RONKONKOMA, NY -- (Marketwire) -- 10/06/08 -- Lakeland Industries, Inc. (NASDAQ: LAKE), a
market leader in protective apparel, today announced that the company,
through its recently acquired Brazilian subsidiary Qualytextil, has
received a contract worth approximately $1 million from Companhia Pulista
de Forca e Luz, a major electrical utility in the state of Sao Paulo, for
customized protective clothing. In addition, Lakeland received a contract
from Petrobras (NYSE: PBR), Brazil's largest oil company, for approximately
$0.2 million as part of its ongoing relationship which, so far this year,
yielded approximately $1.6 million in sales. These awards build upon
existing business with Lakeland and are representative of the high-caliber
customers which came with Qualytextil. The Company also expects to sign
another similar contract within the next 45 days.
"Long term supply contracts with companies such as Petrobras provide
Lakeland greater visibility with regard to both sales and earnings -- again
highlighting the progress we've made improving our financial outlook by
expanding internationally," said Chris Ryan, the CEO of Lakeland. "As part
of our restructuring program over the past two years, Lakeland has
streamlined operations in the U.S. while adding manufacturing/sales
facilities in the rapidly growing economies of Brazil and India, opened
sales and warehousing facilities in China, Chile, and Japan, and expanded
its U.K. and Canadian operations. The contract wins in Brazil are
indicative of the many opportunities we see there, which will continue to
drive strong top line growth and margin expansion going forward. The
Company remains well positioned for further performance improvement, even
in these difficult times in the United States."
With an in-house sales force of 20 employees and nearly 30 outside sales
representatives, Qualytextil covers the entire country of Brazil, selling
directly to end users. Qualytextil markets products to major state owned
companies and agencies and the main oil and chemical companies. The
Brazilian operations, including manufacturing, sales and marketing,
warehousing, and distribution, benefit from State provided tax incentives,
favorable labor rates, and proximity to economical transportation for local
and international distribution of garments. Lakeland expects its Brazilian
sales and operating earnings to remain strong in their local currency for
the Company's fiscal third quarter ended October 31, 2008. Exchange rate
fluctuations, such as the recent strengthening of the U.S. dollar against
the Brazilian Real, may impact the Company's consolidated financial
results.
Mr. Ryan added, "Leveraging the established regional presence and marquee
customer base of our recently acquired Brazil operations, Lakeland intends
to further expand its international footprint into other Latin American
countries. We are working from a position of strength and believe that
select neighboring countries, with emerging economies and abundance of
natural resources, are ideal for us to market our diverse line of
industrial garments and will enable us to achieve superior growth rates
outside the United States in these developing nations."
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 1000 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 may 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 www.lakeland.com.
(Investor Relations)
Contacts:
Lakeland Industries
631-981-9700
Christopher Ryan
CEO
Email Contact
Gary Pokrassa
CFO
Email Contact
701-7 Koehler Avenue, Suite 7
Ronkonkoma, NY 11779
www.lakeland.com
Darrow Associates for Lakeland Industries
631-367-1866
Jordan Darrow
Email Contact