Eurocastle Investment Limited And Subsidiaries / Interim Financial Results For The Half Year And Quarter Ended 30 June 2007

London (ots) -

- Cross-Reference: Interim Financial Results For The Half Year And
Quarter Ended 30 June 2007 are available at
http://www.presseportal.de/dokumente abrufbar -

Eurocastle Investment Limited owns and invests primarily in German
commercial property. The Group is Euro denominated and currently
listed on Euronext Amsterdam, under the symbol "ECT" and on the
Frankfurt Stock Exchange, under the symbol "EUI1". Eurocastle's
objective is to build long-term value for its shareholders and to pay
out stable and growing dividends. 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.

Half Year Highlights

- Dividend declared for the second quarter 2007 is E0.60 per
share. This compares to the second quarter 2006 dividend of
E0.40 per share and first quarter 2007 dividend of E0.45 per
share.
- Completed E2.2 billion of commercial property purchases,
including the acquisition of 56 German commercial property
assets ("the Mars portfolio") announced in December 2006 and
completed in first quarter 2007. .
- Signed 365 leases for approximately 143,000 square meters,
including 140 new leases for approximately 40,000 square
meters.
- Completed the sale of 72 of the 78 non-core assets held for sale
at 31 March 2007, at a 9% premium to the 2006 year end carrying
value, resulting in a realised gain on the book cost, net of
associated sale costs and taxes, of E26.5 million or E0.42 per
share.
- Admitted to trading on the Frankfurt Stock Exchange on 20 June
2007.
- Increase in the fair value of investment properties of E280.4
million for the six months to 30 June 2007 of which E239.1
million was achieved in the second quarter.
- Entered into exclusive negotiations to acquire 68 retail
properties for an aggregate all-in purchase price of
approximately E210 million.

Key Performance Indicators

Second Quarter 2007

- Net profit after tax of E236.2 million for the second quarter
2007, increased from E13.7 million for the second quarter
2006.
- Earnings per ordinary share of E3.70 or E3.58 per diluted share,
for the second quarter 2007 compared to E0.30 per ordinary share
or E0.29 per diluted share, for the second quarter 2006.
- Funds From Operations ("FFO", see Key Financial Information)
increased by 218% to E57.2 million for the second quarter 2007
from E18.0 million for the second quarter 2006.
- FFO of E0.90 per ordinary share (30 June 2006: E0.40 per share)
or E0.87 per diluted share (30 June 2006: E0.38 per
share).
- FFO return on average invested capital* was 15.6% for the second
quarter 2007.
- NAV per share increased to E29.07 at the end of the second
quarter 2007 from E25.58 at the end of the first quarter 2007,
an increase of 13.6%

First Half 2007

- Net profit after tax of E290.5 million for the first half 2007,
compared to E106.6 million for the first half 2006.
- Earnings per ordinary share of E4.56 or E4.40 per diluted share,
for the first half 2007, compared to E2.56 per ordinary share or
E2.46 per diluted share for the first half 2006.
- FFO increased by 167% to E85.1 million for the first half 2007
from E31.9 million for the first half 2006.
- FFO of E1.34 per ordinary share or E1.29 per diluted share for
the first half 2007 compared to FFO of E0.77 per ordinary share
or E0.74 per diluted share for the first half 2006.
- FFO return on average invested capital* was 11.7% for the first
half 2007.
- NAV per share increased to E29.07 at the end of the second
quarter 2007 from E24.73 at the end of the first quarter 2006,
an increase of 17.8%.

* 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).

Key Financial Information

Segmental Information

The Group is now reporting financial information by business
segment on a quarterly basis. This is consistent with the way it
manages the business and provides insight into the capital
utilisation and performance of the individual business segments.

Segmental analysis prepared according to IFRS has been disclosed
in Note 28. The tables below show the summarised financial data of
the Group's business segments with the unallocated amounts per Note
28 allocated between the segments on the basis disclosed below each
table.

Balance sheet data Debt Real estate Investment Total
As at 30 June 2007 investment fund units properties Eurocastle
(Unaudited) EUR 000 EUR 000 EUR 000 EUR 000

Investments 2,101,574 153,099 5,491,999 7,746,672
Other assets1 31,581 12,819 338,468 382,868
Total assets 2,133,155 165,918 5,830,467 8,129,540
Interest-bearing
debt financing (1,902,933) (96,428) (4,012,929) (6,012,290)
Other liabilities2 (45,362) (2,135) (149,518) (197,015)
Total liabilities (1,948,295) (98,563) (4,162,447) (6,209,305)

Segment net assets 184,860 67,355 1,668,020 1,920,235

Tax liability - (682) (64,249) (64,931)
Minority interest (2) (4) - (6)

Net assets 184,858 66,669 1,603,771 1,855,298

Net assets
per share EUR 2.90 1.04 25.13 29.07

1 Unallocated other assets of E12.8 million have been allocated
between the segments based on each segment's share of net assets
before allocation. Amounts allocated were; debt investments:
E1.2million, real estate fund units: E0.4 million and investment
properties: E11.2 million. 2 Unallocated other liabilities of
E15.3 million have been allocated between segments based on each
segment's share of net assets before allocation. Amounts
allocated were; debt investments: E1.5 million, real estate fund
units: E0.5 million and investment properties: E13.3 million.

Income statement Debt Real estate Investment Total
data Three months investment fund units properties Eurocastle
ended 30 June 2007 EUR 000 EUR 000 EUR 000 EUR
000(Unaudited)
Operating income1 33,378 5,023 345,752 384,153
Interest expense 2 (26,907) (1,354) (40,304) (68,565)
Service charge and
property operating
expenses - - (19,895) (19,895)
Other operating
expense (including
foreign currency
gains/(losses) 3 (1,958) (608) (18,618) (21,184)
Segment result 4,513 3,061 266,935 274,509
Taxation expense - (96) (38,220) (38,316)
Net profit 4,513 2,965 228,715 236,193
Increase in fair value - (1,265) (249,467) (250,732)
Realised gains on sale
of investment properties - - 36,155 36,155
Deferred tax - - 35,567 35,567
Funds from operations 4,513 1,700 50,970 57,183
Funds from operations
per share EUR 0.07 0.03 0.80 0.90
Adjusted funds from
operations per
share4 EUR 0.10 0.03 0.38 0.51

1 Unallocated operating income of E0.02 million has been
allocated between the segments based on each segment's share of net
assets before allocation.Amounts allocated were; debt investments:
E0.002 million and real estate fund units: E0.001 million and
investment properties: E0.02 million.

2 The revolving credit facility expense of E3.0 million has
been allocated between the segments based on each segment's share of
the drawn facility at 30 June 2007. Amounts allocated were; debt
investments: E0.5 million and investment properties: E2.5 million.

3 Unallocated other operating expenses of E17.1 million have
been allocated between the segments based on each segment's share of
net assets before allocation.Amounts allocated were; debt
investments: E1.6 million, real estate fund units: E0.6 million and
investment properties: E14.9 million.

4 Adjusted funds from operations per share excludes net gains
realised on the disposal of investment properties (E27.0 million) and
the write off of unamortised loan costs (E2.2 million) relating to
the redemption of CDO I.

Conference Call

Management will conduct a conference call today, 16 August 2007,
to review the Group's financial results for the quarter ended 30 June
2007. 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 +1-800-811-8824 (from within the U.S.) or +1-913- 981-4903
(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,
23 August 2007, 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 "3684763".

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


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