Orange 21 Inc.'s net sales for the third quarter of 2005 increased 8.4% to $10.8 million compared to $10.0 million in the third quarter of 2004, meeting the high end of the Company's previously announced estimate. The Company reported net income for the third quarter of 2005 of approximately $192,000, compared to net income of approximately $517,000 in the third quarter of 2004. Earnings per diluted share for the third quarter were $0.02 on approximately 8.3 million weighted average shares outstanding compared to $0.10 per share on approximately 5.1 million weighted average shares outstanding in the same period a year ago.

Cash, cash equivalents, and short term investments at September 30, 2005, totaled approximately $10.8 million.

“Although our earnings for the third quarter were less than expected we are pleased with our year to date increase in revenue of approximately 24%. While our third quarter results were adversely impacted by delays in manufacturing, lower than expected sales in our E Eyewear product line, changes to several international distributors, and continued weakness in the U.S. dollar relative to the Euro, we are excited about the continuing global sales growth in the brand,” said Barry Buchholtz, Chief Executive Officer. “We have experienced growing pains during our first year as a public company, but despite these near-term challenges, we remain optimistic about 2006 and beyond, as we believe we are taking the right strategic initiatives to achieve our sales growth and margin improvement goals. Our core brand is well positioned, and we believe our popular existing styles combined with the many new products we've announced will drive sales momentum.”

2005 Outlook

The Company previously announced 2005 annual revenue guidance in the range of $41.5 – $42.5 million and fully diluted earnings per share in the range of $0.05 – $0.09. The guidance includes an estimated $0.02 of dilution from the previously announced acquisition of Orange 21's eyewear manufacturer LEM, and an estimated $0.01 to $0.02 reduction attributable to the costs of the Oakley and Class Action law suits.

                   Orange 21 Inc. and Subsidiaries
                Consolidated Statements of Operations
                             (unaudited)

                      Three months ended        Nine months ended
                          September 30,            September 30,
                    ------------------------ -------------------------
                       2004        2005         2004         2005
                    ----------- ------------ ------------ ------------

Net sales           $9,977,364  $10,819,773  $24,028,325  $29,707,956
Cost of sales        4,619,500    5,310,534   10,930,375   14,494,701
                    ----------- ------------ ------------ ------------

Gross Profit         5,357,864    5,509,239   13,097,950   15,213,255
                    ----------- ------------ ------------ ------------

Operating expenses:
  Sales and
   marketing         3,048,848    3,462,546    7,875,932    9,381,103
  General and
   administrative    1,069,485    1,368,080    3,242,121    4,223,149
  Shipping and
   warehousing         315,642      334,917      670,313      924,508
  Research and
   development          96,474      160,562      283,679      475,018
                    ----------- ------------ ------------ ------------

    Total operating
     expenses        4,530,449    5,326,105   12,072,045   15,003,778
                    ----------- ------------ ------------ ------------

  Income from
   operations          827,415      183,134    1,025,905      209,477

Other income
 (expense)
  Interest (expense)
   income - net        (90,680)      85,632     (324,930)     236,045
  Foreign currency
   transaction gain    242,884      165,933       97,170       66,345
  Other income
   (expense) - net      48,747        4,704       48,572       (7,917)
                    ----------- ------------ ------------ ------------
    Total other
     income
     (expense)         200,951      256,269     (179,188)     294,473
                    ----------- ------------ ------------ ------------
    Income before
     income taxes    1,028,366      439,403      846,717      503,950
Income tax provision   511,442      247,293      761,401      444,451
                    ----------- ------------ ------------ ------------
  Net income          $516,924     $192,110      $85,316      $59,499
                    =========== ============ ============ ============
Net earnings per
 common share
  Basic                  $0.11        $0.02        $0.02        $0.01
                    =========== ============ ============ ============
  Diluted                $0.10        $0.02        $0.02        $0.01
                    =========== ============ ============ ============
Weighted average
 common shares
 outstanding
  Basic              4,898,246    8,026,502    4,570,556    8,014,352
                    =========== ============ ============ ============
  Diluted            5,073,466    8,339,792    4,745,788    8,407,376
                    =========== ============ ============ ============