Carlyle Capital Corporation Limited

Carlyle Capital Corporation Continuing Discussions with Major Lenders

New York, NY – Carlyle Capital Corporation Limited (Euronext Amsterdam ticker symbol: CCC; ISIN: GG00B1VYV826) (the Company) today announced that the Company, with the assistance of The Carlyle Group, is continuing to meet with its lenders to discuss the current situation and is evaluating all available options to maximize value for all interested parties. The Company is also continuing to work with the various regulatory agencies to keep them informed of recent events.

Due to recent turmoil in the market for mortgage-backed securities, the Company’s lenders have significantly reduced the amount they are willing to lend against the Company’s portfolio of U.S. government agency AAA-rated residential mortgage-backed securities (RMBS). As a result, the Company’s lenders have issued margin calls in excess of $400 million. Furthermore, since Wednesday, March 5, the Company’s lenders have advised the Company that they believe the Company is in default under financing agreements. The Company believes that certain lenders may have liquidated in the open market the collateral securing approximately $5 billion of indebtedness. The Company has not received any deficiency notices from those lenders who sold collateral to cover the borrowings.

The Company is in ongoing negotiations with the remaining lenders, who hold approximately $16 billion in securities, and, if a mutually beneficial agreement is not reached, some of these lenders may also liquidate their securities. While these talks continue, the Company has discussed and requested a standstill agreement whereby its lenders would refrain from foreclosing and liquidating their collateral, and we are awaiting responses.

To the best of the Company’s knowledge, no creditors have instituted legal action against the Company of any kind.

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About Carlyle Capital Corporation

The Company is a Guernsey investment company that was formed on August 29, 2006 and completed its initial 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.

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