Carlyle Capital Corporation Continuing Discussions with Major Lenders

NEW YORK--(Business Wire)--
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.

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.

Carlyle Capital Corporation Limited
Rowland Hunt, +1 212-813-4707

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