Carlyle Capital Corporation Limited

March 07, 2008

Carlyle Capital Corporation Limited Continues Discussions with Lenders


NEW YORK--(BUSINESS WIRE)

Carlyle Capital Corporation Limited (Euronext Amsterdam ticker symbol: CCC; ISIN: GG00B1VYV826) (the Company) announced that it is in continuing discussions with its lenders regarding the Company’s financing situation. The Company yesterday received substantial additional margin calls and additional default notices from its lenders. The Company was also notified that some of its RMBS securities had been liquidated by lenders who had previously issued default notices to the Company. It is possible that additional securities may be liquidated by the lenders.

In the past several days there has been a rapid and severe deterioration in the market for U.S. government agency AAA-rated residential mortgage-backed securities. Based on the weakened market, several of the Company’s lenders marked down the value of the Company’s RMBS securities and informed the Company that they would soon materially increase their collateral requirements.

Although the Company believed last week that it had sufficient liquidity, it was informed by its lenders this week that additional margin calls and increased collateral requirements would be significant and well in excess of the margin calls it received Wednesday. The Company believes these additional margin calls and increased collateral requirements could quickly deplete its liquidity and impair its capital.

Management is closely monitoring the situation and considering all available options for the Company.

About Carlyle Capital Corporation

The Company is a Guernsey investment company that was formed on August 29, 2006 and completed its initial public offering in July 2007. Carlyle Investment Management L.L.C. ("CIM") manages the Company pursuant to a management agreement. CIM is a registered investment adviser under the U.S. Investment Advisers Act of 1940 and is an affiliate of The Carlyle Group.

This press release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities of Carlyle Capital Corporation Limited. Certain of the information contained in this press release represents or is based upon forward looking statements or information. Forward-looking statements are inherently uncertain, and changing factors, such as those affecting the markets generally, or those affecting particular industries or issuers, may cause events or results to differ from those discussed. Therefore, undue reliance should not be placed on such statements or the conclusions drawn therefrom, which in no event shall be construed as a guarantee of future performance, results or courses of action. The Class B shares and the related restricted depository shares of the Company are subject to a number of ownership and transfer restrictions, including restrictions that limit the ability of U.S. persons to acquire or hold such securities.