Guernsey. 6 August 2015 - Eurocastle Investment Limited (Euronext Amsterdam: ECT) today has released the financial results for the first half year ended 30 June 2015.

FINANCIAL HIGHLIGHTS
Normalised FFO
Q2 2015: €2.3 million, or €0.04 per share
First Half 2015: €6.6 million or €0.14 per share
Before costs, New Investments alone generated €3.7 million of Normalised FFO for the second quarter, resulting in a return on average net invested capital[1] of 26%
Adjusted Net Asset Value[2]
€543.3 million, or €7.50 per share, a decline of €11.5 million or €0.16 per share from the first quarter
Second Quarter Dividend - of €9.0 million, or €0.125 per share paid in July 2015
Q2 2015 Q1 2015 H1 2015 H1 2014
€ million € per share € million € per share € million € per share € million € per share
Normalised FFO 2.3 0.04 4.3 0.13 6.6 0.14 3.0 0.09
Legacy Cash Flow Received 3.8 0.06 29.3 0.40 33.1 0.46 30.9 0.95
Adjusted NAV[3]2 543.3 7.50 554.8 7.66 543.3 7.50 293.6 9.00

SECOND QUARTER 2015 BUSINESS HIGHLIGHTS

Capital Raising - On 29 April 2015, the Company successfully completed an equity offering raising gross proceeds of €312.1 million through the issuance of 39.8 million shares at a price of €7.85 per share. Net proceeds of the offer were approximately €304.5 million or €7.66 per share and will be used by the Company to pursue new investment opportunities in the Italian debt and real estate markets in line with the Company's investment strategy.

New Investment Performance - Realised €5.3 million of cash flow. Cash flows for the first half of 2015 total €15.9 million, €8.4 million ahead of expectations.

Legacy Business Realisations - In addition to the €29.3 million generated from sales in the first quarter of 2015, Eurocastle received a further €3.8 million of cash flows primarily through sales fees in Drive. Further expected proceeds of €22 million to €24 million were secured after the Company agreed to sell the Wave portfolio in April 2015:
The majority of the assets sold from Wave closed in July, repaying its financing in full and generating approximately €26 million of the €30 million of expected net proceeds to the Company (before historic taxes in the range of €6 million to €8 million).

ADDITIONAL INFORMATION
For additional information that management believes to be useful for investors, please refer to the latest presentation posted on the Investor Relations section of the Company's website, www.eurocastleinv.com. For consolidated investment portfolio information, please refer to the Company's most recent Financial Report, which is available on the Company's website (www.eurocastleinv.com).

EARNINGS CALL INFORMATION
Eurocastle's management will host an earnings conference call on Thursday, 6 August 2015 at 2:00 P.M. London time (9:00 A.M. New York time). All interested parties are welcome to participate on the live call. You can access the conference call by dialing first +1-800-215-5243 (from within the U.S.) or +1-330-863-8154 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference "Eurocastle First Half 2015 Earnings Call or conference ID number 91348389."

A webcast of the conference call will be available to the public on a listen-only basis at www.eurocastleinv.com. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast. A replay of the webcast will be available for three months following the call.

For those who are not available to listen to the live call, a replay will be available until 11:59 P.M. New York time on Sunday, 6 September 2015 by dialing +1-855-859-2056 (from within the U.S.) or +1-404-537-3406 (from outside of the U.S.); please reference access code "91348389"

NORMALISED FFO
Normalised FFO is a non-IFRS financial measure that, with respect to Eurocastle's Legacy Business, provides investors with additional information regarding the underlying performance of its Legacy Assets and their ability to service debt and make capital expenditure. The measure excludes realised gains and losses, sales related costs (including realised swap losses), impairment losses and foreign exchange movements. On the Company's New Investments, income is recognised on an expected yield basis allowing Eurocastle to report the run rate earnings from these investments in line with their projected annualised returns.

Eurocastle believes that, given the strategy of seeking to monetise the existing value of the Legacy Business, focusing on the Normalised FFO of the Company's New Investments will further enable the investor to understand current and future earnings given annualised returns achieved and the average net invested capital over the relevant period.

In the first half of 2015, Eurocastle generated Normalised FFO of €6.6 million, or €0.14 per share, with €7.4 million (€0.16 per share) related to New Investments before corporate costs. Given the average net invested capital in the first half of 2015 was approximately €58.5 million, this equates to a yield of 26%.

A reconciliation of Normalised FFO to the IFRS based net loss after tax for the quarter ended 30 June 2015 can be found below:

INCOME STATEMENT RECONCILIATION
New Investments € million Corporate[4] € million Legacy € million Total € million

Net loss after taxation
attributable to ordinary equity holders (0.3) (3.3) (25.4) (29.0)
Net loss (€ per Share) (0.01) (0.06) (0.42) (0.49)
Mars Floating Portfolio Profits - - (0.1) (0.1)
Fair Value to Effective Yield Adjustments 4.0 - - 4.0
Legacy Real Estate Revaluations - - 30.4 30.4
Legacy Debt Impairments - - (3.1) (3.1)
Impact of Revised Management Agreement - (0.2) - (0.2)
Transaction Costs, G/L on FX & Other Adjustments - 0.2 0.1 0.3
Normalised FFO 3.7 (3.3) 1.9 2.3
Normalised FFO (€ per Share) 0.07 (0.06) 0.03 0.04

ADJUSTED NAV RECONCILIATION
New Investments
€ million Corporate 1 € million Legacy € million Total € million
Assets 52.9 435.9 950.3 1,439.1
Liabilities 3.0 13.4 951.4 967.8
Total Equity 49.9 422.5 (1.1) 471.3
Non-controlling interest (1.2) - (0.1) (1.3)
Total Shareholders' Equity (NAV) 48.7 422.5 (1.2) 470.0
Real Estate Fund Commitment Reallocation 11.3 (11.3) - -
Romeo Commitment Reallocation 250.0 (250.0) - -
Legacy Debt Business Investment Reallocation 7.1 - (7.1) -
Mars Floating and Drive Negative NAV Add-back2 - - 73.3 73.3
Wave Portfolio Sale Reallocation - 24.2 (24.2) -
Adjusted NAV 317.1 185.4 40.8 543.3
Adjusted NAV (€ per Share) 4.38 2.56 0.56 7.50

ABOUT EUROCASTLE
Eurocastle Investment Limited is a closed-ended investment company that owns Italian loans and real estate related assets, German commercial real estate and European real estate securities and loans. The Company is Euro denominated and is listed on Euronext Amsterdam under the symbol "ECT". Eurocastle is managed by an affiliate of Fortress Investment Group LLC, a leading global investment manager. For more information regarding Eurocastle Investment Limited and to be added to our email distribution list, please visit www.eurocastleinv.com.

FORWARD-LOOKING STATEMENTS
This release contains statements that constitute forward-looking statements. Such forward-looking statements may relate to, among other things, future commitments to sell real estate and achievement of disposal targets, availability of investment and divestment opportunities, timing or certainty of completion of acquisitions and disposals, the operating performance of our investments and financing needs. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may", "will", "should", "potential", "intend", "expect", "endeavour", "seek", "anticipate", "estimate", "overestimate", "underestimate", "believe", "could", "project", "predict", "project", "continue", "plan", "forecast" or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. The Group's ability to predict results or the actual effect of future plans or strategies is limited. Although the Group believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, its actual results and performance may differ materially from those set forth in the forward-looking statements. These forward-looking statements are subject to risks, uncertainties and other factors that may cause the Group's actual results in future periods to differ materially from forecasted results or stated expectations including the risks regarding Eurocastle's ability to declare dividends, amortise the Group's debts, renegotiate the Group's credit facilities, make new investments, or achieve its targets regarding asset disposals or asset performance.
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[1] Time weighted average of investments made (net of any capital returned) over the relevant period.

[2] Adjusted NAV excludes the negative net asset value of the Mars Floating portfolio and Drive portfolio as outlined on page 8 of the Business and Financial Review section of the Financial Statements.


[4] Corporate includes uninvested cash and fees payable to the Manager.

2 The negative NAVs of the Mars Floating and Drive portfolios are excluded from the Groups reported adjusted NAV as these financings are non-recourse to the Company.


Eurocastle Sells the Remaining Asset in the Mars Fixed II Portfolio
Guernsey. 6 August 2015 - In line with its strategy to accelerate recoveries from its real estate assets in Germany, Eurocastle Investment Limited (Euronext Amsterdam: ECT) today announces that it has agreed to sell the remaining asset in the Mars Fixed II Portfolio at a price in line with its current valuation. The sale, after the repayment of debt and transaction costs, is expected to generate approximately €11.5 million of net proceeds to the Company. The transaction, which is subject to customary closing conditions, is expected to close towards the end of November 2015.