Castle Brands Acquires McLain & Kyne, Ltd.

[jbutler]

Castle Brands Acquires McLain & Kyne, Ltd.

Small Batch Bourbons Added to Growing Premium Portfolio

FOR IMMEDIATE RELEASE

October 16, 2006, New York, NY – Castle Brands Inc. (AMEX: ROX), an emerging developer and international marketer of premium branded spirits headquartered in New York, today announced the acquisition of McLain & Kyne, Ltd., a Louisville, Kentucky based developer and marketer of premium small batch bourbon brands. McLain & Kyne has three distinctive entries in the premium bourbon market: Jefferson’s Reserve, Jefferson’s and Sam Houston.

Castle Brands acquired 100% of the capital stock of McLain & Kyne on October 12, 2006, thereby causing McLain & Kyne to become a wholly-owned subsidiary of Castle Brands. Castle Brands is adding McLain & Kyne’s three premium bourbons to its expanding portfolio. Trey Zoeller (the former President of McLain & Kyne) will join the Castle Brands’ management team and will serve as Vice President – Bourbon Operations of its US subsidiary, Castle Brands (USA) Corp. Based in Louisville, he will work with the Castle Brands’ domestic and international sales teams to promote the global growth of these products. Both Trey Zoeller and his father, Chet Zoeller, are expected to continue to serve on the board of directors of McLain & Kyne.

Mark Andrews, Chairman and CEO of Castle Brands, commented: “Premium bourbon has been a high priority target category for our Company for some time, as it offers very promising growth prospects both in the US and internationally. As with other brands that we are building, we offer a very strong route to market for upscale spirits. We are very pleased to add these three exciting new brands to our portfolio and to add Trey Zoeller to our marketing and sales team. Trey and his family should be very proud of their significant accomplishments.”

Trey Zoeller added: “We view Castle Brands as an outstanding partner going forward. We have seen the growth that other brands have experienced after they have joined forces with Castle Brands. Castle Brands provides much broader sales, distribution and marketing infrastructures than are currently available to us. We believe that this will help these brands reach their full potential. It is an excellent fit, given our common focus on high-quality premium spirits, and we look forward to working together to raise the visibility of these brands on a global basis.”

More about McLain & Kyne, Ltd.

Both the McLains and the Kynes, two sides of the Zoeller family, have roots in the bourbon industry dating to the late 18th and early 19th century. McLain & Kyne currently has three small-batch Kentucky straight bourbon whiskeys: Jefferson’s, Jefferson’s Reserve and Sam Houston. These bourbons were named after two renaissance men in American history, Thomas Jefferson and Sam Houston. The whiskeys, like their namesakes and the McLain and Kyne ancestors, reflect boldness, integrity and character.

More about Castle Brands Inc.

Castle Brands is an emerging developer and international marketer of premium branded spirits within four growing categories of the spirits industry: vodka, rum, whiskey and liqueurs/cordials. Castle Brands’ portfolio includes Boru™ Vodka, Gosling’s Rum®, Sea Wynde® Rum, Knappogue Castle® Irish Single Malt Whiskey, Clontarf® Irish Whiskey, Celtic Crossing Liqueur®, Pallini® Limoncello, Raspicello and Peachcello and Brady’s Irish Cream®.

Safe Harbor Statement

All statements in this press release that are not historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by words such as “believe”, “intend,” “expect”, “may”, “could”, “would”, “will”, “should”, “plan”, “project”, “contemplate”, “anticipate”, or similar statements. Because these statements reflect Castle Brands’ current views concerning future events, these forward-looking statements are subject to risks and uncertainties. Castle Brands’ actual results could differ materially from those anticipated in these forward-looking statements as a result of many factors, including, but not limited to, demand for its products and services, its ability to compete effectively, its ability to increase revenue from its newer products and services and the other factors described under the caption “Risk Factors” in Castle Brands’ Annual Report on Form 10-K for the year ended March 31, 2006 filed with the Securities and Exchange Commission. Castle Brands undertakes no obligation to update publicly any forward-looking statements contained in this press release.