Eurocastle Investment Limited: Exercise of Over-Allotment Option for Eurocastle Investment Limited

Guernsey (ots) -

Eurocastle Investment Limited (the "Company") announces that
Deutsche Bank AG has given notice that it is exercising, as
stabilising manager, the over-allotment option over 1,621,622
ordinary shares (the "Over-Allotment Shares") referred to in the
prospectus issued by the Company on 1 December 2006 relating to the
offering of 16,216,216 ordinary shares in the Company. The
Over-allotment Shares will be issued by the Company. The
Over-Allotment Shares have been placed with institutional investors
at the offering price of EUR37 per share, raising additional gross
proceeds for the Company of approximately EUR60 million.
Deutsche Bank AG, Goldman Sachs International, Lehman Brothers
International (Europe) and Morgan Stanley and Co. International Ltd
acted as Joint Lead Managers of the offering.

It is expected that admission of both the Over-allotment Shares
and the New Shares to listing and trading on Eurolist by Euronext
Amsterdam N.V. will commence, on 6 December 2006.

This announcement is an advertisement and not a prospectus and
investors should not subscribe for or purchase any shares referred to
in this announcement except on the basis of information in the
prospectus published by the Company on 1 December 2005 in connection
with the admission of the New Shares to listing and trading in
Eurolist by Euronext Amsterdam N.V. Copies of the prospectus will be
available from the Company's registered office.

Each of Deutsche Bank AG, Goldman Sachs International, Lehman
Brothers International (Europe) and Morgan Stanley & Co.
International Limited is 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, 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 and 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 Regulation 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 entitled to the benefits of such act.

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 LLC, a
global alternative investment and asset management firm with
approximately $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.

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR
PUBLICATION, DISTRIBUTION OR RELEASE IN, OR INTO, DIRECTLY OR
INDIRECTLY, THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN.

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