Eurocastle Investments Limited and Subsidiaries - Financial Results for Half Year and Quarter Ended 30 June 2006

Guernsey (ots) -

- Cross-Reference: FINANCIAL RESULTS FOR HALF YEAR AND QUARTER
ENDED 30 JUNE 2006 are available at
http://www.presseportal.de/dokumente.html -

Eurocastle Investment Limited is a closed-ended investment company
which focuses on 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.

Half Year Highlights

- Dividends declared for the second quarter 2006 is 40 cents per
share on 45.7 million shares outstanding. First quarter 2006
dividend was 30 cents per share on 45.6 million shares outstanding

- Committed to purchase or entered into exclusive negotiations to
purchase an additional EUR840 million of real estate assets towards
Eurocastle's 2006 target of EUR1 billion in new acquisitions.
Approximately EUR46 million of the EUR840 million was funded in the
second quarter 2006

- 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

- Funded EUR14.5 million in the second quarter which completes the
acquisition of a EUR107 million retail property portfolio yielding
approximately 7%, which began in the fourth quarter 2005

- Raised net proceeds of EUR524 million of new equity capital,
helping to more than triple equity book value from year end 2005 to
EUR935.9 million, or an increase of 66% to EUR20.49 on a per share
basis

- Increase in net asset value includes revaluation gains of
EUR77.3 million, which are included in operating income for the half
year.

- Increased occupancy of property portfolios

- Deutsche Bank portfolio current occupancy rate of 78.2% at
quarter end, up from 74.6% at 2005 year end

- Dresdner Bank portfolio increased occupancy to 81.4% at 30 June
2006, up from 80.7% at time of acquisition

Key Performance Indicators

Second Quarter 2006

- Net profit after tax of EUR13.7 million for the second quarter
2006, increased from EUR6.8 million for the second quarter 2005, an
increase of 103%

- Earnings per ordinary share of EUR0.30, or EUR0.29 per diluted
share, for the second quarter 2006 compared to EUR0.36 per ordinary
share, or EUR0.35 per diluted share, for the second quarter 2005

- Funds from operations ("FFO", see Key Financial Information)
increased by 189% to EUR18.0 million for the second quarter 2006 from
EUR6.2 million for the second quarter 2005

- FFO of EUR0.40 per ordinary share, or EUR0.38 per diluted share

- FFO return on average invested capital* was 8.9% for the second
quarter 2006

First Half 2006

- Net profit after tax of EUR106.6 million for the first half
2006, increased from EUR13.2 million for the first half 2005, an
increase of 707%

- Earnings per ordinary share of EUR2.56, or EUR2.46 per diluted
share, for the first half 2006 compared to EUR0.71 per share, or
EUR0.69 per diluted share, for the first half 2005

- Funds from operations ("FFO", see Key Financial Information)
increased by 151% to EUR31.9 million for the first half 2006 from
EUR12.7 million for the first half 2005

- FFO of EUR0.77 per ordinary share, or EUR0.74 per diluted share

- FFO return on average invested capital* was 8.9% for the first
half 2006

* Invested capital represents capital and reserves less hedging
reserves and net unrealised gains on available-for-sale securities,
real estate fund units and investment properties (net of attributable
deferred taxation).
Conference Call

Management will conduct a conference call today, 23 August 2006 to
review the Company's financial results for the half year and quarter
ended 30 June 2006. The conference call is scheduled for 3 P.M.
London time (10 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 Second
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,
30 August 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 "4508124."

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