UPDATE: Lakeland Industries Announces $11.2M Private Placement

Lakeland Industries, Inc.

, 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 that it has entered into a definitive securities purchase agreement to raise approximately $11.2 million in a private placement of common stock sold at a price of $10.00 per share. Proceeds from the financing will be used to fully repay Lakeland's 12% subordinated term loan with LKL Investments, LLC in the approximate amount of $3.6 million. The balance of the proceeds will be used for working capital and general corporate purposes, including supporting the increased demand for Lakeland's safety products due to the EBOLA crisis. Pending such usage, Lakeland intends to temporarily pay down its senior revolving credit facility with AloStar Bank of Commerce. Christopher J. Ryan, the CEO of Lakeland Industries, Inc., stated "This offering provides us with the capital we need to turn our attention to our core businesses and pay down expensive debt. Funding will go toward expanding our production capacity for our ChemMAX® and MicroMAX® protective suit lines in order to keep up with the significant global demand we have seen from governments, health organizations, and hospitals currently purchasing our fluid and pathogen resistant certified hazmat suits and other accessory items such as boots, sleeves, and aprons used in the fight against EBOLA." Pursuant to a registration rights agreement, Lakeland is required to file a registration statement for the resale of the shares of common stock issued. The offering is expected to close next week, subject to satisfaction of customary closing conditions. Craig-Hallum Capital Group LLC is acting as exclusive placement agent in connection with this offering. The shares of common stock to be sold in the private placement have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent effective registration with the Securities and Exchange Commission (SEC) or an applicable exemption from such registration requirements. Lakeland has agreed to file a registration statement with the SEC registering the resale of the shares of common stock. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these shares of common stock, nor shall there be any sale of these shares in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.