798081--4/12/2007--LAKELAND_INDUSTRIES

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{stock, price, operating}

{operation, international, foreign}

{acquisition, growth, future}

{cost, regulation, environmental}

{loss, insurance, financial}

{personnel, key, retain}

{product, market, service}

{customer, product, revenue}

{debt, indebtedness, cash}

{regulation, change, law}

{provision, law, control}

{competitive, industry, competition}

{product, liability, claim}

Risk Related to Our Business We rely on a limited number of suppliers and manufacturers for specific fabrics, including Tyvek and Tychem , and we may not be able to obtain substitute suppliers and manufacturers on terms that are as favorable, or at all, if our supplies are interrupted. We are subject to risk as a result of our international manufacturing operations. Our results of operations could be negatively affected by potential fluctuations in foreign currency exchange rates. Rapid technological change could negatively affect sales of our products and our performance. Acquisitions or future expansion could be unsuccessful. If we are unable to manage our growth, our business could be adversely affected. We must recruit and retain skilled employees, including our senior management, to succeed in our business. Because we do not have long-term commitments from many of our customers, we must estimate customer demand and errors in our estimates could negatively impact our inventory levels and net sales. We face competition from other companies, two of which have substantially greater resources than we do. Some of our sales are to foreign buyers, which exposes us to additional risks. Covenants in our credit facilities may restrict our financial and operating flexibility. We may need additional funds, and if we are unable to obtain these funds, we may not be able to expand or operate our business as planned. A reduction in government funding for preparations for terrorist incidents that could adversely affect our net sales. We may be subject to product liability claims, and insurance coverage could be inadequate or unavailable to cover these claims. Environmental laws and regulations may subject us to significant liabilities. The market price of our common stock may fluctuate widely. Our results of operations may vary widely from quarter to quarter. Compliance with the Sarbanes-Oxley Act of 2002 and rules and regulations relating to corporate governance and public disclosure may result in additional expenses and negatively impact our results of operations. Our directors and executive officers have the ability to exert significant influence on our company and on matters subject to a vote of our stockholders. Provisions in our restated certificate of incorporation and by-laws and Delaware law could make a merger, tender offer or proxy contest difficult.

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798081--4/12/2007--LAKELAND_INDUSTRIES_INC