUR 1.3
billion of debt.

* Since year end, the Group has agreed to extend EUR 236 million
of its short term loan due in June 2009, and agreed to an extension
of its maturing corporate loan of EUR 125 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 EUR 15.4 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.

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.

Originaltext: Eurocastle Investment Limited
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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