EUROCASTLE INVESTMENT LIMITED AND SUBSIDIARIES / INTERIM FINANCIAL RESULTS FOR THE HALF YEAR AND QUARTER ENDED 30 JUNE 2008

Guernsey (ots) -

- Cross-Reference: INTERIM FINANCIAL RESULTS FOR THE HALF YEAR AND
QUARTER ENDED 30 JUNE 2008 are available at
http://www.presseportal.de/dokumente abrufbar -

Eurocastle Investment Limited ("the Company") owns and invests
primarily in German commercial property. The Company and its
subsidiaries ("the Group") has Euro denominated shares in issue
currently listed on Euronext Amsterdam, under the symbol "ECT" and on
the Frankfurt Stock Exchange, under the symbol "EUI1". Eurocastle is
managed by an affiliate of Fortress Investment Group LLC. For more
information regarding Eurocastle and to be added to our email
distribution list, please visit www.eurocastleinv.com .

Highlights

Financial

- FFO* was E32.5 million or E0.51 per share for the quarter ended
30 June 2008 and E55.1 million or E0.86 per share for the half
year ended 30 June 2008, compared with E57.2 million or E0.90
per share and E85.1 million or E1.34 per share for the quarter
and half year ended 30 June 2007 respectively.

- FFO* return on average invested capital was 8.9 % for the
quarter ended 30 June 2008 and 7.5% for the half year ended 30
June 2008, compared to 15.6% and 11.7% for the quarter and half
year ended 30 June 2007 respectively.

- NAV per share of E18.42 as at 30 June 2008 comprising of
(E0.63) for the debt investment business and E19.05 for the
commercial property portfolio (31 December 2007: E23.05
comprising E2.11 for the debt investment business and E20.94
for the commercial property portfolio).

- Adjusted NAV** reflects the mark-to-market of all our financial
assets and liabilities within the debt investment portfolio and
amounted to E23.09 per share for the group as a whole and to
E4.04 per share for the debt investment business (31 December
2007: E23.47 per share for the group as a whole and E2.54 per
share for the debt investment business).

- Net loss after tax was E31.6 million for the quarter ended 30
June 2008 and E115.7 million for the half year ended 30 June
2008, compared with a profit of E236.2 million and E290.5
million for the quarter and half year ended 30 June 2007
respectively. The losses primarily relate to non-cash valuation
adjustments to our portfolio.

Dividends and buy-backs

- Given the large gap between the current share price and
adjusted NAV, the board has decided that accelerating our share
buy-back program at this time is in the best long term interest
of our shareholders. Therefore, a semi-annual distribution to
shareholders of E0.60 per share (E38.4 million) is available to
be made in the following manner; E0.30 per share (E19.2
million) will be paid as a direct dividend distribution and
E0.30 per share (E19.2million) will be used by the company to
launch a cash tender offer for up to 3.2 million shares at a
fixed price of E6.00 per share. The cash dividend will be paid
August 29, 2008 to all holders of Eurocastle shares, on record,
on 19 August 2008, and the cash tender offer will commence upon
publication of a shareholder circular, which is expected to be
by August 22, 2008.****

Business review

Eurocastle's focus in the first half of the year has been in
three major areas: first, reducing short-term funding risks,
second, harvesting fully valued assets, and third, continuing
to lease-up the property portfolio. In all three areas, it has
been a successful year thus far. Since the beginning of 2008
we have financed or refinanced over E730 million of debt.
Additionally we have sold, or entered into binding agreements
to sell approximately E400 million of commercial real estate
and increased physical occupancy on a like-for-like*** basis
from 83.4% to 84.0% during the quarter. We look forward to
continued progress on all of these fronts for the remainder of
the year.

* For an explanation of FFO, see Note 32.
** For a reconciliation of NAV to adjusted NAV, see the section
headed "Net asset value" on page 8.
*** Like-for-like occupancy reflects only those properties owned
at the end of each reporting period.
**** Refer to page 18 for more details.

Conference Call

Management will conduct a conference call today, 14 August 2008,
to review the Group's financial results for the six months and
quarter ended 30 June 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 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 Thursday,
21 August 2008 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 "58788798."

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.

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