In the fiscal 2010 first quarter, the Company had net sales of $5.9 million, unchanged from the prior year period. The Company had a net loss attributable to common stockholders of $559,000, or $(0.01) per basic and diluted share, in the fiscal 2010 first quarter, compared to a net loss attributable to common stockholders of $4.3 million, or $(0.28) per basic and diluted share, in the comparable fiscal 2009 period. Net loss per basic and diluted share for the fiscal 2010 first quarter was positively impacted by the increase in common shares outstanding resulting from the October 2008 $15 million private placement and note conversion. The fiscal 2010 first quarter results included a foreign exchange gain of $1.0 million due to a weakening U.S. dollar as compared to a loss of $99,000 in the prior year period. The fiscal 2010 first quarter results also included a pre-tax, non-cash gain of $270,000 from the exchange of the Company's remaining outstanding 3% note for common shares.

U.S. case sales increased to 51,428 nine liter cases in the fiscal 2010 first quarter from 48,937 cases in the prior year period. International case sales decreased to 10,241 cases in the fiscal 2010 first quarter as compared to 18,372 cases in the prior year period. Total case sales for the fiscal 2010 first quarter were 61,669 cases as compared to 67,309 cases in the prior year period. First quarter 2010 case sales included sales of the Company's recently launched Tierras tequila, the first USDA certified organic tequila.

Richard J. Lampen, President and Chief Executive Officer, said, "We are pleased with the progress that we have made amidst challenging economic conditions. We will continue to focus on improving margins, controlling expenses and growing our own premium brands, as well as pursuing opportunistic brand acquisitions and agency relationships. We are confident that we have the right strategy in place and our May 2009 repurchase of 1,000,000 shares of Castle Brands common stock underscores our belief in our vision for the future."

John Glover, Chief Operating Officer, continued, "Our focus on sales and marketing has created positive momentum in the business on which we seek to build further. We believe our efforts to support our existing agency brands while also pursuing new agency relationships will also benefit our operations in future quarters.