Veterans Memorial Highway, Suite C Ronkonkoma, NY 11779 (631) 981-9700 - www.lakeland.com Lakeland Industries, Inc. Reports 29% Increase in Net Income for Fiscal 2018 Second Quarter Financial Results Balanced Top Line Gr

Lakeland Industries,

Inc. Reports 29% Increase in Net Income for Fiscal 2018 Second Quarter Financial Results

Balanced Top Line Growth from Both

Domestic and International Operations

RONKONKOMA, NY -- September 13, 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 second quarter ended July 31, 2017.

Fiscal 2018 Second Quarter Financial

Results Highlights and Recent Developments

Management's Comments

J. Ryan, President and Chief Executive Officer of Lakeland Industries, stated, "Our solid financial performance in the fiscal

2018 second quarter resulted from the implementation of a diversified growth strategy in the nearly $7 billion market for personal

protective equipment (PPE) along with effective management in all facets of our operations. While our sales in Europe, which have

been dominated by England, remain soft as a result of economic uncertainties following Brexit, the balance of our global businesses

are showing gains in sales and profitability. In the second quarter, we saw a modest improvement in the oil field services sector

which had been challenged for the past 3 years. The consolidated results are a continuation of our performance from the fourth

quarter of our last fiscal year. Moreover, in the more than 30 years that I have been involved with Lakeland, the Company has never

been better positioned and presented with more global opportunities than it is today.

to our strength, subsequent to the end of our fiscal 2018 second quarter, we raised net proceeds of approximately $9.1 million

from an offering of our common stock. This will enable us to further capitalize on the diversification and growth of our global

business. In the past, Lakeland had been singularly focused on the US market for disposable garments. In the second quarter, our

diversification has led to nearly half of our revenue coming from international sales. Once confined to high cost manufacturing

in one country, we are now producing PPE in four countries around the world. And once dependent on disposable products, we are

now a recognized global provider of comprehensive lines of disposable, chemical, fire gear, reflective and fire retardant garments.

diversification enables us to attack specific higher growing markets - by product, vertical customer orientation, and geographic

segment -- as well as to establish footholds for other operational benefits. Our strategies require investment of capital and personnel

development, which is why we have been focused on our cash management. Cash increased 27% from the beginning of the fiscal year

to $13.2 million at the end of the second quarter. The cash balance along with a portion of the net proceeds from the recent offering

of stock will be used for working capital for our growing businesses around the world and building additional overseas manufacturing

facilities and payment of capital expenditures associated with new equipment.

are now better capitalized given the Company's return to a more heightened level of cash flow generation. In addition to

the generation of $1.8 million in free cash flow or 7.5% of sales in the second quarter, our trailing twelve months free cash flow

increased by 30% from the prior period. This was achieved while investing in the development of new products, entering new geographic

and vertical markets and further spending on organizational enhancement to drive long term growth. Operating expenses in the second

quarter of $6.5 million increased by approximately $550,000 from the prior year period, which enabled us to expand in high growth

markets such as Chile, Argentina and select countries in Asia/Pacific Rim. These new territories are expected to be very advantageous

to us now and, more importantly, in the years to come.

our management team has been very mindful of its operating performance, we also are focused on improvements to the balance sheet.

Beyond the growth in our cash position, we have reduced our debt balance by $ 3.0 million since the beginning of the fiscal year.

Total debt outstanding at July 31, 2017 was $2.8 million, the lowest level in memory. At the same time, we are also enjoying the

benefits of effective income tax strategies. The combination of sales growth, operational expense management and tax benefits contributed

to our net income in the second quarter improving by 29% as compared to the prior year, while our top line grew by over 7%. Lakeland

is performing well by utilizing its diversification and attention to all facets of the business to maximize financial results."

Fiscal 2018 Second Quarter Financial

Net sales increased to $23.9 million for

the three months ended July 31, 2017 compared to $22.3 million for the three months ended July 31, 2016, an increase of 7.4%. On

a consolidated basis in U.S. currency for the second quarter of fiscal 2018, domestic sales were $12.6 million or 53% of total

revenues and international sales were $11.3 million or 47% of total revenues. This compares with domestic sales of $11.8 million

or 53% of the total, and internationals sales of $10.5 million or 47% of the total in the same period of fiscal 2017.

Sales in the US increased $0.8 million

or nearly 6%, primarily due to increased sales to strategic fire distributors of turnout gear and fire retardant ("FR")

garments, disposable products and chemical protective clothing due to demand from the oil field services and refinery sectors.

US sales of disposables increased $0.6 million, chemicals increased $0.3 million, and sales of fire products increased $0.4 million.

Sales of gloves, wovens and reflective products remained mostly level at $0.6 million, $0.9 million, and $2.1 million, respectively.

Among the Company's larger international

operations, sales in China and to the Asia Pacific Rim increased $1.3 million or more than 11% as industrial activity improved

and several larger customers began replacing depleted inventories. Sales in Canada increased to $3 million in local currency, setting

another record quarter for the Company amid strong demand for disposable garment. European sales decreased by $0.6 million, a second

sequential quarter of declines for the region, led by continued uncertainty in the UK where sales were down 22% year-over-year

due Brexit. Russia and Kazakhstan sales combined for an increase of $0.1 million or 43%, and Latin America sales increased $0.6

million or 62% due to resolution of supply chain issues and an overall increase in industrial activity.

Gross profit increased $0.1 million or

1.2% to $8.7 million for the three months ended July 31, 2017, from $8.6 million for the three months ended July 31, 2016. Gross

profit as a percentage of net sales decreased to 36.3% for the fiscal 2018 second quarter, from 38.6% for the same period of the

prior year. Major factors driving gross margins were:

Operating expense increased 9.2% from $6.0

million for the three months ended July 31, 2016 to $6.5 million for the three months ended July 31, 2017. Operating expense as

a percentage of net sales was 27.2% for the three months ended July 31, 2017 up from 26.7% for the three months ended July 31,

2016. The main factors for the higher operating expenses are increases in salary and non-cash equity compensation primarily related

to the growth in the Company's global salesforce, including a modification for performance level adjustments.

Operating income decreased to a profit

of $2.2 million for the three months ended July 31, 2017, from $2.6 million for the three months ended July 31, 2016, as most operating

expenses are fixed in nature other than commissions and freight out, and due to the increases in the operating expenses. Operating

margins were 9.1% for the three months ended July 31, 2017, compared to 11.8% for the three months ended July 31, 2016.

Net income increased to $1.8 million for

the three months ended July 31, 2017 from $1.4 million for the three months ended July 31, 2016. The results for three months ended

July 31, 2017 are primarily due to continuing cost containment efforts amid the implementation of international growth strategies

which drove operating expenses higher, increases in sales volume partially mitigated by the lower overall gross margin, and favorable

tax benefits to lower year-over-year income taxes. Income tax expense for the second quarter of fiscal 2018 was $0.3 million, compared

with $1.0 million in income tax expense for the prior year period. The decrease in tax expense was a result of higher operating

income during the three months ended July 31, 2016 and a corresponding lower foreign income recognized in the US due to lower UK

and Canadian profits, as a result of the change in corporate financing where Canada is no longer co-borrower therefore Canadian

income is not subject to inclusion in the US tax return, and a benefit resulting from the vesting of restricted stock granted under

the Company's 2015 stock plan that generated permanent tax differences in the US in the three months ended July 31, 2017.

We also have the benefit of the tax credit from the worthless stock deduction relating to our exit from Brazil, so there should

be no cash taxes in the US for the next 2 years, depending on our profitability in these periods and assuming no changes to the

U.S. tax code. We do pay local taxes on certain country operations when those operations are profitable on a local basis.

As of July 31, 2017, Lakeland had cash

and cash equivalents of approximately $13.2 million and working capital of $53.1 million. Cash and cash equivalents increased $2.8

million or 27% from the beginning of the fiscal year, while working capital increased by $5.3 million for an improvement of nearly

11%. The Company's $15 million revolving credit facility had a $0 balance as of July 31, 2017 Total debt outstanding at July

31, 2017 was $2.8 million, down from $5.8 million at January 31, 2017 and $13.4 million at January 31, 2016.

The Company incurred capital expenditures

of approximately $310,000 during the second quarter of fiscal year 2018. Capital expenditures for the first two quarters of the

fiscal year was approximately $450,000, which includes the cost for a phased global rollout of a new enterprise resource planning

No stock was acquired as part of the Company's