CARLSBAD, Calif.--(BUSINESS WIRE)--March 30, 2005--Orange 21 Inc. (NASDAQ:ORNG):

    --  2004 Revenues of $33.56 million, a 22.5% increase over 2003

    --  2004 Net Income of $807,304, a 61% increase over 2003

    --  2004 Fully diluted EPS of $0.16 for 2004 versus $0.11 in 2003

Orange 21 Inc., a leading developer of brands that produce premium optical products, today announced financial results for the fourth quarter and fiscal year ended December 31, 2004.

Fiscal year 2004 net sales increased 22.5% to $33.56 million from $27.4 million for fiscal year 2003. 2004 net income was $807,304, compared to $500,097 in 2003, representing a 61% increase. For fiscal year 2004, earnings per diluted share were $0.16 on 5.0 million average shares outstanding versus $0.11 on 4.6 million average shares outstanding in 2003.

The Company's net sales for the fourth quarter of 2004 were $9.5 million compared to $7.7 million in the fourth quarter of 2003, an increase of 24.6%. Net income for the fourth quarter of 2004 was approximately $722,000 versus a net loss of approximately $110,000 in the fourth quarter of 2003. Earnings per diluted share for the fourth quarter of 2004 were $0.13 on 5.8 million average shares outstanding compared to a loss per share of $0.02 on 4.4 million average shares outstanding in the same period a year ago.

Cash and cash equivalents at December 31, 2004, totaled $11.5 million.

"We are very pleased with our results for the fourth quarter and 2004," said Barry Buchholtz, Chief Executive Officer. "Our success is attributable to the continued execution of our focused strategy to leverage our brand recognition within our target market and increase market share in the premium eyewear category."

Mr. Buchholtz continued, "We are excited about the growth opportunities for 2005 and beyond. We have already launched the Dale Earnhardt, Jr. signature sunglass series, which is being marketed under the E Eyewear brand, and we have embarked on an accelerated expansion plan in the U.S., as well as Europe."

Investor Conference Call

Orange 21's quarterly earnings conference call is scheduled to begin today at 1:45 p.m., Pacific Standard Time. The conference call will be broadcast live over the Internet. Investors may listen to the live webcast at www.orangetwentyone.com. For those who are not available for the live broadcast, the call will be archived on Orange 21's investor website.

About Orange 21 Inc.

Orange 21 develops brands that produce premium optical products. Orange 21's brands include Spy Optic, which manufactures sunglasses and goggles targeted towards the action sports and youth lifestyle market, and E Eyewear, which manufactures the signature Dale Earnhardt, Jr. sunglass line.

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements and forecasts about Orange 21 and its business, such as management's net sales and earnings estimates for 2005. Because forecasts are inherently estimates that cannot be made with precision, the company's performance may at times differ from its estimates and targets.

Statements in this press release regarding financial guidance, Mr.Buchholtz's statements and any other statements in this press release that refer to Orange 21's estimated and anticipated future results, are forward-looking statements. All forward-looking statements in this press release reflect Orange 21's current analysis of existing trends and information and represent Orange 21's judgment only as of the date of this press release. Actual results may differ from current expectations based on a number of factors affecting Orange 21's businesses including but not limited to adjustments made pursuant to the final audit by our outside auditors; uncertainties associated with Orange 21's ability to maintain a sufficient supply of products and to successfully manufacture its products; the performance of new products and continued acceptance of current products; the execution of strategic initiatives and alliances; Orange 21's product liability claims or quality issues; litigation; and the uncertainties associated with intellectual property protection for the company's products. In addition, matters generally affecting the domestic and global economy, such as changes in interest and currency exchange rates, can affect Orange 21's results. Therefore, the reader is cautioned not to rely on these forward-looking statements. Orange 21 disclaims any intent or obligation to update these forward-looking statements.

Further information on potential risk factors that could affect Orange 21's business and its financial results are detailed in its filings with the Securities and Exchange Commission, including its Registration Statement on Form S-1 declared effective on December 13, 2004. Undue reliance should not be placed on forward-looking statements.

                   ORANGE 21 INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS

In $000s                        Quarter ended          Year ended
                                 December 31,          December 31,
                             -------------------- --------------------

                                  2003      2004       2003      2004
                             -------------------- --------------------

Net sales                       $7,652    $9,535    $27,404   $33,563
Cost of sales                    4,048     4,600     13,186    15,530
                             -------------------- --------------------

Gross Profit                     3,604     4,935     14,218    18,033

Operating expenses:
Sales and marketing              1,731     2,516      8,075    10,392
General and administrative       1,235     1,322      3,775     4,563
Shipping and warehousing           152       320        771       990
Research and development            11       228        264       512
                             -------------------- --------------------

Total operating expenses         3,129     4,386     12,885    16,457

Income from operations             475       549      1,333     1,576

Other income (expense)            (127)      345       (144)      165

                             -------------------- --------------------
 Income before income taxes        348       894      1,189     1,741
 Income tax provision
  (benefit)                        458       172        689       934
                             -------------------- --------------------
Net income                       $(110)     $722       $500      $807
                             ==================== ====================
Net income per share
Basic                           $(0.02)    $0.13      $0.11     $0.17
                             ==================== ====================
Diluted                         $(0.02)    $0.13      $0.11     $0.16
                             ==================== ====================
Shares used in computing net
 income per share
Basic                        4,434,067 5,424,587  4,426,056 4,643,320
                             ==================== ====================
Diluted                      4,434,067 5,754,519  4,617,609 4,973,252
                             ==================== ====================


                   ORANGE 21 INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS

                                                     December 31,
                                             -------------------------
Assets                                            2003         2004
                                             ------------ ------------
Current assets
Cash and cash equivalents                       $581,207  $11,476,828
Accounts receivable--net                       6,635,277    8,244,910
Inventories                                    6,669,307   11,814,846
Prepaid expenses and other current assets      1,199,500    1,073,181
Income taxes receivable                           65,025            -
Deferred income taxes                            985,000    1,074,000
                                             ------------ ------------

    Total current assets                      16,135,316   33,683,765
Property and equipment - net                   3,893,438    3,687,907
Due from related party                           845,057            -

Intangible assets, net of accumulated
 amortization of $264,633 and $318,332  at
 December 31, 2003 and 2004, respectively        167,214      152,543
                                             -------------------------

        Total assets                         $21,041,025  $37,524,215
                                             ============ ============

Liabilities and Stockholders' Equity
Current liabilities
Line of credit                                $7,075,000           $-
Current portion of notes payable                 190,000      125,000
Notes payable to stockholders                    380,000            -
Current portion of capitalized leases             39,505       37,370
Accounts payable                               2,031,958    2,243,955
Accrued expenses and other liabilities         1,369,820    2,433,371
Income taxes payable                                   -      443,619
                                             ------------ ------------

    Total current liabilities                 11,086,283    5,283,315
Notes payable, less current portion              281,250      166,667
Capitalized leases, less current portion          59,527       31,369
Deferred income taxes                            107,000      143,000

    Total liabilities                         11,534,060    5,624,351
Commitments and contingencies
Stockholders' equity
Preferred stock; par value $0.0001;
 5,000,000 authorized                                  -            -
Common stock; par value $0.0001; 100,000,000
 shares authorized; 4,434,067 and 7,491,218
 shares issued and outstanding at December
 31, 2003 and 2004, respectively              10,117,798          747

Additional paid-in capital                        92,353   31,655,426
Accumulated other comprehensive income           298,100      437,673
Accumulated deficit                           (1,001,286)    (193,982)
                                             ------------ ------------

    Total stockholders' equity                 9,506,965   31,899,864
                                             ------------ ------------

                                             $21,041,025  $37,524,215
                                             ============ ============

CONTACT: Orange 21 Inc.
Michael Brower, 760-804-8420
or
Integrated Corporate Relations
310-395-2215
Andrew Greenebaum, agreenebaum@icrinc.com
Allyson Pooley, apooley@icrinc.com

SOURCE: Orange 21 Inc.