Eurocastle sells Italian Real Estate Fund Units (FIP) for €169.2 Million

Released: 23/10/2007

Guernsey. 23 October 2007 – Eurocastle Investment Limited (Frankfurt Stock Exchange: EUI1 and Euronext Amsterdam: ECT) today announced that it has agreed to sell its entire holding of FIP units in Italy for a gross sale price of €169.2 million. The transaction will realize a gain (net of all costs) of approximately €15.7 million, or FFO per share of €0.25. The completion of the transaction, which is subject to customary conditions, is expected to close this month. The sale of the FIP units is consistent with Eurocastle’s strategy to sell non core assets. Eurocastle will use the net proceeds to repay debt.

About Eurocastle

Eurocastle Investment Limited is a closed-ended investment company which primarily 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 LLC, a global alternative asset management firm with approximately $43.3 billion in assets under management as of June 30, 2007. For more information regarding Eurocastle Investment Limited and to be added to our email distribution list, please visit www.eurocastleinv.com.

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