Spy Optic Signs Australian Distribution Agreement; Completing the Transition from Its Previous Distributor and Re-Establishing the Spy Optic Brand in Australia

CARLSBAD, Calif.--(BUSINESS WIRE)--March 31, 2006--Spy Optic, Inc., a wholly owned subsidiary of Orange 21 Inc. (Nasdaq:ORNG), today announced that it has signed a distribution agreement with the Marmalade Group PTY LTD.

Under the terms of the agreement, Marmalade Group becomes the exclusive distributor of all Spy Optic(TM) products in Australia. Marmalade Group will replace Monza Imports, Spy's previous Australian distributor. Marmalade Group is a leading distributor of youth lifestyle and apparel brands and will act as the exclusive distributor for all Spy Optic products.

"We are very excited about the distribution partnership with the Marmalade Group, which supports our strategy of re-establishing Spy Optic's position in the very promising Australian market," said Barry Buchholtz, Chief Executive Officer of Orange 21. "It will be a lengthy process of rebuilding the brand and its distribution network in the Australian market, but Marmalade Group has an outstanding reputation and the necessary experience in place to achieve our goals in the market, broaden the awareness of the Spy Optic brand and contribute to our future sales growth in the Australian marketplace."

"Spy Optic has a proven track record of product excellence and customer satisfaction, and we are very pleased to partner with Spy Optic to strengthen its presence in Australia," said Brian Sheedy, the Marmalade Group's Director. "We look forward to collaborating with their talented team as we help grow the business and increase Spy's brand awareness."

About Spy

Spy Optic, Inc. designs, develops and markets premium products for the action sports and youth lifestyle markets. Spy's principal products, sunglasses and goggles, target the action sports market, including surfing, skateboarding, snowboarding and motocross, and the youth lifestyle market within fashion, music and entertainment. Spy's innovative proprietary products utilize high-quality materials, handcrafted manufacturing processes and engineered optical lens technology to convey premium quality, contemporary style and progressive design. Spy Optic is a wholly owned subsidiary of Orange 21 Inc. (Nasdaq:ORNG).

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. Because forecasts are inherently estimates that cannot be made with precision, Orange 21's performance may at times differ from its estimates and targets.

Statements in this press release regarding the Australian distribution arrangement and its impact on Orange 21's future sales 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, uncertainties associated with Orange 21's ability to maintain a sufficient supply of products and to successfully manufacture its products; integration of the LEM acquisition; the performance of new products and continued acceptance of current products; the execution of strategic initiatives and alliances; the impact of ongoing litigation; uncertainties associated with intellectual property protection for its products; matters generally affecting the domestic and global economy, such as changes in interest and currency exchange rates; and other factors described in Orange 21's filings with the Securities and Exchange Commission, including its most recent quarterly report on Form 10-Q. 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.

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

SOURCE: Spy Optic, Inc.