BOSTON, MA, and CLEVELAND, OH--(Marketwire - February 24, 2010) - Costa Brava Partnership III L.P., Ramat Securities, Ltd., and Southern Strategic Partners, LP, all preferred shareholders of Newcastle Investment Corp. (NYSE: NCT) indicated today their support for Newcastle's Offer to Exchange, which was filed by Newcastle with the SEC and announced on Monday, February 22, 2010. Costa Brava, Ramat and Southern Strategic all intend to tender all their preferred shares in the exchange offer.

Pursuant to Newcastle's exchange offer, Newcastle is proposing to tender approximately 70% of the preferred shares in exchange for cash and common shares. According to the exchange offer, Newcastle expects to pay accumulated and unpaid dividends to any remaining outstanding preferred shares that are not purchased in the exchange offer.

"We believe the new exchange offer is fair and a good deal for preferred shareholders," commented Seth Hamot, a principal with Costa Brava. "We anticipate that most preferred shareholders will tender their shares, and Costa Brava would welcome the pro-ration of its tendered shares if in excess of 70% of the preferred shareholders tender their shares. I believe that Newcastle's plan to pay accumulated and unpaid dividends through the end of April on any remaining preferred shares is both fair and consistent with the terms of the preferred shares."

Howard Amster, a principal with Ramat, explained: "The opportunity to receive common shares in the exchange makes this offer particularly attractive to Ramat. Following the exchange offer, preferred shareholders have an opportunity to participate in Newcastle's business through both their ownership of common stock and their remaining preferred shares. It is a win-win situation for both sets of shareholders."

Mr. Hamot concluded, "This deal does 'pencil out.' I believe Newcastle is a business with good prospects and Costa Brava looks forward to participating as a common shareholder."

About Seth Hamot

Seth W. Hamot is the President at RRH Capital Management Inc., a special situations investor based in Boston, and the manager of Costa Brava Partnership III L.P. He has deep experience in turn-arounds and corporate governance having served as a director at numerous companies, including Bradley Pharmaceuticals, Telos, Orange 21, Tech Team Global and CCA Industries, including as chairman and on audit and compensation committees.

About Howard Amster

Howard Amster is an accomplished investor that has over 40 years of business and investing experience, including significant experience in real estate, the securities industry, and financial services. He is a major investor in apartment properties. He is a member of the excecutive committee of Horizon Group Properties where he is also the largest shareholder. Mr. Amster is also a principal at Ramat Securities, Ltd. and has served on multiple corporate boards including those of four financial institutions.

About Southern Strategic Partners LP

Southern Strategic Partners LP is a private investment partnership managed by Hugh W. Entrekin. Mr. Entrekin is a practicing transactional attorney and has over 30 years of business and investment experience in real estate and public and private securities investments. Mr. Entrekin serve on several private company boards and lives and works in Nashville, Tennessee.

Contact Information: Contact: RRH Capital, Inc Costa Brava Partnership III L.P. Seth Hamot: 617-595-4405