Settlement Fully Terminates the Lease and Concludes Related Litigation

Resolution Removes Legacy Overhang and Further Simplifies the Business as the Company Remains Focused on its Core Fire Services and Industrial Operations

HUNTSVILLE, Ala., July 07, 2026 (GLOBE NEWSWIRE) -- Lakeland Industries, Inc. ("Lakeland Fire + Safety" or "Lakeland") (NASDAQ:LAKE), a leading global manufacturer of protective clothing and apparel for industry, healthcare and first responders, today announced that it has reached a settlement resolving the previously disclosed matter relating to its leased manufacturing facility within the Monterrey, Mexico metropolitan area. The lease has been terminated in its entirety, and the parties have agreed to conclude the related litigation. Financial terms of the settlement were not disclosed.

The facility was originally established to expand the Company’s regional manufacturing capacity and to shorten delivery times to customers across Latin America and North America. As previously disclosed, structural defects at the newly constructed facility prevented the Company from utilizing the property for its intended purpose. In June 2025, the Company commenced legal proceedings against the lessor seeking rescission of the lease and the return of amounts paid under it. In connection with this matter, the Company recorded a non-cash lease impairment charge of approximately $3.6 million during the fiscal year ended January 31, 2026, related to the right-of-use asset associated with the facility.

The settlement brings the matter to a close. The resolution eliminates the Company’s remaining obligations under the lease, as well as the ongoing legal and administrative costs associated with the dispute.

"Resolving the Monterrey matter removes a legacy overhang and marks another step in our ongoing effort to simplify the business and strengthen our financial foundation," said Jim Jenkins, President and Chief Executive Officer of Lakeland Fire + Safety. "This facility was never able to serve its intended purpose, and reaching a resolution on terms that carry no penalty to the Company allows us to put the matter behind us and concentrate our resources on our core Fire product and services and Industrial protective products businesses. Together with the divestiture of our HPFR and HiViz product lines and the sale-leaseback of our Decatur, Alabama facility, this settlement reflects our continued focus on a simpler, more disciplined operating model."

"With the right-of-use asset associated with this facility already impaired, this settlement removes the remaining lease obligations and the carrying and legal costs tied to the dispute," said J. Calven Swinea, Chief Financial Officer of Lakeland Fire + Safety. "Any remaining financial effects of the settlement will be reflected in our results for the period in which the matter is finalized. Eliminating this liability is consistent with the steps we are taking to improve utilization, reduce complexity, and strengthen our balance sheet."

About Lakeland Fire + Safety

Lakeland Fire + Safety manufactures and sells a comprehensive line of fire services and industrial protective clothing and accessories for the industrial and first responder markets. In addition, we provide decontamination, repair and rental services that complement our fire services portfolio. Our products are sold globally by our in-house sales teams, our customer service group, and authorized independent sales representatives to a strategic global network of selective fire and industrial distributors and wholesale partners. Our authorized distributors supply end users across various industries, including integrated oil, chemical/petrochemical, automobile, transportation, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high-tech electronics manufacturers, as well as scientific, medical laboratories, and the utilities industry. In addition, we supply federal, state and local governmental agencies and departments, including fire and law enforcement, airport crash rescue units, the Department of Defense, the Department of Homeland Security and the Centers for Disease Control. Internationally, we sell to a mix of end-users directly and to industrial distributors, depending on the particular country and market. In addition to the United States, sales are made into more than 50 foreign countries, the majority of which were into China, the European Economic Community ("EEC"), Canada, Chile, Argentina, Commonwealth of Independent States ("CIS") Region, Colombia, Mexico, Ecuador, India, Uruguay, Middle East, Southeast Asia, Australia, Hong Kong and New Zealand.

For more information about Lakeland, please visit the Company's website at www.lakeland.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

This press release contains estimates, predictions, opinions, goals and other "forward-looking statements" as that phrase is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, without limitation, references to the Company's predictions or expectations of future business or financial performance as well as its goals and objectives for future operations, financial and business trends, business prospects, and management's expectations for earnings, revenues, expenses, inventory levels, capital levels, liquidity levels, or other future financial or business performance, strategies or expectations, including without limitation our M&A strategy and tariff mitigation plans. All statements, other than statements of historical facts, which address Lakeland's expectations of sources or uses for capital, or which express the Company's expectation for the future with respect to financial performance or operating strategies, can be identified as forward-looking statements. Forward-looking statements involve risks, uncertainties and assumptions as described from time to time in press releases and Forms 8-K, registration statements, quarterly and annual reports and other reports and filings filed with the Securities and Exchange Commission or made by management. As a result, there can be no assurance that Lakeland's future results will not be materially different from those described herein as "believed," "projected," "planned," "intended," "anticipated," "can," "estimated" or "expected," or other words which reflect the current view of the Company with respect to future events. We caution readers that these forward-looking statements speak only as of the date hereof. The Company hereby expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which such statement is based, except as may be required by law.

Investor Relations

Chris Tyson

Executive Vice President

MZ Group - MZ North America

949-491-8235

LAKE@mzgroup.us

www.mzgroup.us