Carlyle Capital Corporation Limited Issues Update on Its Liquidity

NEW YORK--(Business Wire)--
Carlyle Capital Corporation Limited (Euronext Amsterdam ticker
symbol: CCC; ISIN: GG00B1VYV826) (the "Company") today announced that
since filing its annual report on February 28, 2008, the Company has
been subject to margin calls and additional collateral requirements
totaling more than $60 million. Until March 5, the Company had met all
of the margin requirements imposed by its repo counterparties.
However, on March 5, the Company received additional margin calls from
seven of its 13 repo counterparties totaling more than $37 million.
The Company has met margin calls from three of these financing
counterparties that have indicated a willingness to work with the
Company during these tumultuous times, but did not meet the margin
requirements of the four other repo financing counterparties. From
this group of four counterparties, one notice of default has been
received by the Company and management expects to receive at least one
additional default notice.

John Stomber, Chief Executive Officer, President and Chief
Investment Officer of the Company, said, "The last few days have
created a market environment where the repo counterparties' margin
prices for our AAA-rated U.S. government agency floating rate capped
securities issued by Fannie Mae and Freddie Mac are not representative
of the underlying recoverable value of these securities.
Unfortunately, this disconnect has created instability and variability
in our repo financing arrangements. Management is actively working
with the Company's repo counterparties to develop more stable
financing terms."

Since the liquidity crisis in global fixed income markets started
in August, the Company has sold almost $1 billion in non-RMBS assets
to improve liquidity and reduce leverage. The Company has also
received significant support from The Carlyle Group, most notably in
the form of a $150 million subordinated revolving credit line.

About Carlyle Capital Corporation

The Company is a Guernsey investment company that was formed on
August 29, 2006. The Company's long-term objective is to achieve
attractive risk-adjusted returns for shareholders primarily through
current income and, to a lesser extent, capital appreciation. In the
future, management will seek to achieve this objective by investing in
a diversified portfolio of fixed income assets consisting of mortgage
products and leveraged finance assets. Management employs leverage to
finance the Company's investments and its income is generated
primarily from the difference between the interest income earned on
our assets and the costs of financing those assets.

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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