CARLSBAD, Calif.—Orange 21 Inc. (OTC:ORNG.PK) reported consolidated net sales for the three months ended March 31, 2010 increased to $8.3 million from $7.4 million for the comparable three months in 2009. Domestic net sales, including net sales for the U.S. and Canada, represented 79 percent of total net sales for the first quarter while foreign net sales represented 21 percent of total net sales for the period. The company’s statement said sales were up for all customer classes, especially for key accounts and closeout retailers.

Orange 21 incurred a net loss of $0.9 million for the three months ended March 31, compared to a net loss of $0.8 million for the prior year’s period. The net losses for the first quarter included $134,000 in non-cash share-based compensation costs calculated in accordance with FASB authoritative guidance.

“We believe that our cost cutting initiatives taken during late 2008 and throughout 2009 as a result of the economic downturn as well as our refocused sales and marketing and development initiatives are beginning to show some positive results,” commented Stone Douglass, Orange 21’s CEO. He added, “We believe our Spy brand remains strong and we are very excited about the release of our new O’Neill and Margaritaville brands, as well as other potential opportunities the company is currently working on.”

Orange 21 will hold an investor conference call on Monday, May 17, 2010 at 1:30, p.m. PT. The dial-in number for the call in North America is 1-888-396-2356 and 1-617-847-8709 for international callers. The participant pass code is 87260429. The call will also be webcast live on the Internet and can be accessed by logging onto www.orangetwentyone.com.