Eurocastle Investments Limited and Subsidiaries - Financial Results for the Nine Month and Quarter Ended 30 September 2006

Guernsey (ots) -

- Cross-Reference: FINANCIAL RESULTS FOR THE NINE MONTHS AND
QUARTER ENDED 30 SEPTEMBER 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.

Highlights

Third Quarter 2006

- Dividend declared for the third quarter 2006 is 43 cents per
share on 45.7 million shares outstanding. This compares to the
second quarter 2006 dividend of 40 cents per share and third
quarter 2005 dividend of 37 cents per share

- Currently evaluating in excess of EUR4 billion in acquisitions,
in addition to the real estate which Eurocastle has already
acquired or committed to acquire this year. Eurocastle believes
it is likely that it will commit to acquire at least 50% of this
pipeline. If successful, this would bring total 2006 commitments
and acquisitions to approximately EUR3 billion versus
Eurocastle's 2006 acquisition target of EUR1 billion. Given
this large increase in acquisition activity, Eurocastle expects
to raise EUR600-EUR700 million of additional capital in the
fourth quarter of 2006

- In September, Eurocastle entered into an agreement with DB Real
Estate Investment GmbH to acquire a portfolio of 6 office
properties for an all-in purchase price of approximately EUR500
million

- EUR427 million of real estate acquisitions have funded since the
third quarter end, including 5 of the 6 office properties
described above, increasing the funded real estate investment
portfolio from EUR2.9 billion to approximately EUR3.3 billion

- Reduced investment in Italian real estate fund units by 20%,
realising a net gain of EUR2.2 million

- Occupancy of the total real estate portfolio increased from
83.4% at the end of the second quarter to 84.9% at the end of
September

Nine Months Ended 2006

- Raised net proceeds of EUR524 million of new equity capital,
helping to more than triple equity book value from year end 2005
to EUR931.7 million, or an increase of 65% to EUR20.40 on a per
share basis

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

- Increase in net asset value includes revaluation gains of
EUR89.6 million on the total investment property portfolio,
which are included in operating income for the nine months.

- Increased occupancy of property portfolios
o Deutsche Bank portfolio current occupancy rate of 78.7% at
quarter end, up from 74.6% at 2005 year end
o Dresdner Bank portfolio increased occupancy to 82.6% at 30
September 2006, up from 80.7% at time of acquisition

Key Performance Indicators

Third Quarter 2006

- Net profit after tax of EUR27.5 million for the third quarter
2006, increased by 68% from EUR16.4 million for the third
quarter 2005

- Earnings per ordinary share of EUR0.60, or EUR0.58 per diluted
share, for the third quarter 2006 compared to EUR0.68 per
ordinary share, or EUR0.65 per diluted share, for the third
quarter 2005

- Funds from operations ("FFO", see Key Financial Information)
increased by 125% to EUR20.9 million for the third quarter 2006
from EUR9.3 million for the third quarter 2005

- FFO of EUR0.46 per ordinary share, or EUR0.44 per diluted share
for the third quarter 2006 compared to FFO of EUR0.38 per
ordinary share, or EUR0.37 per diluted share for the third
quarter 2005

- FFO return on average invested capital* was 10.3% for the third
quarter 2006

Nine Months Ended 2006

- Net profit after tax of EUR134.1 million for the first nine
months of 2006, increased from EUR29.6 million for the first
nine months of 2005, an increase of 354%

- Earnings per ordinary share of EUR3.12, or EUR3.00 per diluted
share, for the first nine months of 2006 compared to EUR1.45 per
share, or EUR1.39 per diluted share, for the first nine months
of 2005

- Funds from operations ("FFO", see Key Financial Information)
increased by 140% to EUR52.8 million for the first nine months
of 2006 from EUR22.0 million for the first nine months of 2005

- FFO of EUR1.23 per ordinary share, or EUR1.18 per diluted share
for the first nine months of 2006 compared to EUR1.08 per
ordinary share or EUR1.04 per diluted share, for the first nine
months of 2005

- FFO return on average invested capital* was 9.4% for the first
nine months of 2006

- Invested capital represents capital and reserves less hedging
reserves, fair value of interest rate swaps 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, 16 November 2006
to review the Company's financial results for the quarter ended 30
September 2006. The conference call is scheduled for 3:00 P.M.
London time (10:00 A.M. New York time). All interested parties are
welcome to participate on the live call. You can access the
conference call by dialing +1-800-811-0667 (from within the U.S.) or
+1-913-981-4901 (from outside of the U.S.) ten minutes prior to the
scheduled start of the call; please reference "Eurocastle Third
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 Thursday,
November 23, 2006 by dialing +1-888-203-1112 (from within the U.S.)
or +1-719-457-0820 (from outside of the U.S.); please reference
access code "6104750."

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