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Lakeland Industries Receives Two Brazilian Contracts Valued at $1.2 Million
Monday, October 06, 2008 9:00 AM
Symbols: LAKE, PBR
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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

(Source: Market Wire )



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