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The Co. reported 2004 net income of $807,000 or $0.16 per diluted share and 4Q04 net income of $722,000 or $0.13 per diluted share. Excluding the potential impact of legal cost, the Co. is comfortable with its previous 2005 guidance of revenue growth of 25-30%, and an income growth of 63-88%. Q&A Focus: Sales reps, brands, and outlook.

2005 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Thomson Financial.

CORPORATE PARTICIPANTS

Barry Buchholtz

Orange21 - CEO

Michael Brower

Orange21 - CFO

Andrew Greenebaum

Orange21 - Investor Relations Officer

CONFERENCE CALL PARTICIPANTS

Rusty Haas

Haas Capital Partners - Analyst

Steve Lemur

Volt Capital - Analyst

Patrick Franky

Eagle Asset Management - Analyst

Chris Simple

Precept Apple Management - Analyst

Brian Kents

Cowhill Partners - Analyst

PRESENTATION

Operator

Thank you for standing by and welcome to the Orange 21 Incorporated fourth quarter and fiscal 2004 year end results conference call.

(OPERATOR INSTRUCTIONS)

And now I would like to turn the conference over to Andrew Greenebaum of ICR. Mr. Greenbaum, please go ahead.

Andrew Greenebaum - Orange21 - Investor Relations Officer

Thank you. Good afternoon ladies and gentlemen. Welcome to Orange 21s conference call to discuss their fourth quarter and 2004 year end results.

On the call from the company are Barry Buchholtz, Chief Executive Officer and Michael Brower, Chief Financial Officer.

By now everyone should have access to the Press Release that went out today at 1.15 p.m. Pacific Time.

If you have not received the release its available on the Investor Relations portion of Orange 21s website, at www.orangetwentyone.com.

Before we begin today, wed like to remind everyone of the Safe Harbor statement under the Private Securities Litigation Reform Act of 1995. The following prepared remarks contain forward-looking statements and management may make additional forward-looking statements in response to your questions. These statements do not guarantee future performance, and therefore undue reliance should not be placed on them. For more detailed discussion of the factors that could cause actual results to

differ materially from those projected in any forward-looking statements, we refer all of you to Orange 21s most recent (inaudible) form (ph) that is filed with the Securities and Exchange Commission in conjunction with their initial public offering.

And with that, Id like to turn the call over to Barry.

Barry Buchholtz - Orange21 - CEO

Thank you, Andrew. And thank you all for joining us today to discuss our fourth quarter earnings press release. Hopefully by now youve had a chance to review our press release that went out at close of market.

First, since we pre-released our 2004 unaudited results, Ill give you a brief overview of 2004 highlights and then update you on our growth strategies and outlook for 2005. Then Ill turn it over to Michael Brower for additional discussion of the 2004 financial results. Well then take your questions.

Overall we are pleased with our success in 2004. Fourth quarter sales were $9.5 million, a 25% increase over the same period last year. For the year, net sales were $33.5 million, a 22 % increase over 2003. Net income was $807,000 2003. These current results reflect the continued execution of our strategy to leverage our brand recognition within our target market and increase market share in the premium eyewear category. Given that this is our first release as a public company, Im going to spend some time discussing our products, market, and growth strategy.

Ill begin with the SpyOptic brand and later discuss our recently launched E Eyewear brand. Today a majority of our products are sold under the SpyOptic brand. Spy has seven product categories, including fashion sunglasses, womens Pacific? (inaudible) sunglasses, performance sports sunglasses, snow goggles, motor-cross goggles, apparel, and accessories. Currently we have 28 styles of premium sunglasses, ranging in price from $70 to $225, including eight sunglass styles launched in December, and our recently released, exclusive handmade collection.

In addition, we have three motor-cross goggle styles ranging in price from $30 to $68, and six snow goggle styles ranging in price from $50 to $150. We are launching an additional three sunglass styles with our summer collection, expected to ship in early Q2; and new snow goggles skews? (inaudible) in Q3.

Included in our spring product launch were four new metal frames. Spy offerings in the metal collection have been somewhat limited, and so our awareness in this category is low. The addition of these styles provides Spy with the ability to grow within the metal category. Price points in the collection range from $125 to $140. As the leader in premium quality eyewear, Spy will continue to design and manufacture some of the worlds finest eyewear products. In order to maintains the highest levels of quality and workmanship, most of the spy products are handcrafted in Italy. We blend a futuristic retro style, a youth-inspired cool factor, unique colorations, metal accents and trims, and premium lens technology.

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