Eurocastle Investment Limited
25 June 2004

       RNS announcement confirming exercise of the over-allotment option

Eurocastle Investment Limited

     This announcement and the information contained herein is not for
     publication, distribution or release in, or into, the United States, 
     Canada, Australia or Japan.

Exercise of Over-Allotment Option for Eurocastle Investment Limited

Eurocastle Investment Limited (the 'Company') announces that Morgan Stanley
Securities Limited has given notice that it is exercising, as stabilising
manager, in full the over-allotment option over 600,000 ordinary shares referred
to in the listing particulars issued by the Company on 24 June 2004 relating to
the offering of 6,000,000 ordinary shares in the Company.  All of these
additional ordinary shares will be issued by the Company.  The additional
ordinary shares have been placed with institutional investors at the offering
price of €12.00, raising additional gross proceeds for the Company of €7.2
million.

25 June 2004

For further information please contact:

  Fortress Investment Group LLC
  Lilly H. Donohue
  +1 212 798-6118

Morgan Stanley Securities Limited is acting for Eurocastle and no one else in
connection with the proposed offering and will not be responsible to anyone
other than Eurocastle for providing the protections afforded to its clients or
for providing advice in relation to the proposed offering or any other matter
referred to herein.

This announcement does not constitute, or form part of, an offer or invitation
to sell or issue, or any solicitation of an offer to purchase or subscribe for
securities and any subscription for or purchase of, or application for, shares
in Eurocastle should only be made on the basis of information contained in the
listing particulars to be issued in due course and any supplements thereto.  The
listing particulars will contain certain detailed information about Eurocastle
and its management, as well as financial statements and other financial data.

This document is not an offer of securities for sale in the United States.  The
securities discussed herein have not been and will not be registered under the
US Securities Act of 1933, as amended (the 'US Securities Act'), and may not be
offered or sold in the United States absent registration or an exemption from
registration under the US Securities Act.  No public offering of the securities
discussed herein is being made in the United States.  Eurocastle is not, and
will not be, registered under the US Investment Company Act of 1940, as amended,
and investors will not be entitled to the benefits of such Act.  This
announcement and the information contained herein is not for publication,
distribution or release in, or into, the United States.