SOURCE: Leatt Corporation

June 08, 2009 10:37 ET

Leatt Corporation Announces Profit in First Quarter FY 2009

CAPE TOWN, SOUTH AFRICA--(Marketwire - June 8, 2009) - Leatt Corporation (PINKSHEETS: LEAT) (Company), a Nevada corporation, today announced unaudited financial results for its fiscal 2009 first quarter ended March 31, 2009. The Company posted net quarterly profit of $502,862 on gross revenues of $4,345,323. These results compare to revenues of $5,996,039 and net quarterly profit of $1,308,388 in the year-ago quarter. Gross average margin on our neck braces was 68.3% compared to 68.0% a year-ago quarter. International sales accounted for 59% of the quarter's revenues. Financial results are posted on our corporate web site at www.leatt-corp.com. Reported results are unaudited for the First Quarter FY 2009.

CEO Chris Leatt stated that: "Despite the drop in profitability on a quarter-to-quarter year ago basis, we still made a profit in what we believe is one of the worst financial periods in modern history with our new marketing efforts to penetrate new market niches in the United States and Europe in 2009. While an improvement in the world economy is essential to any significant improvement of our financial results, we are not waiting for such a turnaround. Instead, we are pursuing an aggressive new market penetration and expansion into new geographic markets. We will keep you posted on our web site about our progress in this challenging endeavor. "

About the Company: The Company is the exclusive global maker and distributor of the Leatt-Brace®, a Neck Brace designed to prevent or lessen the severity of potentially devastating motor sport injuries to the cervical spine (neck). The Company's operations and research and development of the core products currently take place at the Company's offices in Cape Town, South Africa.

For more information on the Leatt-Brace®, please visit the Company web site at www.leatt-brace.com. Any web site or any portion thereof referenced herein is not part of this press release.

This press release contains forward-looking statements including without limitation those about the Company's future financial performance. In some cases forward-looking statements may be identified by forward-looking words like "would," "intend," "hope," "will," "may," "should," "expect," "anticipate," "believe," "estimate," "predict," "continue," or similar words. Forward-looking statements involve risks and uncertainties which could cause actual outcomes and results to differ materially from the Company's expectations, forecasts and assumptions. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company's reaction to those factors, on consumer and business buying decisions with respect to the Company's products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new products and technological innovations on a timely basis; the effect that product transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company's gross margin; the inventory risk associated with the Company's need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company's business currently obtained by the Company from sole or limited sources; the effect that the Company's dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; the potential impact of any finding that the Company has infringed on the intellectual property rights of others; the effect that any product and service quality problems could have on the Company's sales and operating profits; war, terrorism, public health issues, and other circumstances that could disrupt supply, delivery, or demand of products; the continued service and availability of key executives and employees; possible unfavorable results of other legal proceedings; and the Company's dependency on the performance of distributors and other resellers of the Company's products. More information on potential factors that could affect the Company's financial results is included from time to time in the Company's public disclosures on its corporate web site: http://www.leatt-corp.com. The Company's common stock is traded on the Pink Sheet system and the Company is a "penny stock company" as defined under the rules of the Securities Exchange Act of 1934, as amended. As such, there are additional, substantial risks associated with the Company and its securities. Such risks include limited liquidity of the Company's common stock and limitations on ability of broker-dealers to trade or recommend such stock. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

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