Exhibit 99.1

		NEWCASTLE INVESTMENT CORP.

Contact:

Lilly H. Donohue

Director of Investor Relations

212-798-6118

Nadean Finke

Investor Relations

212-479-5295

Newcastle Announces Second Quarter 2008 Results

Highlights

Second Quarter 2008 Financial Results

New York, NY, August 11, 2008 – Newcastle Investment Corp. (NYSE: NCT) reported that for the quarter ended June 30, 2008, Funds from Operations (“FFO”) loss and GAAP loss was $87.7 million, or $1.66 per diluted share. This compares to FFO and GAAP income of $0.64 per diluted share for the quarter ended June 30, 2007.

FFO loss and GAAP loss of $87.7 million consists of Operating Income (net of preferred dividends) of $27.7 million plus realized gains and other income of $8.7 million less impairments of $118.5 million and loss on real estate assets held for sale of $5.6 million. Operating Income return on average invested equity was 15.3%.

Book Value

Our GAAP book value increased to $(1.08) per share, or $(56.8) million at June 30, 2008, up from $(4.12) per share, or $(217.5) million at March 31, 2008. The increase in book value was primarily attributable to an unrealized market value increase in our portfolio and income generated in excess of the dividend paid in the second quarter.

Our securities portfolio is predominantly financed to maturity with long-term collateralized debt obligations (“CBOs”) that are not callable as a result of changes in value and are non-recourse to the Company. While the assets in the CBOs are consolidated on our books for GAAP purposes, our exposure to losses is limited to our investment in each CBO. Our June 30, 2008 GAAP book value reflects approximately $483.8 million of unrealized losses in assets in our CBOs that could not be realized by the Company.

We believe that a better measure of shareholder value is our adjusted book value, which marks-to-market all of our financial assets and liabilities. At June 30, 2008, our adjusted book value per share was $20.01. Our GAAP book value would equal our adjusted book value if we elected to mark all of our financial assets and liabilities to fair value under SFAS 159, “The Fair Value Option for Financial Assets and Financial Liabilities.”

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The following table compares Newcastle’s book value per share as of June 30, 2008 and March 31, 2008:

For a reconciliation and discussion of GAAP net income (loss) attributable to common stockholders to FFO, Operating Income (net of preferred dividends), and GAAP book equity to invested common equity, as well as GAAP book value to adjusted book value, please refer to the tables following the presentation of GAAP results.

Dividends

For the quarter ended June 30, 2008, Newcastle’s Board of Directors declared a dividend of $0.25 per common share. We also declared dividends on our 9.75% Series B, 8.05% Series C and 8.38% Series D Cumulative Redeemable Preferred Stock in the amounts of $0.609375, $0.503125 and $0.523438 per share, respectively.

Investment Portfolio

Newcastle’s current $6.6 billion investment portfolio consists primarily of commercial, residential and corporate debt. During the quarter, the portfolio decreased by $98.6 million primarily as a result of paydowns of $142.9 million and sales of $16.0 million, offset by purchases of $89.2 million. Of the asset paydowns, $62.0 million were commercial, $80.2 million were residential and $0.7 million were corporate.

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The following table describes our investment portfolio ($ in millions):

The following table compares certain supplemental data relating to our investment portfolio ($ in millions):

Excluding the FNMA/FHLMC securities, our weighted average net spread was 2.23% as of June 30, 2008 and 2.09% as of March 31, 2008.

Commercial Assets

We own $3.6 billion of commercial assets, which includes CMBS, mezzanine loans, B-Notes and whole loans.

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CMBS portfolio ($ in thousands):

Mezzanine loans, B-Notes and whole loan portfolio ($ in thousands):

In the quarter, we recorded an $11.2 million charge on a B-Note secured by residential land located in Mobile, AZ. Our current basis in this B-Note is now $4.9 million, and we are no longer accruing interest on this loan. Additionally, we recorded a $5.6 million charge related to two real estate properties (classified as held for sale) that were sold in the third quarter.

Residential Assets

We own $1.8 billion of residential assets, which includes manufactured housing (“MH”), residential loans, subprime securities and FNMA/FHLMC securities.

Manufactured housing loan portfolios ($ in thousands):

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Subprime securities portfolio excluding our residuals and retained interests in our own securitizations ($ in thousands):

Security Characteristics:

Collateral Characteristics:

In the quarter, we recorded a $63.2 million charge related to our $578.9 million subprime securities portfolio. The majority of the charge was related to a $46.9 million impairment on 35 of our 2005 vintage securities and a $13.3 million impairment on 17 of our 2004 vintage securities.

Residuals and retained securities

We own $80.4 million of retained securities and $13.3 million of residual interests in two subprime portfolio securitizations from 2006 (“Portfolio 1”) and 2007 (“Portfolio 2”). The following table summarizes our subprime portfolio securitizations ($ in thousands):

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In the quarter, we updated our future loan loss and prepayment assumptions. Based on current market conditions we lowered our prepayment assumptions which resulted in higher projected loan defaults and future loan losses. Under the new assumptions, our basis in the residuals was reduced by a $32.5 million impairment charge and $2.8 million return of principal. In addition, we recorded impairments of $5.4 million on the retained securities. The following summarizes the changes in our basis, prepayment assumptions and loss assumptions on both portfolios ($ in thousands):

Corporate Assets

We own $1.3 billion of corporate assets, including REIT debt and corporate bank loans.

REIT debt portfolio ($ in thousands):

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Corporate bank loan portfolio ($ in thousands):

In the quarter, we recorded a $5.6 million charge related to 2 senior bank loans.

Financing and Liquidity

In the second quarter, the Company reduced its recourse debt by $57 million and reduced its non-recourse debt by $31 million. Newcastle also increased unrestricted cash from $101 million as of March 31, 2008 to $170 million as of August 8, 2008.

The following table compares the face amount of our financings as of June 30, 2008 compared to March 31, 2008 ($ in millions):

New CFO Appointed

Effective August 13, 2008, Brian Sigman, who currently serves as the Company’s Vice President of Finance, will be appointed Chief Financial Officer of the Company. Mr. Sigman joined the Company in 2003 as Assistant Controller. Since 2006, he has served as the Company’s Vice President of Finance, during which time he has played an integral role in managing the Company’s finance and accounting group. Effective that same day, Debra Hess will resign as the Chief Financial Officer of the Company to pursue a new professional opportunity.

Conference Call

Newcastle’s management will conduct a live conference call today, August 11, 2008, at 1:00 P.M. eastern time to review the financial results for the quarter ended June 30, 2008. All interested parties are welcome to participate on

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the live call. You can access the conference call by dialing (888) 243-2046 (from within the U.S.) or (706) 679-1533 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference “Newcastle Second Quarter Earnings Call.”

A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.newcastleinv.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 telephonic replay of the conference call will also be available from 3:00 P.M. eastern time on August 11, 2008 until 11:59 P.M. eastern time on Sunday, August 17, 2008 by dialing (800) 642-1687 (from within the U.S.) or (706) 645-9291 (from outside of the U.S.); please reference access code “57632189.”

About Newcastle

Newcastle Investment Corp. owns and manages a $6.6 billion portfolio of highly diversified, credit sensitive real estate debt that is primarily financed with match funded debt. Our business strategy is to “lock in” and optimize the difference between the yield on our assets and the cost of our liabilities. 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 $35.1 billion in assets under management as of June 30, 2008. For more information regarding Newcastle Investment Corp. or to be added to our e-mail distribution list, please visit www.newcastleinv.com.

Safe Harbor

Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to our ability to acquire assets with attractive returns and the delinquent and loss rates on our subprime portfolios. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond our control; Newcastle can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Newcastle’s expectations include, but are not limited to, the risk that we can find additional suitably priced investments; the risk that investments made or committed to be made cannot be financed on the basis and for the term at which we expect; the relationship between yields on assets which are paid off and yields on assets in which such monies can be reinvested; and the relative spreads between the yield on the assets we invest in and the cost and availability of debt and equity financing. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” in the Company’s Annual Report on Form 10-K, which available on the Company’s website (www.newcastleinv.com). In addition, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. Newcastle expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

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Newcastle Investment Corp.

Consolidated Statements of Operations

(dollars in thousands, except share data)

(Unaudited)

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Newcastle Investment Corp.

Consolidated Balance Sheets

(dollars in thousands, except share data)

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Newcastle Investment Corp.

Reconciliation of GAAP Net Income (Loss) to FFO

(dollars in thousands)

(Unaudited)

We believe FFO is one appropriate measure of the operating performance of real estate companies because it provides investors with information regarding our ability to service debt and make capital expenditures. We also believe that FFO is an appropriate supplemental disclosure of operating performance for a REIT due to its widespread acceptance and use within the REIT and analyst communities. Furthermore, FFO is used to compute our incentive compensation to our manager. FFO, for our purposes, represents net income available for common stockholders (computed in accordance with GAAP), excluding extraordinary items, plus real estate depreciation, and after adjustments for unconsolidated subsidiaries, if any. We consider gains and losses on resolution of our investments to be a normal part of our recurring operations and therefore do not exclude such gains and losses when arriving at FFO. Adjustments for unconsolidated subsidiaries, if any, are calculated to reflect FFO on the same basis. FFO does not represent cash generated from operating activities in accordance with GAAP and therefore should not be considered an alternative to net income as an indicator of our operating performance or as an alternative to cash flow as a measure of liquidity and is not necessarily indicative of cash available to fund cash needs. Our calculation of FFO may be different from the calculation used by other companies and, therefore, comparability may be limited.

As a result of the sale or expected sale of all of our operating real estate, and the resultant discontinuation of depreciation, our income (loss) applicable to common stockholders is now equal to our FFO.

Newcastle Investment Corp.

Reconciliation of Operating Income (Net of Preferred Dividends)

(dollars in thousands)

(Unaudited)

Newcastle Investment Corp.

Reconciliation of GAAP Book Equity to Invested Common Equity

(dollars in thousands)

(Unaudited)

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Newcastle Investment Corp.

Reconciliation of GAAP Book Value to Adjusted Book Value

(dollars in thousands, except per share)

(Unaudited)

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