CARLSBAD, Calif.--(BUSINESS WIRE)--Aug. 14, 2009-- Orange 21 Inc. (NASDAQ:ORNG), a leading designer, producer and distributor of sunglasses, snow and motocross goggles, and branded apparel and accessories for the action sports, motorsports, snowsports and youth lifestyle markets, today announced financial results for the quarter ended June 30, 2009.

Consolidated net sales for the three months ended June 30, 2009 were $9.1 million compared to net sales of $14.0 million for the three months ended June 30, 2008. We incurred a net loss of $254,000 for the three months ended June 30, 2009, compared to a net loss of $273,000 for the three months ended June 30, 2008. The net loss for the three months ended June 30, 2009 included $129,000 in non-cash share-based compensation costs in accordance with FASB No. 123(R).

“The current recession continues to have a significant impact on our global sales,” commented Stone Douglass, the Company’s Chief Executive Officer. “During the most recent quarter, we reduced total operating expenses by approximately $2.6 million from the same period last year, and although we have had a significant decrease in sales, we have continued to maintain relatively strong gross profit margins.”

Jerry Collazo, the Company’s Chief Financial Officer, added, “During this period we continued to work with our vendors and customers and fully appreciate the difficulty everyone is undergoing.”

Concluding, Stone Douglass added, “We continue to experience a soft economy and as such we are operating cautiously and managing expenses appropriately. However, we are very excited about new opportunities that are unfolding for Orange 21 and its shareholders and are cautiously optimistic for the next several months.”

Investor Conference Call

We invite you to join us for an investor conference call on Monday, August 17, 2009 at 1:00, p.m. Pacific Daylight time. The dial-in number for the call in North America is 1-866-713-8567 and 1-617-597-5326 for international callers. The participant pass code is 88811389. The call also will be webcast live on the Internet and can be accessed by logging onto www.orangetwentyone.com.

The webcast will be archived on the Company’s website for at least 60 days following the call. An audio replay of the conference call will be available for seven days beginning approximately two hours after the completion of the call on August 17, 2009. The audio replay dial-in number for North America is 1-888-286-8010 and 1-617-801-6888 for international callers. The replay pass code is 37127211.

About Orange 21 Inc.

Orange 21 designs, develops, markets and produces premium products for the action sport, motorsports, snowsports and youth lifestyle markets. Orange 21’s primary brand, Spy Optic (TM), manufactures sunglasses and goggles targeted toward the action sports, motorsports, snowsports and youth lifestyle markets.

Safe Harbor Statement

This press release contains forward-looking statements. These statements relate to future events or future financial performance and are subject to risks and uncertainties. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “feel,” “estimate,” “predict,” “potential” or “continue,” the negative of such terms or other comparable terminology. Specifically, comments in this press release regarding our future prospects, new opportunities, potential, cost saving measures, improved efficiencies, ability to reap financial rewards from enhanced relationships with customers and vendors, organizational changes, the strength of and demand for our brand and the success of our sales and marketing initiatives, are forward-looking statements and are subject to inherent risks. These statements are only predictions. Actual events or results may differ materially. Factors that could cause actual results to differ from those contained in the forward-looking statements include, but are not limited to: the general conditions of the domestic and global economy, changes in consumer discretionary spending; changes in the value of the U.S. dollar, Canadian dollar and Euro; changes in commodity prices; our ability to source raw materials and finished products at favorable prices; risks related to the limited visibility of future orders; our ability to continue to develop, produce and introduce innovative new products in a timely manner; our ability to identify and execute successfully cost-control initiatives without adversely impacting sales; the performance of new products and continued acceptance of current products; our execution of strategic initiatives and alliances; uncertainties associated with intellectual property protection for our products; and other risks identified from time to time in our filings made with the U.S. Securities and Exchange Commission. Although, we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results. Moreover, we assume no responsibility for the accuracy or completeness of such forward-looking statements and undertake no obligation to update any of these forward-looking statements.

Source: Orange 21 Inc.

Orange 21 Inc.
Jerry Collazo, Chief Financial Officer
760-804-8420
Fax: 760-804-8442
www.orangetwentyone.com