Orange 21 Revises Forecast for 2005 and Schedules Third Quarter Conference Call

CARLSBAD, Calif.--(BUSINESS WIRE)--Oct. 24, 2005--Orange 21 Inc. (Nasdaq:ORNG), a leading developer of brands that produce premium products for the action sport and youth lifestyle markets, announced today that it expects revenues for 2005 in the range of $41.5 million - $42.5 million, the lower end of initial guidance and fully diluted earnings per share in the range of $0.05 to $0.09.

For the third quarter of 2005, Orange 21 forecasts revenue in the range of $10.6 million to $10.8 million and fully diluted earnings per share in the range of $0.02 to $0.03.

The revised guidance reflects a reduction in second half sales, which were impacted by several factors including the late shipment of orders due to delays in manufacturing, late deployment of point of purchase displays, a change in several international distributors and lower than expected sales in the new E Eyewear product line. Additionally, earnings were further impacted due to reduced margins as a result of the weak US dollar relative to the Euro and a slight increase in close out sales. The revised guidance includes $0.02 of dilution from the acquisition of Orange 21's eyewear manufacturer and $0.01 to $0.02 attributable to the costs of the Oakley and Class Action law suits, which had previously been excluded from guidance.

Barry Buchholtz, Chief Executive Officer, said, "While we are disappointed to announce that our 2005 performance is not meeting our expectations, we are pleased with our revenue growth and believe that our core brand is well positioned for continued growth in 2006. Although we have experienced growing pains during our first year as a public company, we continue to invest in our brands and believe we are taking the right strategic initiatives for the long term. To that end, we also announced today the acquisition of our Italian manufacturer, LEM, which will help us to achieve our revenue growth and margin improvement goals."

Quarterly Investor Conference Call

Orange 21 will release third quarter financial results on Tuesday, November 15, 2005, after the market close. The Company's Chief Executive Officer, Barry Buchholtz, and Chief Financial Officer, Michael Brower, will host an investor conference call that same day, at 1:30 p.m. Pacific Standard Time. The call will be open to all interested investors through a live audio Web broadcast via the Internet at www.orangetwentyone.com. Alternatively, investors may listen in by telephone to the conference call by dialing 800-822-4794 (international callers can dial 913-981-4912). A replay will be available beginning at 4:30 p.m. PT by calling 888-203-1112, password: 1932644 (international callers can dial 719-457-0820). For those who are not available to listen to the live broadcast, the call will be archived.

About Orange 21 Inc.

Orange 21 develops brands that produce premium products for the action sport and youth lifestyle markets. Orange 21's brands include Spy Optic(TM), which manufactures sunglasses and goggles targeted toward the action sports and youth lifestyle market, and E Eyewear(TM), which manufactures the signature Dale Earnhardt, Jr. sunglass line.

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements and forecasts about Orange 21 and its business, such as management's estimates of net sales and earnings for 2005. Because forecasts are inherently estimates that cannot be made with precision, the company's performance may at times differ from its estimates and targets.

Statements in this press release regarding financial guidance, management's statements and statements that refer to Orange 21's estimated and anticipated future results are forward-looking statements. All forward-looking statements in this press release reflect Orange 21's current analysis of existing trends and information and represent Orange 21's judgment only as of the date of this press release. Actual results may differ from current expectations based on a number of factors affecting Orange 21's business, including but not limited to, adjustments made pursuant to the final audit by our outside auditors; uncertainties associated with Orange 21's ability to maintain a sufficient supply of products and to successfully manufacture its products; the performance of new products and continued acceptance of current products; the execution of strategic initiatives and alliances; the impact of ongoing litigation; and the uncertainties associated with intellectual property protection for its products. In addition, matters generally affecting the domestic and global economy, such as changes in interest and currency exchange rates, can affect Orange 21's results. Therefore, the reader is cautioned not to rely on these forward-looking statements. Orange 21 disclaims any intent or obligation to update these forward-looking statements.

Further information on potential risk factors that could affect Orange 21's business and its financial results are detailed in its filings with the Securities and Exchange Commission, including its most recent quarterly report on Form 10-Q. Undue reliance should not be placed on forward-looking statements.

CONTACT: Orange 21, Inc.
Michael Brower, 760-804-8420
or
Integrated Corporate Relations (Investor Relations)
Andrew Greenebaum or Allyson Pooley, 310-395-2215
agreenebaum@icrinc.com
apooley@icrinc.com

SOURCE: Orange 21 Inc.