701-7 Koehler Avenue, Suite 7 - Ronkonkoma,

701-7 Koehler Avenue, Suite 7 - Ronkonkoma,

(631) 981-9700 - www.lakeland.com

Lakeland Industries Inc. Announces Brazil

Financing and Consulting Agreement

RONKONKOMA, NY - August 28, 2014

- Lakeland Industries, Inc. (NASDAQ: LAKE), a leading global manufacturer of industrial protective clothing for industry,

municipalities, healthcare and to first responders on the federal, state and local levels, today announced completion of the first

phase of the refinancing of Lakeland Brazil. Through an agreement signed with Multiplica Solu es Empresariais

Ltda ("Multiplica"), a private equity turnaround specialist based in Brazil with direct experience in the protective

apparel business, Lakeland Brazil has been collateralized for and assisted with securing lending facilities with Brazilian lenders.

Lakeland Brazil, a wholly-owned subsidiary

of Lakeland Industries, has received from Multiplica assistance in securing initial financing in order to alleviate cash flow constraints,

thereby enabling Lakeland's Brazilian unit to grow its sales and potentially return to profitability. Assistance from Multiplica

is anticipated to take the form of, but is not limited to, loan guarantees on behalf of Lakeland Brazil to various financial institutions,

strategies relating to payment of invoices, financing of accounts receivable, factoring, and negotiations with suppliers and banks.

Fees paid by Lakeland Brazil to

Multiplica will be based upon an agreed formula of the greater of approximately US$11,000 per month or 10% of the EBITDA of

the Brazil subsidiary calculated quarterly as compensation for the financial backing, security pledge and ongoing advisory

services, which includes the provision of a separately compensated in-house financial analyst working for Lakeland Brazil.

Compensation commenced due to the opening of financial lending facilities that are being collateralized by Multiplica

assets. In addition, Multiplica will be entitled to 10% of the proceeds upon any future sale of Lakeland Brazil by Lakeland

Industries. Fees due to Multiplica and indebtedness incurred by Lakeland Brazil through this agreement are non-transferrable

to the parent company, Lakeland Industries, which will remain unencumbered by the Company's Brazilian unit.

"We are pleased to announce this

significant step in establishing Lakeland Brazil as financially self-sustaining," said Christopher J. Ryan, President and

Chief Executive Officer of Lakeland Industries. "Lakeland Brazil remains an important asset in our global operations, although

we are now emerging from what has been a nearly three-year period of operational and financial challenges. With the assistance

of Multiplica, our turnaround of Lakeland Brazil is nearly complete, yet it was imperative to maintain the integrity of the balance

of our worldwide operations. To this end, Lakeland Brazil has for most practical purposes already been separated from the consolidated

financial performance of Lakeland Industries as it relates to commercial lender negotiations. The agreement with Multiplica maintains

this strategy and represents a very acceptable arrangement for parent-company risk management purposes and subsidiary-level growth

initiatives. As the final phases for refinancing Lakeland Brazil, we have established lending facilities in Brazil and, with

that now in place, expect to be able to operate unfettered in building a growing business and a credit rating worthy of more permanent

Pursuant to this agreement, Multiplica has enabled several smaller

loans to be completed utilizing their guaranty. The agreement with Multiplica took effect on August 27 when the cumulative loans

they assisted in obtaining reached $R500,000 (approximately USD 217,000).

The agreement with Multiplica is cancellable by Lakeland Brazil

on 180 days' notice or by Multiplica on 60 days' notice. Should the agreement be cancelled, Lakeland Brazil will

have 180 days in which to either repay or remove the guaranty for any obligations guaranteed by Multiplica.

Additional details pertaining to the agreement

with Multiplica are reflected in Lakeland Industries Current Report on Form 8-K filed today with the Securities

and Exchange Commission.

Multiplica is a Brazilian private

equity firm that specializes in turnaround situations. They concentrate only on a few companies at a time and get deeply

involved in their strategy and day to day operations, utilizing their capital to guaranty bank loans which would otherwise not

be available to their client companies, and also help with restructuring and revitalizing the business. In our case they

also intend to work to resolve our VAT tax situation.

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 1,200

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 many other

federal and state agencies. For more information concerning Lakeland, please visit the Company online at www.lakeland.com.

"Safe Harbor" Statement under

the Private Securities Litigation Reform Act of 1995: Forward-looking statements involve risks, uncertainties and assumptions as

described from time to time in Press Releases and Forms 8-K, registration statements, quarterly and annual reports and other reports

and filings filed with the Securities and Exchange Commission or made by management. All statements, other than statements of historical

facts, which address Lakeland's expectations of sources or uses for capital or which express the Company's expectation

for the future with respect to financial performance or operating strategies can be identified as forward-looking statements. As

a result, there can be no assurance that Lakeland's future results will not be materially different from those described

herein as "believed," "projected," "planned," "intended," "anticipated,"

"estimated" or "expected," or other words which reflect the current view of the Company with respect to

future events. We caution readers that these forward-looking statements speak only as of the date hereof. The Company hereby expressly

disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change

in the Company's expectations or any change in events conditions or circumstances on which such statement is based.