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<SEC-DOCUMENT>0000950123-08-012430.txt : 20081009
<SEC-HEADER>0000950123-08-012430.hdr.sgml : 20081009
<ACCEPTANCE-DATETIME>20081008214655
ACCESSION NUMBER:		0000950123-08-012430
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20081008
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20081009
DATE AS OF CHANGE:		20081008

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Castle Brands Inc
		CENTRAL INDEX KEY:			0001311538
		STANDARD INDUSTRIAL CLASSIFICATION:	BEVERAGES [2080]
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32849
		FILM NUMBER:		081115136

	BUSINESS ADDRESS:	
		STREET 1:		570 LEXINGTON AVE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022

	MAIL ADDRESS:	
		STREET 1:		570 LEXINGTON AVE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>y00279e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>8-K</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 or 15(d) of the<BR>
Securities Exchange Act of 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of Report (Date of earliest event reported)<BR>
October&nbsp;8, 2008</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>CASTLE BRANDS INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in its Charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>DELAWARE</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>001-32849</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>41-2103550</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or Other Jurisdiction of <BR>
Incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer Identification<BR>
Number)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>570
Lexington Avenue,
29</B><SUP style="font-size: 85%; vertical-align: text-top"><B>th</b></SUP>
<b>Floor, New York NY 10022</B><BR>
(Address of Principal Executive Offices) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Zip Code)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Registrant&#146;s telephone number, including area code <B>(646)&nbsp;356-0200</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions (<I>see </I>General
Instruction A.2. below):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&nbsp;</div>

<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">Item&nbsp;8.01 Other Events</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">Item&nbsp;9.01 Financial Statements and Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">EXHIBIT INDEX</A></TD></TR>
<TR><TD colspan="9"><A HREF="y00279exv99w1.htm">EX-99.1: PRESS RELEASE</A></TD></TR>
<TR><TD colspan="9"><A HREF="y00279exv99w2.htm">EX-99.2: LETTER TO STOCKHOLDERS</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<!-- link1 "Item&nbsp;8.01 Other Events" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;8.01 Other Events</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;8, 2008, Castle Brands Inc. (the &#147;Company&#148;) issued a press release and sent a
letter to its stockholders announcing that (i)&nbsp;the Company is in advanced discussions with
investors led by Dr.&nbsp;Phillip Frost, one of the Company&#146;s former directors, I.L.A.R. S.p.A, the
owner of Pallini liqueurs and Vector Group Ltd. to receive a cash infusion of at least $12.5
million through a private placement (the &#147;Proposed Transaction&#148;) and (ii)&nbsp;the Company has received
from the NYSE Alternext US LLC (formerly known as the American Stock Exchange) a financial
viability exception from obtaining stockholder approval of the Proposed Transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The press release and the letter to stockholders are attached to this Form 8-K as Exhibits
99.1 and 99.2, respectively, and are incorporated in this report by reference.
</DIV>
<!-- link1 "Item&nbsp;9.01 Financial Statements and Exhibits" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01 Financial Statements and Exhibits.</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press release dated October&nbsp;8, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter to Stockholders, dated October&nbsp;8, 2008.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">CASTLE BRANDS INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Donald L. Marsh, Jr.
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Donald L. Marsh, Jr.&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President and Chief Operating Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dated: October&nbsp;8, 2008

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "EXHIBIT INDEX" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">EXHIBIT INDEX
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press release dated October&nbsp;8, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter to Stockholders, dated October&nbsp;8, 2008.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>



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</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>y00279exv99w1.htm
<DESCRIPTION>EX-99.1: PRESS RELEASE
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.1</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">FOR IMMEDIATE RELEASE
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">CASTLE BRANDS IN DISCUSSIONS TO RECEIVE CASH INFUSION<BR>
OF AT LEAST $12.5 MILLION THROUGH PRIVATE PLACEMENT
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NEW YORK, NY (October&nbsp;8, 2008) &#151; Castle Brands Inc. (AMEX: ROX), the maker of premium branded
spirits, today announced that it is in advanced discussions with investors led by Dr.&nbsp;Phillip Frost
to receive a cash infusion of between $12.5&nbsp;million and $15.1&nbsp;million. Under the proposed terms,
Castle Brands will issue and sell between 1&nbsp;million and 1.21&nbsp;million shares of newly created Series
A Convertible Preferred Stock for a price per share of $12.50. Each share of Series&nbsp;A Convertible
Preferred Stock will be convertible into 35.7143 shares of the Company&#146;s common stock. Castle
Brands expects that it will execute a definitive agreement with the investors in the next few days.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If a definitive agreement is reached, it is currently anticipated that substantially all holders of
Castle Brands (USA)&nbsp;Corp.&#146;s (a wholly owned subsidiary of Castle Brands) 9% senior secured notes,
in the principal amount of $10&nbsp;million plus accrued interest, and all holders of Castle Brands&#146;
convertible notes, in the principal amount of $9&nbsp;million plus accrued interest, will convert their
notes into shares of Series&nbsp;A Convertible Preferred Stock at a price per share of $12.50 and
$23.21, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As a result of the proposed transaction, including conversion of the notes, a total of between
approximately 78&nbsp;million and 85.6&nbsp;million shares of the Company&#146;s common stock could be issued upon
conversion of the Series&nbsp;A Convertible Preferred Stock. Following the consummation of the proposed
transaction, the holders of the Series&nbsp;A Convertible Preferred Stock would own approximately 84% of
Castle Brands on an as-converted basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The proposed transaction is a result of a four month period of detailed analysis of the Company&#146;s
opportunities and avenues to stability. During this period, the Company engaged Miller Buckfire &#038;
Co., LLC, a nationally recognized investment banking firm, as its exclusive financial advisor in
connection with prospective financing and strategic transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Although in the last 12&nbsp;months the Company has made significant reductions in its cash-burn, the
Company&#146;s cash position has remained strained. With this prospective infusion of between $12.5
million and $15.1&nbsp;million in equity and the conversion of approximately $19&nbsp;million of debt and
accrued interest to equity, the Company believes it will stabilize and be in a position to grow its
current brands, pursue new agencies and acquire additional brands. Mr.&nbsp;Mark Andrews, Chairman of
the Board, stated, &#147;The proposed transaction should place the company on a much firmer footing and
allow the company to pursue its original vision of building its own premium brands and representing
other specialty brands which should accrue to the long-term benefit of our stockholders and better
position us to achieve our goals.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Upon the execution of definitive documentation with respect to the proposed transaction, the
Company will issue a press release with respect to such execution and furnish a Current Report
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">on Form 8-K to the Securities and Exchange Commission, which would include a copy of the agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">According to the Company Guide of the NYSE Alternext US LLC (formerly known as the American Stock
Exchange), consummating the proposed transaction would ordinarily require the approval of the
Company&#146;s stockholders under Section&nbsp;713. Pursuant to Section 710(b) of the NYSE Alternext US
LLC&#146;s Company Guide, the Company has sought and received from NYSE Alternext US LLC a financial
viability exception from obtaining such stockholder approval. The Audit Committee of the Company&#146;s
board of directors, which is comprised solely of independent directors, has expressly approved the
Company&#146;s reliance on this exception, and the proposed transaction has been unanimously approved by
the Company&#146;s board.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">About Castle Brands Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Castle Brands is an emerging developer and international marketer of premium branded spirits within
five growing categories of the spirits industry: vodka, rum, tequila, whiskey and
liqueurs/cordials. Castle Brands&#146; portfolio includes Boru<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> Vodka, Gosling&#146;s Rum<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>, Sea Wynde<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> Rum,
Tierras Tequila, Knappogue Castle Whiskey<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>, Clontarf<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> Irish Whiskey, Jefferson&#146;s&#153; and Jefferson&#146;s
Reserve<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> Bourbon, Sam Houston<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> Bourbon, Celtic Crossing<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> Liqueur, Pallini<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> Limoncello&#153;, Raspicello&#153;
and Peachcello&#153; and Brady&#146;s<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> Irish Cream.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Note Regarding Forward-Looking Statements
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All statements in this press release that are not historical are forward-looking statements within
the meaning of Section&nbsp;21E of the Securities Exchange Act of 1934. Such forward-looking statements
may be identified by words such as &#147;believe&#148;, &#147;intend,&#148; &#147;expect&#148;, &#147;may&#148;, &#147;could&#148;, &#147;would&#148;, &#147;will&#148;,
&#147;should&#148;, &#147;plan&#148;, &#147;project&#148;, &#147;contemplate&#148;, &#147;anticipate&#148;, or similar statements. Because these
statements reflect Castle Brands&#146; current views concerning future events, these forward-looking
statements are subject to risks and uncertainties. Castle Brands&#146; 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 &#147;Risk Factors&#148; in Castle Brands&#146; Annual Report on Form 10-K for
the year ended March&nbsp;31, 2008 and Quarterly Report on Form 10-Q for the quarterly period ended June
30, 2008 filed with the Securities and Exchange Commission. Castle Brands undertakes no obligation
to update publicly any forward-looking statements contained in this press release.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>y00279exv99w2.htm
<DESCRIPTION>EX-99.2: LETTER TO STOCKHOLDERS
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.2</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;Letterhead of Castle Brands Inc.&#093;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">October&nbsp;8, 2008
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">VIA FIRST CLASS MAIL

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">To the Stockholders of Castle Brands Inc.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Proposed Investment in Castle Brands Inc.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Stockholder:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are writing to you today to share news concerning a proposed transaction to infuse
substantial new capital into Castle Brands Inc. (which we refer to in this letter as &#147;<I>we</I>,&#148; &#147;<I>us</I>&#148; or
&#147;<I>our</I>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are in advanced discussions, and shortly after the date of this letter, intend to enter
into an agreement, with certain investors led by Dr.&nbsp;Phillip Frost, one of our former directors,
I.L.A.R. S.p.A., the owner of Pallini liqueurs, and Vector Group Ltd., to receive a cash infusion
of between $12.5&nbsp;million and $15.1&nbsp;million. Under the proposed terms, we will issue and sell to
the investors between 1&nbsp;million and 1.21&nbsp;million shares of our Series&nbsp;A Convertible Preferred Stock
(&#147;<I>Series&nbsp;A Preferred Stock</I>&#148;) at a purchase price of $12.50 per share (we refer to this transaction
as the &#147;<I>Proposed Transaction</I>&#148;). We expect to enter into a definitive agreement with the investors
shortly after the date of this letter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Proposed Transaction, upon execution of the agreement, four of our nine
directors will resign and be replaced with four directors designated by the investors. In
addition, you will be asked to vote on the following at a special meeting that will be held on a
date to be announced:
</DIV>


<DIV style="margin-top: 6pt">
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>amendments to our charter to increase our authorized shares to 250,000,000
shares and to permit our stockholders to act by written consent and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the election of a to be determined number of directors designated by the
investors as the sole directors comprising our board of directors.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">After the amendment to our charter to increase our authorized shares is approved by stockholders,
each outstanding share of Series&nbsp;A Preferred Stock will be automatically converted into 35.7143
shares of our common stock. Therefore, the Proposed Transaction would result in the issuance of
approximately 35.7&nbsp;million to 43.2&nbsp;million shares of our common stock. We expect that the Proposed
Transaction will close approximately ten days from the date of this letter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, prior to the closing of the Proposed Transaction, we expect one of the investors
will loan us up to $2,000,000 to purchase product and pay certain accounts payable in anticipation
of our fourth quarter holiday sales. This advance would be offset against the
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">payment of the purchase price at the closing of the Proposed Transaction and would be
satisfied by the issuance of shares of the Series&nbsp;A Preferred Stock at $12.50 per share.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Proposed Transaction, substantially all of the holders of Castle Brands
(USA)&nbsp;Corp.&#146;s (our wholly owned subsidiary) 9% Senior Secured Notes, in the principal amount of
$10.0&nbsp;million plus accrued but unpaid interest, and all holders of our Amended and Restated
Convertible Notes, in the principal amount of $9&nbsp;million plus accrued but unpaid interest (we
collectively refer to these as the &#147;<I>Notes</I>&#148;), will convert their Notes into shares of Series&nbsp;A
Preferred Stock at a price per share of $12.50 and $23.21, respectively. A total of between
approximately 78 and 85.6&nbsp;million shares of our common stock could be issued upon the conversion of
the shares of Series&nbsp;A Preferred Stock to be issued pursuant to the Proposed Transaction and the
shares of Series&nbsp;A Preferred Stock to be issued pursuant to the conversion of the Notes. Following
the consummation of the Proposed Transaction, the holders of Series&nbsp;A Preferred Stock could
constitute approximately 83% of the outstanding stock of Castle Brands on an as-converted basis.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until definitive documentation is executed, neither we nor the investors have any binding
legal obligation to close the Potential Transaction. There can be no assurances that an agreement
with respect to the Potential Transaction will be reached, or, if an agreement is reached, that the
Potential Transaction will be consummated. Upon the execution of definitive documentation with
respect to the Potential Transaction, we will issue a press release with respect to such execution
and furnish a Current Report on Form 8-K to the Securities and Exchange Commission which would
include a copy of the agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;According to the Company Guide of the NYSE Alternext US LLC (formerly known as the American
Stock Exchange and referred to in this letter as the
<I>&#147;Exchange&#148;</I>), conducting the Proposed
Transaction would ordinarily require the approval of our stockholders under Section&nbsp;713. Pursuant
to Section 710(b) of the Exchange&#146;s Company Guide, we have sought and received from the Exchange a
financial viability exception from obtaining stockholder approval of the Proposed Transaction. The
Audit Committee of our Board of Directors, which is comprised solely of independent directors, has
expressly approved our reliance on this exemption and the Proposed Transaction has been unanimously
approved by our Board of Directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Proposed Transaction will raise a significant amount of equity and also convert both our
senior and junior debt into equity. The Proposed Transaction is a result of a four month period of
investigation and analysis of our opportunities and avenues to stability. During this period, we
engaged the investment banking firm Miller Buckfire &#038; Co., LLC , a nationally recognized investment
banking firm, as our exclusive financial advisor in connection with prospective financing and
strategic transactions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although in the last 12&nbsp;months we have made significant reductions in our cash-burn, our
ability to continue building our current brands and also our ability to attract new agency brands
has been frustrated by our capital position. With this prospective infusion of between $12.5
million and $15.1&nbsp;million in equity and the conversion of approximately $19&nbsp;million of debt and
accrued interest to equity, we believe we will stabilize our company and be in a position to grow
our current brands, pursue new agencies and acquire additional brands. Our
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Board of Directors believes that the Proposed Transaction will place us on a much firmer
footing and allow us to pursue our original vision of building our premium brands and
representing other specialty brands which should accrue to the long-term benefit of our
stockholders and better position us to achieve our goals.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Should you have any questions regarding the foregoing, please feel free to contact Mark
Andrews, our Chairman of the Board, at (646)&nbsp;391-1150.
</DIV>


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    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Sincerely,<BR>
<BR>
CASTLE BRANDS INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Mark Andrews
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Mark Andrews&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Chairman of the Board&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">cc: NYSE Alternext US LLC
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Note Regarding Forward-Looking Statements
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All statements in this letter that are not historical are forward-looking statements within the
meaning of Section&nbsp;21E of the Securities Exchange Act of 1934. Such forward-looking statements may
be identified by words such as &#147;believe&#148;, &#147;intend,&#148; &#147;expect&#148;, &#147;may&#148;, &#147;could&#148;, &#147;would&#148;, &#147;will&#148;,
&#147;should&#148;, &#147;plan&#148;, &#147;project&#148;, &#147;contemplate&#148;, &#147;anticipate&#148;, or similar statements. Because these
statements reflect our current views concerning future events, these forward-looking statements are
subject to risks and uncertainties. Our 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 &#147;Risk Factors&#148; in Castle Brands&#146; Annual Report on Form 10-K for the year ended March&nbsp;31,
2008 and Quarterly Report on Form 10-Q for the quarterly period ended June&nbsp;30, 2008 filed with the
Securities and Exchange Commission. Castle Brands undertakes no obligation to update publicly any
forward-looking statements contained in this letter.
</DIV>



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