VAT TAX ISSUE IN BRAZIL (Tables)

12 Months Ended

Jan. 31, 2014

A table summarizing all five different VAT claims and their status is listed below:

			Interest &				Approximate
	Principle		Penalty		Total		for Totals		Loss Possibility	Strategy	Collateral
	R$		R$		R$		US $
		305,897		491,272		797,168		362,000	Remote	To wait Judicial Process	New Land
		573,457		1,098,475		1,671,932		760,000	Remote	To wait Judicial Process	Plant
		6,209,836		6,653,586		12,863,422		5,847,000	Probable	To wait Judicial Process and offer Judicial Deposit (approx. 3% net sales)	-
		402,071		770,133		1,172,204		533,000	Remote	To wait Judicial Process	New Land
		285,009		249,140		534,149		243,000	Loss Agreed	*Accept State Amnesty (8 installments, approx. BRL 42K)	-
		7,776,270		9,262,605		17,038,875		7,745,000		*After State Amnesty Accepted
		PRINCIPAL		INTEREST		TOTAL			State Requirements
		285,009		15,626		334,835			8 Installments representing accepted amnesty per above
Total		285,009		15,626		334,835		152,000

The foregoing forms the basis for the US$1.6 million charge to expense recorded by Lakeland in the first quarter of fiscal 2011.

	BRL (millions)						US (millions)
Foreign exchange rate (at the time recorded								1.82		1.82		1.82
	Total Paid						Total Paid Or
	Or To Be						To Be Paid
	Paid Into						Into
	Government						Government
	Under		Total Not				Under		Total Not
	Amnesty		Available		Available		Amnesty		Available		Available For
	Program		For Credit¹		For Credit²		Program		For Credit¹		Credit²
Original claim 2004-2006		3.5		1.4		2.1		1.9		0.8		1.1
Second claim
Preacquisition 2007-April 2008		2.4		1.0		1.4		1.3		0.5		0.8
Postacquisition May 2008 - April 2009		3.3		1.4		1.9		1.8		0.8		1.0
Totals		9.2		3.8		5.4		5.0		2.1		2.9
Escrow released from one seller		1.0		1.0		-		0.5		0.5		-
Charged to expense at April 30, 2010		-		2.8		-		-		1.6		-

² The amount allowed as credit against future payments represents the VAT taxes actually previously paid to the neighboring state.

The Company has reflected the above items on its January 31, 2014, balance sheet as follows:

		R$ millions		US$ millions⁽¹⁾
Noncurrent assets	VAT taxes eligible for future credit		3.4		1.9
Long-term liabilities	Taxes payable		6.2		3.3

⁽¹⁾ At exchange rate prevailing in 2010 when recorded.