Lakeland Industries, Inc. Reports Fiscal 2013 Fourth Quarter and Full Year Financial Results RONKONKOMA, NY

Lakeland Industries, Inc. Reports Fiscal

2013 Fourth Quarter and Full Year Financial Results

RONKONKOMA, NY - May 21, 2013 --

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

healthcare and first responders on the federal, state and local levels, today announced that the Company accepted a commitment

letter from a bank for a Senior Credit Facility subject to certain terms and conditions and is currently working towards closing

this financing. However, no assurances can be given that this transaction or any transaction will be consummated.

The Company has received a letter from

The Nasdaq Stock Market notifying the Company that it is not in compliance with the Nasdaq Listing Rule 5250(c)(1) because it had

not filed its Annual Report on Form 10-K for the fiscal year ended January 31, 2013 on a timely basis with the Securities and Exchange

Commission. Under Nasdaq rules, the Company has 60 calendar days, or until July 16, 2013, to regain compliance with Nasdaq's

filing requirements for continued listing. The Company has filed its 2013 Form 10-K and believes it is now in full compliance.

Declining sales in FY13 led to quarterly losses in Brazil, which

led to the necessity of writing off all goodwill, certain intangibles, and deferred tax assets of Brazil. These factors led to

a default on the TD Bank loan, which in turn created substantial doubt about our ability to continue as a going concern. Successful

completion of the proposed new financing, in management's opinion, would relieve this condition. Thus, we engaged with new

lenders and considered other options, such as the sale of the Company, the sale of assets which has occurred, and a refinance of

the TD Bank loan. We will continue pursuing all options to maximize stockholder value.

During the course of the year:

Commenting on the financial results

and recent developments, Lakeland Industries President and Chief Executive Officer Christopher J. Ryan said, "We are

disappointed about our operations in Brazil affecting the rest of the Company in this way. Our other operations are solid,

and management is currently exploring our options in Brazil."

Year and Quarter Ended January 31, 2013, Compared to

the Year and Quarter Ended January 31, 2012

Net Sales*. Net sales

from continuing operations decreased $1.2 million, or 1.3%, to $95.1 million for the year ended January 31, 2013, compared to $96.3

million for the year ended January 31, 2012. The net decrease was mainly due to a $9.8 million decrease in domestic sales, partially

offset by a $8.6 million increase in foreign sales. The net decrease in the US was comprised mainly of a decrease in US disposables

sales, resulting from the loss of the Tyvek license from DuPont. This decrease in US sales was offset by significant increases

in foreign sales, including a $1.2 million increase in sales by Qualytextil, SA in Brazil, a $3.2 million increase in European

sales and a $1.8 million growth in combined Chile and Argentina sales. External sales from China were flat for the fourth quarter

FY13 but were up for the full year 15.7%. Sales in Brazil have decreased in Q4FY13and we expect next fiscal year's sales

to be lower in Brazil.

Net sales from continuing operations

in Q4 FY13 increased by $3.2 million, or 16.0%, to $23.4 million from Q4 of FY12. This increase was due to an increase in foreign

sales, from $10.6 million in Q4 FY12 to $11.3 million in Q4 FY13. Of these amounts, sales in Brazil were $2.7 million and $2.7 million

for Q4 of FY12 and FY13, respectively.

Gross Profit. Gross profit

from continuing operations decreased $1.5 million, or 5.1%, to $27.3 million for the year ended January 31, 2013, from $28.8 million

for the year ended January 31, 2012. Gross profit as a percentage of net sales decreased to 28.7% for the year ended January 31,

2013, from 29.9% for the year ended January 31, 2012. The major factors driving the changes in gross margins were:

Operating Expenses. Operating

expenses from continuing operations increased $1.3 million, or 4.9%, to $28.3 million for the year ended January 31, 2013, from

$27.0 million for the year ended January 31, 2012. As a percentage of net sales, operating expenses increased to 29.8% for the

year ended January 31, 2013, from 28.1% for the year ended January 31, 2012. The increase in operating expenses in the year ended

January 31, 2013, as compared to the year ended January 31, 2012, included:

Operating Profit/(Loss). Operating

profit/(loss) from continuing operations decreased by $2.7 million to $(1.0) million from $1.7 million for the prior year. Operating

profit as a percentage of net sales decreased to (1.1)% for the year ended January 31, 2013, from 1.8% for the year ended

January 31, 2012, primarily due to sharply lower volume in disposables in the US due to the termination of the Company's

Tyvek and Tychem supply agreement by DuPont, a $0.6 million charge for contract termination of the President of the Brazilian subsidiary,

issues in Brazil with the Navy and other contracts caused by a currency devaluation earlier in the year and weak volume in Brazil,

mainly due to lack of large bid contracts in Q4 of FY13. Without Brazil's FY13 operating loss of $1.6 million, the Company

would have had operating income of $0.6 million.

Interest Expense. Interest

expense increased by $0.2 million for the year ended January 31, 2013, compared to the year ended January 31, 2012, because of

term loan borrowing in 2012 to fund capital expansion in Brazil and Mexico outstanding throughout FY13 and also borrowing in Brazil

at higher rates prevailing in Brazil and the US. Further, the Company paid higher interest rates on its TD facility in FY13 as

a result of several amendments during FY13.

Other Expenses - Net. The

increase in other expenses resulted mainly from the $10.0 million write down of goodwill in Brazil and the $7.9 million arbitration

settlement, with two of the former owners of the Company's subsidiary in Brazil.

Income tax expenses from continuing operations consist of federal, state and foreign income taxes. Income tax expense

increased $5.3 million to $5.0 million for the year ended January 31, 2013, from $(0.3) million for the year ended January

31, 2012. Our effective tax rate was meaningless for the fiscal years ended January 31, 2013 and 2012. Our effective tax rate

varied from the federal statutory rate of 34% due primarily to the $7.9 million arbitration settlement in Brazil, which did

not get a tax benefit, $10.0 million goodwill and other intangibles write-off in Brazil and the establishment of a $4.5

million valuation allowance for deferred tax assets. Our income taxes in the current year were benefited by losses in the US

and a "check-the-box" US tax benefit from the losses in India at a higher rate than most of the foreign income.

Further, there was a $4.5 million valuation allowance charged to tax expense this year relating to the deferred tax

Net Income/(Loss). Net

income/(loss) from continuing operations decreased $26.9 million to a loss of $(25.8) million for the year ended January 31, 2013,

from $1.1 million for the year ended January 31, 2012. The decrease in net income was primarily a result of arbitration settlement

and goodwill and other intangibles impairment charge in Brazil (see Notes 4 and 5 for full discussion).

Continuing Operations. The

sales in Brazil in Q4 of FY13 and FY12 had no large bid sales and were $353,000 lower than the prior year. The increase in sales in other foreign jurisdictions is primarily due to the introduction of new products and new

marketing material targeting specific markets.

Factors effecting 4QFY13 results

Operations. In Q4FY12, the Company commenced its efforts to market its property in India. Based on the difficulty in

marketing this property in Q4FY13, the Company determined carrying value exceeded projected undiscounted cash flows and

recorded a loss of $800,000 to reduce carrying value to future value.

Management's Comments

Mr. Ryan continued, "Lakeland will

continue to seek to reduce operating costs, dispose of low ROI assets and increase sales. We hope to completely stabilize the Company

by the end of the third quarter with more restructuring and reduction in both debt and operating costs.

Financial Results Conference Call

Lakeland will host a conference call at

4:30 PM (EDT) today to discuss the Company's fourth quarter and full fiscal year 2013 financial results. The conference call

will be hosted by Christopher J. Ryan, Lakeland's President and CEO, and Gary Pokrassa, Lakeland's Chief Financial

Officer. Investors can listen to the call by dialing 800-860-2442 (Domestic) or 412-858-4600 (International), Pass Code

A conference call replay will be available

by dialing 877-344-7529 (Domestic) or 412-317-0088 (International), Pass Code 10029101.

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,