Issue of Additional Convertible Bonds
Guernsey. 19 October 2009 - Eurocastle Investment Limited (Frankfurt Stock Exchange: EUI1 and Euronext Amsterdam: ECT) ("Eurocastle") is pleased to announce that it has issued €9,750,000 principal amount of 20 per cent. Perpetual Subordinated Convertible Securities. These securities form a part of the same series, and are issued on similar terms, to the issue of €15,000,000 20 per cent. Perpetual Subordinated Convertible Securities completed earlier this month and described in a press release issued on 6 October 2009. The convertible securities are convertible into ordinary shares of Eurocastle.

The proceeds of the issue will be used to satisfy a portion of the Company's debt obligations.

This issue brings the total principal amount of 20 per cent. Perpetual Subordinated Convertible Securities issued by Eurocastle, following the first issue in June 2009 of €75,000,000 of securities, to approximately €100,000,000.