Preliminary Results, Amendment to Convertible Securities & Management Agreement and New Investment Focus - Seite 3

Taken together, Eurocastle believes that these measures will simplify the capital structure of the company, reduce the Company's ongoing operating costs thus freeing up additional capital for investment, and re-align the investment manager's incentives. If market conditions permit, the Company may seek to raise additional capital through the issue of further shares in order to make new investments. Subject to profits being available for the purpose, the Company also intends to resume regular dividend payments.

New Investment Opportunities

Concurrently, Eurocastle is intending to pursue new investment opportunities in the Italian real estate market. Fortress believes there is the potential for attractive gross unlevered returns through investment in Italian non-performing loans and other real estate assets. Fortress has had a significant presence in Italy since 2000 both as an investor in non-performing loans and through its ownership of Italfondiario, the largest independent non-performing loan servicer in Italy.

Enquiries

Mark Woodall

Tel: [phone]

Holders of Convertible Securities wanting further information should contact Anson Registrars Limited, the Registrar and Principal Paying, Transfer and Conversion Agent for the Convertible Securities, on [phone] or [e-mail].

This announcement does not constitute or form part of any offer or invitation to purchase, otherwise acquire, subscribe for, sell, otherwise dispose of or issue, or any solicitation of any offer to sell, otherwise dispose of, issue, purchase, otherwise acquire or subscribe for, any security in the United States.

The securities mentioned herein have not been, and will not be, registered in the United States under the US Securities Act of 1933 (the "Securities Act"). Securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. There will be no public offer of the securities mentioned herein in the United States.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

Neither the content of Eurocastle's website (or any other website) nor the content of any website accessible from hyperlinks on Eurocastle's website (or any other website) is incorporated in this announcement.

Forward-Looking Statements

Some of the statements contained in this announcement may include forward-looking statements which reflect Eurocastle's or, as appropriate, the Directors' current views with respect to future events and financial performance. Statements which include the words "expects", "believe", "intend", "plan", "project", "anticipate", "would" and similar statements of a future or forward-looking nature identify forward-looking statements for the purposes of the US federal securities laws or otherwise.