Newcastle Announces Closing of Public Offering of Common Stock Including Exercise of Option to Purchase Additional Shares

Newcastle Investment Corp.

announced today that it has completed the sale of 40,250,000 shares of its common stock, including 5,250,000 shares sold pursuant to the exercise in full of the underwriters' option to purchase additional shares. The gross proceeds from the sale were approximately $200 million. All of the shares were offered by the Company and were issued under the Company's existing effective shelf registration statement, previously filed with the Securities and Exchange Commission. The Company intends to use the net proceeds from the offering for general corporate purposes, including to make a variety of investments, which the Company expects to primarily include acquisitions of senior housing properties, but which could also include acquisitions of CDO debt, other real estate securities and loans, operating businesses or other assets. BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and UBS Securities LLC acted as joint book-running managers for the offering. This press release does not constitute an offer to sell or the solicitation of an offer to buy shares of common stock, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. ABOUT NEWCASTLE Newcastle focuses on opportunistically investing in, and actively managing, real estate related assets and primarily invests in two distinct areas: (1) Real Estate & Other Debt and (2) Senior Housing Assets. Newcastle is organized and conducts its operations to qualify as a real estate investment trust ("REIT") for federal income tax purposes. The Company is managed by an affiliate of Fortress Investment Group LLC, a global investment management firm.