EUROCASTLE INVESTMENTS LIMITED: Interim Dividend of EUR 0.29 per Share (for first two months of fourth quarter 2006) / Proposed offering of New Shares to Raise approximately EUR 600 million

Guernsey (ots) -

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, OR INTO, THE
UNITED STATES, CANADA, AUSTRALIA OR JAPAN

Eurocastle Interim Dividend

Eurocastle (Euronext Amsterdam: ECT) announced today that its
Board of Directors has declared an interim cash dividend of EUR 0.29
per share (in relation to the first two months of fourth quarter
2006) that will be payable on 15 December 2006 to holders of record
of the Company's Shares on 27 November 2006 (the "Interim Dividend").
The shares issued as part of the Offer described below will not carry
any entitlement to this interim dividend. All shareholders will
benefit from the final 2006 dividend that the Company intends to
declare during the first quarter of 2007.

Eurocastle Share Offer

The Company also announced today its intention to raise
approximately EUR 600 million through an offering to institutional
investors (the "Offer") of new ordinary shares (the "Shares"). An
institutional bookbuilding process is expected to be completed on or
around 30 November 2006, following which the number of Shares being
offered in the Offer and the offer price per Share will be announced.
It is expected that the net proceeds of the Offer will be used to
fund the acquisition of further investments to increase the size and
diversification of the Company's commercial real estate portfolio in
Germany and to fund the repayment of amounts drawn down under the
Company's revolving credit facility with Deutsche Bank. The Company
will grant an over-allotment option to the stabilising manager on
behalf of the underwriters to acquire additional shares representing
up to 10 per cent of the Offer at the offer price. Deutsche Bank AG,
Goldman Sachs International, Lehman Brothers International (Europe)
and Morgan Stanley & Co. International Limited are joint lead
managers and joint bookrunners in respect of the Offer.

About Eurocastle

Eurocastle Investment Limited is a closed-ended investment company
with a focus on German commercial real estate assets. The Company is
Euro denominated and is listed on Euronext Amsterdam under the symbol
"ECT." Eurocastle is managed by Fortress Investment Group, a global
alternative investment and asset management firm with over $26
billion in equity capital currently under management. For more
information regarding Eurocastle Investment Limited and to be added
to our email distribution list, please visit www.eurocastleinv.com.

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

This announcement is an advertisement and not a prospectus and
investors should not subscribe for or purchaser and shares referred
to in this announcement except on the basis of information in the
prospectus to be published by the Company in due course in connection
with the admission of the New Shares to listing in Eurolist by
Euronext Amsterdam and to trading on Euronext Amsterdam's market for
listed securities (the "Prospectus"). Copies of the Prospectus will
be available from the Company's registered office following
publication. No public offer is being made of the Shares. In any
Member State that has implemented the Prospectus Directive, the Offer
will only be made to, and will only be directed at, qualified
investors in that Member State within the meaning of the Prospectus
Directive or otherwise so that there is no offer to the public in
that Member State.

Each of Deutsche Bank AG, London Branch, Goldman Sachs
International, Lehman Brothers International (Europe) and Morgan
Stanley & Co. International Limited, in acting for Eurocastle in
connection with the Offer and no one else and will not be responsible
to anyone other than Eurocastle for providing the protections offered
to clients of Deutsche Bank AG, London Branch, Goldman Sachs
International, Lehman Brothers International (Europe) or Morgan
Stanley & Co. International Limited, as the case may, be nor for
providing advice in relation to the Offer or in relation to the
contents of this announcement or any other transaction, arrangement
or matter referred to herein.

These materials may not be distributed, directly or indirectly, in
or into the United States, Canada, Australia or Japan. They are not
an offer to sell or the solicitation of an offer to buy the
securities discussed herein.

This announcement does not constitute an offer of securities for
sale in the United States. The securities mentioned herein have not
been, and will not be, registered under the U.S. Securities Act of
1933 (the "Securities Act"), and may not be offered or sold in the
United States, or to, or for the account or benefit of, US persons
(as such term is defined in Regulations S under the Securities Act)
unless they are registered under the Securities Act or pursuant to an
exemption from registration. No public offering of securities is
being made in the United States. In addition, the issuer of the
securities mentioned herein has not been and will not be registered
under the U.S. Investment Company Act of 1940 and Investors will not
be entitles to the benefits of such act.