Eurocastle Sells Non-core Real Estate Portfolio for €325 Million

Released: 29/03/2007

Guernsey. 29 March 2007 – Eurocastle Investment Limited (Euronext Amsterdam: ECT) today announced that it has signed a definitive agreement with an entity owned by the Whitehall Street Real Estate Funds, real estate funds managed by Goldman Sachs, to sell a portfolio of 78 properties covering 254,000 square meters of lettable space for a total price of approximately €325 million. The sale price exceeds Eurocastle's carrying value by approximately 9% and will result in a realized gain (net of all costs) of approximately €26 million, or FFO per share of €0.40.

“This transaction is consistent with our previously disclosed intent to dispose of non-core assets and will further enhance Eurocastle's ability to focus its strategy on high quality office properties in the major real estate markets in Germany,” commented Bruce Snider , Managing Director of Eurocastle's manager. “The current market conditions presented an opportune time to divest these properties and realize the success of our leasing activity.” The completion of the transaction, subject to customary closing conditions, is expected to occur in the second and third quarters of 2007.

About Eurocastle

Eurocastle Investment Limited is a closed-ended investment company which owns and manages German commercial real estate assets. The Company is Euro denominated and is listed on Euronext Amsterdam under the symbol “ECT.” Eurocastle is managed by an affiliate of Fortress Investment Group, a leading global alternative asset manager with over $30 billion in assets under management as of December 31, 2006. For more information regarding Eurocastle Investment Limited and to be added to its email distribution list, please visit www.eurocastleinv.com.

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