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.