Revenue But No Profit for Orange 21 (OTC:ORNG)

Orange 21 Inc. (OTC:ORNG) announced today, in a press release, that it released financial results for the year ended December 31, 2010. Shares of Orange 21 closed yesterday at $1.85 per share and average a very light 2,400 shares traded per day. The company has a market cap of $22 million and a 52-week range between $0.25 and $2.25 per share.

Consolidated net sales increased 2% to $35.0 million for the year ended December 31, 2010 from $34.2 million for the year ended December 31, 2009. Consolidated gross profit increased 21% to $16.8 million for the year ended December 31, 2010 from $13.8 million for the year ended December 31, 2009.

Consolidated net losses of $4.6 million and $3.4 million were incurred for the years ended December 31, 2010 and 2009, respectively. The year ended December 31, 2010 included (1) a $1.4 million loss on the deconsolidation of LEM as a result of the sale of 90% of our equity interest in LEM on December 31, 2010 and (2) $1.2 million in additional direct operating expenses related to the addition of the Margaritaville and Melodies by MJB eyewear brands for which there have been minimal sales during this period.

"We are pleased with our results for 2010 even though we had substantial direct and indirect additional operating costs related to our two newest brands, Margaritaville and Melodies by MJB, for which there have been minimal sales during this period," commented Stone Douglass, the Company's Chief Executive Officer. "Gross margins increased to 48% for the year ended December 31, 2010 from 40% during the comparable period in 2009, aided by more effective sourcing in Asia, and improved operations and a more favorable Euro to U.S. Dollar exchange rate on purchases from our Italian manufacturer, LEM."

Orange 21 designs, develops, markets and produces premium products for the action sports, motorsports, snowsports and lifestyle markets under the brands Spy Optic, O'Neill, Margaritaville and Melodies by MJB.

For more information, please visit: www.orangetwentyone.com.

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