Orange 21 Inc. Reports Financial Results for the Year Ended December 31, 2010 and Announces Investor Conference Call

CARLSBAD, CA – March 25, 2011 – (Motor Sports Newswire) – Orange 21 Inc. (OTCBB: ORNG) announced today it released financial results for the year ended December 31, 2010.

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. Our 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.”

Investor Conference Call

We invite you to join us for an investor conference call on Wednesday, March 30, 2011 at 1:30, p.m. Pacific Time. The dial-in number for the call in North America is 1-866-711-8198 and 1-617-597-5327 for international callers. The participant pass code is 34128218. The call will also be webcast live on the internet and can be accessed by logging onto www.orangetwentyone.com.

The webcast will be archived on the Company’s website for at least 60 days following the call. An audio replay of the conference call will be available for seven days beginning approximately two hours after the completion of the call on March 30, 2011. The audio replay dial-in number for North America is 1-888-286-8010 and 1-617-801-6888 for international callers. The replay pass code is 34116019.

About Orange 21 Inc.

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™.

Safe Harbor Statement

This press release may contain forward-looking statements. Actual events or results may differ materially. Although, we believe that the expectations reflected in any forward-looking statement is reasonable, we cannot guarantee future results. Moreover, we assume no responsibility for the accuracy or completeness of such forward-looking statements and undertake no obligation to update any of these forward-looking statements.

                      ORANGE 21 INC. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS
        (Thousands, except number of shares and per share amounts)

                                                          December 31,
                                                     ---------- ----------
                                                        2010       2009
                                                     ---------- ----------

                       Assets

Current assets
  Cash                                               $      263 $      654
  Accounts receivable, net                                4,173      5,886
  Inventories, net                                        8,902      7,759
  Prepaid expenses and other current assets                 618      1,036
  Income taxes receivable                                    14         56
                                                     ---------- ----------
    Total current assets                                 13,970     15,391
Property and equipment, net                                 957      4,892
Intangible assets, net of accumulated amortization
 of $631 and $714 at December 31, 2010 and 2009,
 respectively                                               122        296
Other long-term assets                                       50         92
                                                     ---------- ----------
    Total assets                                     $   15,099 $   20,671
                                                     ========== ==========
          Liabilities and Stockholders' Equity

Current liabilities
  Lines of credit                                    $    2,235 $    3,750
  Current portion of capital leases                          27        395
  Current portion of notes payable                           13        723
  Accounts payable                                        1,693      5,431
  Accrued expenses and other liabilities                  3,007      3,350
                                                     ---------- ----------
    Total current liabilities                             6,975     13,649
Capitalized leases, less current portion                     38        812
Notes payable, less current portion                          61        308
Note payable to stockholder                               7,000          -
Deferred income taxes                                         -        404
                                                     ---------- ----------
  Total liabilities                                      14,074     15,173
Stockholders' equity
  Preferred stock: par value $0.0001; 5,000,000
   authorized; none issued                                    -          -
  Common stock: par value $0.0001; 100,000,000
   shares authorized; 11,980,934 and 11,903,943
   shares issued and outstanding at December 31,
   2010 and 2009, respectively                                1          1
  Additional paid-in capital                             40,972     40,515
  Accumulated other comprehensive income                    551        874
  Accumulated deficit                                   (40,499)   (35,892)
                                                     ---------- ----------
    Total stockholders' equity                            1,025      5,498
                                                     ---------- ----------
    Total liabilities and stockholders' equity       $   15,099 $   20,671
                                                     ========== ==========

                      ORANGE 21 INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                   (Thousands, except per share amounts)

                                                          Year Ended
                                                          December 31,
                                                     ---------------------
                                                        2010       2009
                                                     ---------- ----------

Net sales                                            $   34,987 $   34,238
Cost of sales                                            18,235     20,399
                                                     ---------- ----------
  Gross profit                                           16,752     13,839
Operating expenses:
  Sales and marketing                                     9,272      7,330
  General and administrative                              7,471      7,614
  Shipping and warehousing                                1,103      1,040
  Research and development                                1,539      1,145
                                                     ---------- ----------
    Total operating expenses                             19,385     17,129
                                                     ---------- ----------
  Loss from operations                                   (2,633)    (3,290)
Other income (expense):
  Interest expense                                         (606)      (310)
  Foreign currency transaction gain                         141        330
  Other income (expense)                                     84        (36)
  Loss on deconsolidation of LEM                         (1,441)         -
                                                     ---------- ----------
    Total other expense                                  (1,822)       (16)
                                                     ---------- ----------
  Loss before provision for income taxes                 (4,455)    (3,306)
Income tax provision                                        152        101
                                                     ---------- ----------
Net loss                                             $   (4,607)$   (3,407)
                                                     ========== ==========

Net loss per share of Common Stock
    Basic                                            $    (0.39)$    (0.30)
                                                     ========== ==========
    Diluted                                          $    (0.39)$    (0.30)
                                                     ========== ==========
Shares used in computing net loss per share of
 Common Stock
    Basic                                                11,956     11,444
                                                     ========== ==========
    Diluted                                              11,956     11,444
                                                     ========== ==========

Contact:
Orange 21 Inc.
A. Stone Douglass
Chief Executive Officer
760-804-8420
Fax: 760-804-8442
www.orangetwentyone.com

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