Castle Resorts & Hotels Acquires New Contract with Queen Kapiolani Hotel

HONOLULU--(Business Wire)--The Castle Group, Inc. (OTCBB:CAGU) today announced that its
subsidiary Castle Resorts & Hotels has been selected as the management
company for the Queen Kapiolani Hotel to handle sales, marketing and
reservations, effective December 1, 2007.

"The addition of Queen Kapiolani Hotel to our portfolio follows
our strategic growth plan of increasing our inventory both
internationally and in Hawaii," said Alan Mattson, president and chief
operating officer of Castle Resorts & Hotels. "Our presence in Waikiki
has more than doubled in the past year with the addition of over 1,300
rooms to our Waikiki inventory during 2007."

This is Castle's fifth Waikiki hotel and continues a pattern of
consistent and strategic growth for the company. Earlier this year, it
was also awarded contracts for Maile Sky Court and Ocean Resort
Waikiki on Oahu and for Hotel Santa Fe in Guam. By the end of 2007, it
will also manage two properties in Thailand. These additions increase
Castle's portfolio to 26 hotels and condominium resorts throughout
Hawaii, Micronesia, New Zealand and Thailand.

Named for Hawaii's beloved Queen Kapiolani, the 315-room hotel is
located at 150 Kapahulu Avenue. The hotel offers breathtaking views of
Oahu's two most famous landmarks - Diamond Head and Waikiki Beach. It
is also conveniently located near popular attractions including
Waikiki Aquarium and Honolulu Zoo. Queen Kapiolani Hotel offers a
variety of options for travelers, including standard guest rooms,
studios with kitchenettes and one-bedroom suites. Guests will enjoy
the Garden Lanai Restaurant, which serves breakfast, lunch and dinner.
For those seeking meeting facilities, the Garden Lanai Restaurant,
Peacock Dining Room and Akala Ballroom are available.

Castle Resorts & Hotels was founded in 1994 and is a wholly-owned
subsidiary of The Castle Group, Inc. Castle manages a broad portfolio
of resort accommodations ranging from hotel guest rooms to spacious
resort condominium suites and villas in the Hawaiian Islands on Oahu,
Maui, Molokai, Kauai and Hawaii; in Thailand on Phuket; in Micronesia
on Guam and Saipan; and in New Zealand on the North Island. For more
information or reservations, please call 1-800-367-5004 or visit
www.CastleResorts.com.

This press release contains forward-looking statements made under
the "safe harbor" provisions of the U.S. Private Securities Litigation
Reform Act of 1995.

Forward looking statements are based upon the current plans,
estimates and projections of The Castle Group's management and are
subject to risks and uncertainties which could cause actual results to
differ from the forward looking statements. These include, but are not
limited to, risks and uncertainties related to the Company's strategic
growth plan and other risks and uncertainties outlined in the
Company's periodic filings with the U.S. Securities and Exchange
Commission. The Castle Group does not assume any obligation to update
the information contained in this press release.

Note: High-resolution images and logo are available upon request.

Media Contact:
McNeil Wilson Communications
Melissa Malahoff-Kamei, Sr. Acct. Executive
808-539-3435
Cellular: 808-221-6439
Melissa.Malahoff@mwc-anthology.com
or
Investor Relations Contact:
CCG Investor Relations
Christi Mottola, Managing Partner
949-851-1109
Fax: 949-223-0028
Christi.Mottola@ccgir.com

Copyright Business Wire 2007