Eurocastle Closes Sale of Non-core Real Estate Portfolio

Released: 05/07/2007

Guernsey. 5 July 2007 – Eurocastle Investment Limited (Frankfurt Stock Exchange: EUI1 and Euronext Amsterdam: ECT) today announced that it has closed 92% (by value) of the property sales announced in March to an entity owned by the Whitehall Street Real Estate Funds, real estate funds managed by Goldman Sachs. The gains realized on the sale of these assets will be recognized in the second quarter 2007. The remaining assets are expected to close during the coming months once customary conditions have been satisfied.

In March 2007, Eurocastle agreed to sell a non-core real estate portfolio comprising 78 properties for a total price of approximately €325 million. The sale price exceeds Eurocastle’s carrying value by approximately 9% and results in a realized gain net of all costs) of approximately €26 million, or FFO per share of €0.40.

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 Frankfurt Stock Exchange under the symbol “EUI1” and on Euronext Amsterdam under the symbol “ECT.” Eurocastle is managed by an affiliate of Fortress Investment Group, a leading global alternative asset manager with approximately $36 billion in assets under management as of March 31, 2007. 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