Ironclad Performance Wear reported net sales for the fourth quarter of
2008 of $4.1 million, a decrease of 22.9% percent a year ago. The loss
from operations declined to $170,000 compared to a loss of $444,000
during the same period in 2007.

Gross profit decreased to $1.44 million, or 35.4% of sales, compared to
$1.89 million, or 35.9% of sales in the fourth quarter of 2007.
Operating expenses declined to $1.61 million, or 39.7% of sales,
compared to $2.33 million, or 44.4% of sales during the same period
last year.

In 2008, sales declined 8.5% to $11.9 million from $13.0 million. About
$250,000 of this decline came from product returns originally sold in
2007 to customers that experienced financial trouble. The company was
able to recover the products and restock them in inventory for future
sales.

Gross profit decreased to $4.56 million, or 38.2% of sales, compared to
$5.00 million, or 38.3% of sales for 2007. Operating expenses declined
to $6.77 million, or 56.7% of sales, compared to $8.83 million, or
67.7% of sales during the same period last year.

The loss from operations declined to $2.21 million compared to a loss of $3.83 million for fiscal year 2007.

Net loss for 2008 declined to $2.5 million, representing a 36.1%
improvement when compared to a net loss of $3.9 million in the prior
year. In addition, $2.2 million, or 87%, of the 2008 net loss occurred
in the first half of the year, showing a strong trend in the second
half of the year towards profitability in the near future.

“Ironclad has not been immune to the global economic crisis,
particularly in the construction and DIY markets, as witnessed by the
decline in quarter-over-quarter and year-over-year sales,” said Ed
Jaeger, president and CEO of Ironclad. “However, as a result of our
success in diversifying our sales channels to include a significant
contribution from the industrial market to the tune of approximately
25% of total sales – which is an increase of 45% over 2007 – we were
able to minimize the overall impact of the economic crisis felt by the
company. In addition, we were able to dramatically reduce our operating
costs such that the business can now scale more effectively in reaction
to changing sales levels.”

Jaeger concluded, “As evidenced by the financial improvements
experienced in the third and fourth quarters of 2008, Ironclad has made
significant progress towards profitability despite a material reduction
in sales caused primarily by the current worldwide economic crisis. We
believe that the company is now structured to weather the storm, and to
take advantage of significant opportunities in 2009 and beyond”.