SOURCE: Lakeland Industries, Inc.

Lakeland Industries, Inc.

July 21, 2011 09:00 ET

Lakeland Industries Receives First Purchase Order Under Contract With Maximum Value of Over $5 Million From the Brazilian Navy

RONKONKOMA, NY--(Marketwire - Jul 21, 2011) - Lakeland Industries, Inc. (NASDAQ: LAKE) today announced that it has received the first purchase order under a contract with a maximum value of over $5 million net of VAT taxes from the Brazilian Navy. The contract pertains to fire resistant coveralls developed by Lakeland specifically for use by the Brazilian Navy. It is expected that initially all Navy personnel on one ship will use the coveralls as a combat garment and during naval exercises. The initial purchase order is valued at over $500,000 net of VAT taxes.

"We are gratified to have been selected by the Brazilian Navy in a highly competitive bidding process," said Miguel G. Bastos, President of Lakeland's operating subsidiary in Brazil. "We believe this is the largest government-related contract for protective clothing ever awarded in Brazil. Lakeland was chosen as the supplier of these products because of our technical expertise, our reputation for quality excellence, and our unsurpassed customer support."

The initial proposal from Lakeland's subsidiary in Brazil was originally submitted in October 2010 and, following a competitive bidding process, won the contract that was signed in December 2010. The contract duration at the time of signing was for a one year period ending December 2011. There are no assurances that the Brazilian Navy will place orders totaling the maximum value of over $5 million net of VAT taxes, which follows terms similar to government agencies' use of indefinite delivery/indefinite quantity where an indefinite amount of supplies or services are provided during a fixed period with agreed upon pricing.

"We are pleased to announce the first purchase order under one of the largest single contracts ever awarded to Lakeland," said Christopher J. Ryan, Chief Executive Officer of Lakeland Industries.

"Furthermore, we believe the award demonstrates the execution of our global sales strategy for direct sales of branded products, targeting of end-user government, multinational and large corporate customers, and leveraging of our design and technical capabilities for business development purposes.

"Although the first purchase order under the Brazilian Navy contract was delayed due to a newly elected administration in Brazil and subsequent budgeting constraints on government agencies such as divisions of the armed forces, we anticipated the placement of an order and began production on garments during our fiscal first quarter which contributed to our previously disclosed increase in inventory. We expect to complete the fulfillment of the initial order during our third fiscal quarter, and intend to work with the Brazilian Navy on the timing and quantities for their product requirements in the future."

Based on the Brazilian Navy order and other bidding activity, Lakeland has been adding to its manufacturing and production capacity in Brazil. With a recently announced expansion in the Company's credit facility, Lakeland is in the process of investing in property and equipment as well as increasing its funding for working capital purposes. The Company is in the process of purchasing land immediately adjacent to its current facility, which will then be used for the construction of additional manufacturing facilities, perhaps in three phases over the next two years.

About Lakeland Industries, Inc.:
Lakeland Industries, Inc. (NASDAQ: LAKE) manufactures and sells a comprehensive line of safety garments and accessories for the industrial protective clothing market. The Company's products are sold by a direct sales force and through independent sales representatives to a network of over 1,200 safety and mill supply distributors. These distributors in turn supply end user industrial customers such as chemical/petrochemical, automobile, steel, glass, construction, smelting, janitorial, pharmaceutical and high technology electronics manufacturers, as well as hospitals and laboratories. In addition, Lakeland supplies federal, state, and local government agencies, fire and police departments, airport crash rescue units, the Department of Defense, the Centers for Disease Control and Prevention, and many other federal and state agencies.

Safe Harbor Statement

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements, without limitation, regarding our expectations, beliefs, intentions or strategies regarding the future. We intend that such forward-looking statements be subject to the safe-harbor provided by the Private Securities Litigation Reform Act of 1995. All statements that are not historical are forward-looking. Forward-looking statements may relate to, but are not limited to, the effect of agreements described above but also on our international and total revenues and the size and growth of the Brazilian and International markets for protective apparel. Such forward-looking statements are based upon current information and expectations. These estimates and statements speak only as of the date on which they are made, are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict.

For more information concerning Lakeland, please visit the Company online at

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