Newcastle Announces Treatment of 2008 Dividends

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NEW YORK, Feb. 2 /PRNewswire-FirstCall/ -- Newcastle Investment Corp. (NYSE: NCT) today announced the tax treatment of its 2008 common and preferred stock dividend payments.

Common Stock Dividends

During 2008, taxable dividends for Newcastle Investment Corp.'s common stock (CUSIP# 65105M-108) were $0.347324 per share. The entire fourth quarter 2007 common stock dividend was treated as having been received by shareholders and taxable for 2007. The following table summarizes the tax treatment for the 2008 common stock dividend payments.

                 Declaration   Record       Pay         Cash
                     Date       Date       Date      Distribution
    4th Q 2007     12/13/07   12/31/07   01/30/08      0.720000
    1st Q 2008     03/14/08   04/07/08   04/30/08      0.250000
    2nd Q 2008     06/16/08   07/07/08   07/30/08      0.250000
    3rd Q 2008     09/15/08   10/06/08   10/30/08      0.250000



                   Taxable                                   Long-Term
                   in 2008       Ordinary     Qualified    Capital Gain
    4th Q 2007     0.000000      0.000000      0.000000      0.000000
    1st Q 2008     0.250000      0.250000      0.000000      0.000000
    2nd Q 2008     0.097324      0.097324      0.000000      0.000000
    3rd Q 2008     0.000000      0.000000      0.000000      0.000000
    Totals         0.347324      0.347324      0.000000      0.000000

Series B Preferred Stock Dividends

During 2008, taxable dividends for Newcastle Investment Corp.'s Series B preferred stock (CUSIP# 65105M-207) were $0.609375 per share. The entire fourth quarter 2007 Series B preferred stock dividend was treated as having been received by shareholders and taxable for 2007. The following table summarizes the tax treatment for the 2008 Series B preferred stock dividend payments.

                 Declaration   Record       Pay         Cash
                     Date       Date       Date      Distribution
    4th Q 2007     12/13/07   12/31/07   01/31/08      0.609375
    1st Q 2008     03/14/08   04/07/08   04/30/08      0.609375
    2nd Q 2008     06/16/08   07/07/08   07/31/08      0.609375
    3rd Q 2008     09/15/08   10/06/08   10/31/08      0.609375


                   Taxable                                  Long-Term
                   in 2008       Ordinary     Qualified    Capital Gain
    4th Q 2007     0.000000      0.000000      0.000000      0.000000
    1st Q 2008     0.609375      0.609375      0.000000      0.000000
    2nd Q 2008     0.000000      0.000000      0.000000      0.000000
    3rd Q 2008     0.000000      0.000000      0.000000      0.000000
    Totals         0.609375      0.609375      0.000000      0.000000

Series C Preferred Stock Dividends

During 2008, taxable dividends for Newcastle Investment Corp.'s Series C preferred stock (CUSIP# 65105M-306) were $0.503125 per share. The entire fourth quarter 2007 Series C preferred stock dividend was treated as having been received by shareholders and taxable for 2007. The following table summarizes the tax treatment for the 2008 Series C preferred stock dividend payments.

                  Declaration  Record       Pay         Cash
                     Date       Date       Date      Distribution
    4th Q 2007     12/13/07   12/31/07   01/31/08      0.503125
    1st Q 2008     03/14/08   04/07/08   04/30/08      0.503125
    2nd Q 2008     06/16/08   07/07/08   07/31/08      0.503125
    3rd Q 2008     09/15/08   10/06/08   10/31/08      0.503125



                    Taxable                                  Long-Term
                    in 2008      Ordinary     Qualified    Capital Gain
     4th Q 2007     0.000000     0.000000      0.000000      0.000000
     1st Q 2008     0.503125     0.503125      0.000000      0.000000
     2nd Q 2008     0.000000     0.000000      0.000000      0.000000
     3rd Q 2008     0.000000     0.000000      0.000000      0.000000
     Totals         0.503125     0.503125      0.000000      0.000000

Series D Preferred Stock Dividends

During 2008, taxable dividends for Newcastle Investment Corp.'s Series D preferred stock (CUSIP# 65105M-405) were $0.523438 per share. The entire fourth quarter 2007 Series D preferred stock dividend was treated as having been received by shareholders and taxable for 2007. The following table summarizes the tax treatment for the 2008 Series D preferred stock dividend payments.

                 Declaration   Record      Pay           Cash
                     Date       Date       Date       Distribution
    4th Q 2007     12/13/07   12/31/07   01/31/08      0.523438
    1st Q 2008     03/14/08   04/07/08   04/30/08      0.523438
    2nd Q 2008     06/16/08   07/07/08   07/31/08      0.523438
    3rd Q 2008     09/15/08   10/06/08   10/31/08      0.523438


                    Taxable                                 Long-Term
                    in 2008      Ordinary     Qualified    Capital Gain
    4th Q 2007      0.000000     0.000000      0.000000      0.000000
    1st Q 2008      0.523438     0.523438      0.000000      0.000000
    2nd Q 2008      0.000000     0.000000      0.000000      0.000000
    3rd Q 2008      0.000000     0.000000      0.000000      0.000000
    Totals          0.523438     0.523438      0.000000      0.000000

None of the amounts indicated above as taxable for 2008 are classified as "excess inclusion income".

The data provided in this press release is provided for informational purposes only and does not constitute tax advice. Stockholders are urged to consult their own tax advisors regarding any issues or decisions regarding the proper tax treatment of their shares of Newcastle Investment Corp.

About Newcastle

Newcastle Investment Corp. invests in real estate debt and other real estate related assets. Newcastle is organized and conducts its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes. Newcastle is managed by an affiliate of Fortress Investment Group LLC, a global alternative asset manager with approximately $34.3 billion in assets under management as of September 30, 2008. For more information regarding Newcastle Investment Corp. or to be added to our e-mail distribution list, please visit www.newcastleinv.com.

SOURCE Newcastle Investment Corp.

Released February 2, 2009