CARLSBAD, CA, Dec 22, 2010 (MARKETWIRE via COMTEX) --
Orange 21 Inc. (OTCBB: ORNG) announced today that on December 16,
2010, the Company entered into an agreement to sell 90% of the
capital stock of its wholly-owned manufacturing subsidiary, LEM,
S.r.l. ("LEM"), to LEM's senior management and two of its outside
suppliers for EUR 15,000. The sale will be effective on December 31,
2010. The Company will continue to hold a 10% interest in Lem
following the sale and will continue to purchase eyewear from LEM.
The agreement provides that the Company will purchase a minimum
amount of certain goods or services from Lem during fiscal years 2011
and 2012, subject to the continued employment of Messrs. Lodigiani
and Marcassa by Lem. The minimum purchase amounts for fiscal 2011 and
2012 are at least EUR 3,717,617 and EUR 1,858,808, respectively.
A. Stone Douglass, Orange 21 Inc.'s CEO, commented, "We believe this
is an opportunity for us to refocus our primary efforts on our sales
and distribution of our multiple brands, Spy Optic(TM), O'Neil(TM),
Margaritaville(TM) and Melodies by MJB(TM) through our remaining
wholly-owned subsidiaries, Orange 21 North America Inc. and Orange 21
About Orange 21 Inc.
Orange 21 designs, develops, markets and produces premium products
for the action sports, motorsports, snowsports and lifestyle markets
under the brands Spy Optic(TM), O'Neil(TM), Margaritaville(TM) and
Melodies by MJB(TM).
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 "expect,"
"believe," or other comparable terminology. 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; failure to
successfully benefit from market and business opportunities; our
outstanding indebtedness; our ability to continue to develop, produce
and introduce innovative new products in a timely manner 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.
Orange 21 Inc.
A. Stone Douglass
Chief Executive Officer
SOURCE: Orange 21 Inc.