Ironclad Performance Wear Corporation, the maker of high-performance gloves and apparel, said sales decreased 11.6% for the third quarter of 2009 to $3.60
million, compared to net sales of $4.07 million in the prior year
period.

This decrease is the result of special promotions in the prior
year that were not available in the current period or whose timing
shifted to the fourth quarter in 2009. However, for the nine months
ended September 30, 2009, net sales increased 16.5% to $9.20 million,
compared to net sales of $7.89 million in the prior year period. This
increase is due to continued strength in Ironclad's industrial/safety
sales channel, as well as increased international sales.

Ironclad's third quarter 2009 gross margin increased slightly to 38.7% versus 38.4% in the prior year period. Gross margin for the nine months ended September 30, 2009 decreased to 37.9% from 39.6% in the prior year period. This decrease in year-to-date gross margin is the result of prior year extraordinary adjustments incurred in the first quarter of 2009.

Operating expenses decreased by $130,000 during the third quarter of 2009 to $1.36 million, compared to $1.49 million in the prior year period. For the nine months ended September 30, 2009, operating expenses decreased by $980,000 to $4.18 million from $5.16 million in the prior year period. These savings are a direct result of a continuing focus throughout the company on cost containment and control, as well as a rationalization of general operating expenses to match sales.

Third quarter net income increased to $9,434 compared to a net loss of $40,923 in the prior year period. For the nine months ended September 30, 2009, net loss decreased $1.44 million to $770,000 from $2.21 million in the prior year period. This significant reduction in net loss in the third quarter of 2009 is a reflection of Ironclad's on-going efforts toward achieving operating income break-even in 2009 and building a sustainably profitable business in 2010 and beyond.

Basic and diluted net profit per share for the third quarter of 2009 were $0.00 on a weighted average common shares outstanding of 72.95 million, compared to a net loss of $(0.00) on a weighted average common shares outstanding of 42.46 million in the prior year period. For the nine months ended September 30, 2009 basic and diluted net loss per share were $(0.01) on a weighted average common shares outstanding of 68.98 million, compared to $(0.06) on a weighted average common shares outstanding of 39.55 million in the prior year.

“Ironclad continues to see growth through its industrial/safety channels, and particularly within the energy sector through the Company's KONG(TM) line of safety gloves,” said Scott Jarus, Chairman and CEO of Ironclad Performance Wear. “Ironclad is helping re-define what hand protection can and should be for industrial users, first-responders and do-it-yourself consumers.”

Balance Sheet Highlights

Cash at September 30, 2009, was $212,240 compared to $215,203 at December 31, 2008. Inventory and deposits on inventory were $5.17 million at September 30, 2009, compared to $3.40 million at the prior year end, primarily reflecting a planned increase in inventory on-hand and in-transit to support our busiest build & ship season. Net working capital at September 30, 2009, was $3.20 million compared to $2.04 million at December 31, 2008. Ironclad had $1.43 million outstanding on its line of credit as of September 30, 2009, compared to $1.60 million at December 31, 2008. Warrant liability as of September 30, 2009 was $5,180 compared to $2,097 on December 31, 2008.

Outlook for Full-Year 2009

Ironclad has not previously provided financial guidance for 2009, except to say that the Company has set a goal to achieve break-even (operating net income less all non-cash expenses) for the year. Based upon the results to-date, combined with the Company's fourth quarter projections, it is the Company's expectation that it will achieve or come very close to achieving this financial goal for 2009.

Jarus added, “Despite harrowing financial conditions around the world, Ironclad continues to experience increasing interest and sales of its high-quality task-specific glove products. These include significant new customers and co-branded licensing opportunities, such as the 5.11 Tactical relationship recently announced. As a result, we believe that the Company has reached an inflection point which sets the stage for a profitable year in 2010.”

                           Ironclad Performance Wear Corp.
CONSOLIDATED STATEMENTS OF OPERATIONS

Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
September September September September
30, 30, 30, 30,
2009 2008 2009 2008
---------- ---------- ---------- ----------
REVENUES
Net sales $3,598,337 $4,072,693 $9,198,240 $7,893,012

COST OF SALES
Cost of sales 2,207,114 2,507,250 5,712,301 4,769,139
--------- --------- --------- ---------

GROSS PROFIT 1,391,223 1,565,443 3,485,939 3,123,873

OPERATING EXPENSES
General and
administrative 558,622 602,103 1,642,542 1,902,620
Sales and marketing 587,275 619,693 1,830,368 2,325,230
Research and
development 54,866 88,613 198,558 297,479
Purchasing,
warehousing
and distribution 139,607 156,899 440,668 561,674
Depreciation and
amortization 22,130 24,895 67,810 73,713
------ ------ ------ ------
Total Operating
Expenses 1,362,500 1,492,203 4,179,946 5,160,716

INCOME (LOSS) FROM
OPERATIONS 28,723 73,240 (694,007) (2,036,843)

OTHER INCOME (EXPENSE)
Interest expense (18,315) (72,674) (61,375) (132,402)
Interest income 6 49 473 4,590
Change in fair value of
warrant liability 520 - (3,083) -
Other income
(expense), net (1,500) (43,814) 6,477 (46,520)
Unrealized gain (loss) on
financings activities - - - (1,515)
Litigation settlement - - (17,183) -
Loss on disposition of
equipment - - (480) -
--- --- --- ---

Total Other Income
(Expense), Net (19,289) (116,439) (75,171) (175,847)
------ ------- ------ -------

NET INCOME (LOSS)
BEFORE INCOME TAXES 9,434 (43,199) (769,178) (2,212,690)

PROVISION FOR
(BENEFIT FROM)
INCOME TAXES - (2,276) 1,466 (1,466)
--- --- ----- ------

NET INCOME (LOSS) $9,434 $(40,923) $(770,644) $(2,211,224)
====== ========= ========== ============

BASIC AND DILUTED NET
LOSS PER COMMON SHARE $0.00 $(0.00) $(0.01) $(0.06)
===== ====== ====== =======

WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 72,951,183 42,464,504 68,975,664 39,546,712