Eurocastle Announces Closing of Property Sales

Released: 01/07/2008

Guernsey. 1 July 2008 – Eurocastle Investment Limited (Frankfurt Stock Exchange: EUI1 and Euronext Amsterdam: ECT) today announced that as part of its ongoing program to harvest mature or non-strategic assets, it has completed two property sales for total proceeds of approximately €219 million. These sales represent a portion of the €350 million of German commercial real estate assets under letters of intent, as previously disclosed in our Q1 2008 results. Further announcements will be made with regard to additional property sales which are expected to close in the near future.

The two assets sold have an average NOI yield of approximately 4.5%. Total sale proceeds were approximately 99% of their Q1 2008 net asset values.

About Eurocastle

Eurocastle Investment Limited is an 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 manager with approximately $34.2 billion in assets under management as of March 31, 2008. For more information regarding Eurocastle Investment Limited and to be added to our email distribution list, please visit www.eurocastleinv.com.