Veterans Memorial Highway, Suite C Ronkonkoma, NY 11779 (631) 981-9700 - www.lakeland.com Lakeland Industries, Inc. Reports Strong Growth in Revenues, Profits and Free Cash Flow for Fiscal 2018 First Quarter Financial Re

Lakeland Industries,

Inc. Reports Strong Growth in Revenues, Profits and Free Cash Flow for Fiscal 2018 First Quarter Financial Results

RONKONKOMA, NY - June 14, 2017 --

Lakeland Industries, Inc. (NASDAQ: LAKE) (the "Company" or "Lakeland"), a leading global manufacturer of

protective clothing for industry, healthcare and to first responders on the federal, state and local levels, today announced financial

results for its fiscal 2018 first quarter ended April 30, 2017.

Fiscal 2018 First Quarter Financial

Management's Comments

J. Ryan, President and Chief Executive Officer of Lakeland Industries, stated, "In the first quarter of fiscal 2018 we delivered

strong growth in revenues, profits and free cash flow. The improvements in financial results and many operating performance measures

reflect our management team's successful implementation of key strategic initiatives that build upon the progress made in

the fourth quarter of fiscal 2017.

strategic imperatives are directed at improving our global presence and competitiveness while executing with operational effectiveness.

As a result, we delivered with growth in profitability and cash flow, which benefited from our ability to take greater control

of our costs and expense levels. At the same time, while we continued to optimize our balance sheet, we have been able to enhance

our position through investments in product development and penetration of new vertical markets."

have been leveraging the advantages of our unique operating platform to deliver top line growth in excess of our addressable global

market while demonstrating operating leverage as one of the most advanced and lean personal protective

equipment (PPE) manufacturers

with a global presence. We peg our global market growing at an estimated annual rate of between 2% to 7%, which our growth exceeded

in the first quarter. We are performing well and have been positioning the Company to take advantage of the significant opportunities

for continued growth on a global basis."

"Both domestic and international

revenue increased in the first quarter as the dollar modestly strengthened from the prior year in many of the markets in which

we operate, while consolidated in-country sales in local currencies increased from the prior year period. Approximately $12.7 million

in domestic sales for key product lines remained flat in the quarter due to continued weakness in the oil and gas sector, but our

profitability was enhanced as we transitioned away from lower margin subset markets. We have been placing concerted emphasis on

allocating our resources toward higher margin products using modifications of existing product lines to create new, higher margin

garments sold into new vertical markets. This capability is somewhat unique to Lakeland because we own our own manufacturing facilities

and employ a highly trained workforce spanning five countries on three continents."

"The increases in gross profits and

gross margin as a percentage of net sales in the first quarter were driven by sales of higher margin products targeted at new vertical

markets and a more favorable product mix along with successful labor and raw material cost management. Operating income improvements

reflect lower costs overall which were partially offset by increased spending on new product development and more progressive marketing

campaigns including additions to our global salesforce. For a second consecutive quarter we decreased our year-over-year operating

revenues and improvements in our cost structure have allowed us to further strengthen our balance sheet even while we invested

in future growth opportunities. Inventories declined by 10% from the beginning of the period, although we have reduced the total

number of different sku(s) we carry while slowly introducing new products which have seen gradual ramping of sales. Free cash flow

absent exigent revenue generating circumstances came in at the highest quarterly level in years at $2.2 million, an increase of

approximately 200% from the first quarter of fiscal 2017. The Company's cash balance at April 30, 2017 was in excess of $11.8

million, an increase of 14% from the beginning of the fiscal year. During the same period, total debt was reduced by 47% to $3.1

a strengthened balance sheet, all major global operations turning a profit in the first quarter and productivity and market share

enhancement strategies in place, we are well positioned for continued growth during the balance of the year and beyond."

Fiscal 2018 First Quarter Financial

Net sales increased to $23.0 million for

the three months ended April 30, 2017 compared to $20.4 million for the three months ended April 30, 2016, an increase of 12.7%.

On a consolidated basis in U.S. currency for the first quarter of fiscal 2018, domestic sales were $12.7 million or 55% of total

revenues and international sales were $10.3 million or 45% of total revenues. This compares with domestic sales of $12.2 million

or 60% of the total, and internationals sales of $8.2 million or 40% of the total in the same period of fiscal 2017.

Sales in the USA increased $0.5 million

or over 4%, primarily due to increased sales to strategic fire distributors and increased sales in the fire retardant ("FR")

woven coveralls market. USA sales of disposables, chemicals, and reflective apparel were $10.2 million, while wovens and fire protection

sales combined for an increase of $700,000 or 38.6%, mostly due to focused penetration of strategic fire distributors who support

and market the Company's fire gear and increased sales of FR garments.

Among the Company's larger international

operations, sales in China and to the Asia Pacific Rim increased $2.1 million or 25% as industrial activity improved and several

larger customers began replacing depleted inventories. Canada sales remained level at $1.8 million as that country continues to

experience an oil and gas turnaround requiring protective wear. UK sales decreased by $0.3 million or 10.7% mostly due to uncertainty

in the economy as a result of Brexit which also impacted its currency when reported in the U.S. Russia and Kazakhstan sales combined

increased $0.1 million or 16.5%, and Latin America sales increased $0.7 million or 84.4% due to resolution of supply chain issues

and an overall increase in industrial activity.

Gross profit increased $1.8 million or

26.3% to $8.6 million for the three months ended April 30, 2017, from $6.8 million for the three months ended April 30, 2016. Gross

profit as a percentage of net sales increased to 37.3% for the period ended April 30, 2017, from 33.3% for the three months ended

April 30, 2016. Major factors driving gross margins were:

Operating expenses decreased 7.9% from

$6.6 million for the three months ended April 30, 2016 to $6.1 million for the three months ended April 30, 2017. Operating expense

as a percentage of net sales was 26.5% for the three months ended April 30, 2017, an improvement from 32.4% for the three months

ended April 30, 2016. The main factors for the decrease in operating expenses are a $200,000 decrease in payroll administration

and a $200,000 decrease in officer salaries resulting from the reversal of payroll accruals and the reduction of one officer due

to retirement and one vice president due to resignation, partially offset by a $100,000 increase in commissions based on higher

Operating income increased to $2.5 million

for the three months ended April 30, 2017, from $169,000 for the three months ended April 30, 2016, mainly as a result of stronger

sales volume and reduced operating expenses. Operating margins were 10.8% for the three months ended April 30, 2017, compared to

0.8% for the three months ended April 30, 2016.

Net income increased to $1.7 million for

the three months ended April 30, 2017 from nominal net income of $3,000 for the three months ended April 30, 2016. The results

for three months ended April 30, 2017 are primarily due to higher sales volume than in the prior period as well as continuing cost

containment efforts.

As of April 30, 2017, Lakeland had cash

and cash equivalents of approximately $11.8 million and working capital of $49.9 million. Cash and cash equivalents increased $1.5

million or 14.4% from the beginning of the fiscal year, while working capital increased by $2.1 million for an improvement of 4.4%.

The Company's $15 million revolving credit facility had $2.4 million of borrowings outstanding as of April 30, 2017, a reduction

of 51% from the outstanding amount of $4.9 million at the beginning of the fiscal year, and availability of $12.6 million at the

start of the fiscal 2018 second quarter. Total debt outstanding at April 30, 2017 was $3.1 million, down from $5.8 million at January

31, 2017 and $13.4 million at January 31, 2016. In May 2017, the Company entered into a new loan facility providing for greater

availability and improved terms.

The Company incurred capital expenditures

of approximately $141,000 during the first quarter of fiscal year 2018. Total capital expenditures for the fiscal year is budgeted

at approximately $1.0 million, which includes the cost for a phased global rollout of a new enterprise resource planning ("ERP")

No stock was acquired as part of the Company's

$2.5 million stock repurchase program which was approved on July 19, 2016.

Financial Results Conference Call

Lakeland will host a conference call at

4:30 pm eastern today to discuss the Company's fiscal 2018 first quarter financial results. The call will be hosted by Christopher

J. Ryan, Lakeland's President and CEO, and Teri W. Hunt, Lakeland's Chief Financial Officer. Investors can listen to

the call by dialing 888-347-6609 (Domestic) or 412-902-4291 (International) or 855-669-9657 (Canada).

For a replay of this call through June

21, 2017, dial 877-344-7529 (Domestic) or 412-317-0088 (International) or 855-669-9658 (Canada), Pass Code 10107597.