Carlyle Capital Corporation Unable To Reach Agreement With Lenders

Lenders Likely to Take Possession of Remaining Assets
NEW YORK--(Business Wire)--
Carlyle Capital Corporation Limited (Euronext Amsterdam ticker
symbol: CCC; ISIN: GG00B1VYV826) (the Company) today announced that,
although it has been working diligently with its lenders, the Company
has not been able to reach a mutually beneficial agreement to
stabilize its financing. The Company expects that its lenders will
promptly take possession of substantially all of the Company's
remaining assets.

The only assets held in the Company's portfolio as of today are
U.S. government agency AAA-rated residential mortgage-backed
securities (RMBS). During the last seven business days, the Company
received margin calls in excess of $400 million. As the Company was
unable to pay these margin calls, its lenders proceeded to foreclose
on the RMBS collateral. In total, through March 12, the Company has
defaulted on approximately $16.6 billion of its indebtedness. The
remaining indebtedness is expected soon to go into default.

The Company explored a variety of proposals with its lenders in an
attempt to refinance its portfolio on sustainable terms. The Carlyle
Group participated actively in those negotiations and was prepared to
provide substantial additional capital if a successful refinancing
could be achieved. Negotiations deteriorated late on March 12 when,
among other things, the pricing service utilized by certain lenders
reported a drop in the value of the RMBS collateral that is expected
to result in additional margin calls tomorrow of approximately $97.5
million.

Overall, it has become apparent to the Company that the basis on
which lenders are willing to provide financing against the Company's
collateral has changed so substantially that a successful refinancing
is not possible.

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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