ADDING and REPLACING Spy Optic, Inc. Signs Two Australian Distribution Agreements.

CARLSBAD, Calif. -- Add Safe Harbor Statement after last graph of release.

The corrected release reads:

SPY OPTIC, INC. SIGNS TWO AUSTRALIAN DISTRIBUTION AGREEMENTS

Spy Optic, Inc., a wholly owned subsidiary of Orange 21 Inc. (NASDAQ:ORNG), a leading developer of brands that produce premium products for the action sport and youth lifestyle markets, announced today that it has signed two separate distributions agreements in Australia with Quattro Sports, a leading distributor of U.S. youth and board sports brands, and GAS Imports Australia Pty Ltd, a leading distributor for the motocross and motorcycle markets, to specifically target the Action Sports and Motorsports distribution channels. The new distributors will replace Marmalade, Spy's previous distributor. Spy and Marmalade have worked together over the past few months to find the best solution for Spy products in Australia, and both parties have agreed that it would be best to split the distribution into specialist segments.

"We are very excited about our recent distribution agreements as both play a significant role in broadening the awareness of the Spy Optic brand in this important market," said Barry Buchholtz, Chief Executive Officer of Orange 21. "Quattro Sports and GAS Imports both have long and successful track records in their respective specialties, and we welcome them to the Spy Optic distribution family."

Quattro Sports will distribute Orange 21's Spy Optic products to Australia's action sports market. Quattro Sports is entrenched in the youth and board sports culture, and has successfully serviced the Australian surf, skate, BMX, and snow market for the past 12 years. Spy will be added to Quattro's current portfolio of four leading U.S. footwear brands: Etnies, eS, Emerica and Thirty Two.

"We feel Spy has just scratched the surface of the Aussie market," said Kevin Wadham, Quattro Sports Managing Director. "Spy Optic is a high quality product, yet remains true to its roots in the action sports industry. Spy is a remarkable addition to our existing portfolio of strong U.S. brands, and we are confident that this will be a very successful collaboration." Mr. Wadham has over 25 years experience importing and distributing board sports products.

GAS Imports Australia will focus on distribution of the Spy products to the motorsports market in Australia. GAS has been serving the motocross and motorcycle markets for 15 years, serving as the exclusive Australian Distributor for Thor MX motocross products and Michelin motorcycle tires. Owners Sean Gallagher and Doug Sharp have both been involved in the motorcycle industry on the racing and business sides for the last 30 years.

"We believe that this distribution agreement is an important step in achieving future success within the motor sports industry for the Spy Optic brand," said Doug Sharp, owner of GAS Imports Australia. "We look forward to building on Spy Optics' current success as we help to further grow the brand within the Australian marketplace."

About Orange 21 Inc.

Orange 21 develops brands that produce premium products for the action sport and youth lifestyle markets. Orange 21's primary brand, Spy Optic(TM), manufactures sunglasses and goggles targeted towards the action sports and youth lifestyle markets.

Safe Harbor Statement

This press release contains forward-looking statements. These statements relate to future events or future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," or "continue," the negative of such terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. Factors that could cause actual results to differ materially from those contained in the forward-looking statements include, but are not limited to: risks related to the Company's ability to manage growth; risks related to the limited visibility of future orders; the ability to identify and work with qualified manufacturing partners and consultants; the ability to expand distribution channels and retail operations in a timely manner; unanticipated changes in general market conditions or other factors, which may result in cancellation of advance orders or a reduction in the rate of reorders placed by retailers; the ability to continue to develop, product and introduce innovative new products in timely manner; the ability to source raw materials and finished products at favorable prices; the ability to identify and execute successfully cost control initiatives; uncertainties associated with the Company's ability to maintain a sufficient supply of products and to manufacture successfully products; the integration of the LEM acquisition the performance of new products and continued acceptance of current products; the execution of strategic initiatives and alliances; the impact of ongoing litigation; uncertainties associated with intellectual property protection for the Company's products; matters generally affected the domestic and global economy, such as changes in interest and currency rates; and other factors described under the caption "Risk Factors" in the Company's Form 10-Q for the quarter ended March 31, 2006 and other filings made with the U.S. Securities and Exchange Commission.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance or achievements. Moreover, neither the Company, nor any other person, assumes responsibility for the accuracy or completeness of such forward-looking statements. The Company undertakes no obligation to update any of the forward looking statements.