Issue of Convertible Bonds
Guernsey. 6 October 2009 - Eurocastle Investment Limited (Frankfurt Stock Exchange: EUI1 and Euronext Amsterdam: ECT) ("Eurocastle") is pleased to announce that it has issued €15,000,000 principal amount of 20 per cent. Perpetual Subordinated Convertible Securities at an effective premium to par value. These securities have been issued on substantially the same terms and conditions as and shall rank pari passu with, the €75,000,000 Perpetual Subordinated Convertible Securities issued by Eurocastle on 25 June 2009, a press release in respect of which was issued on 24 June 2009. The convertible securities are convertible into ordinary shares of Eurocastle.

The proceeds of the issue will be used to repay a portion of Eurocastle's corporate facility.

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.

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.