UNITED STATES SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q


(Mark one)

|X|   QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

      For the quarterly period ended July 31, 2005
                                     -------------

                                       OR

|_|   TRANSITION REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

      For the transition period from _______________ to_______________

Commission File Number:  0-15535

                            LAKELAND INDUSTRIES, INC.
--------------------------------------------------------------------------------
             (Exact name of Registrant as specified in its charter)

           Delaware                                     13-3115216
------------------------------             -------------------------------------
   (State of incorporation)                 (IRS Employer Identification Number)

             701 Koehler Avenue, Suite 7, Ronkonkoma, New York 11779
--------------------------------------------------------------------------------
                    (Address of principal executive offices)

             711 Koehler Avenue, Suite 2, Ronkonkoma, New York 11779
--------------------------------------------------------------------------------
             (Former name or address, if changed since last report)

                                 (631) 981-9700
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

      Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                                         YES  [X]   NO   [ ]

      Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).

                                          YES  [X]   NO   [ ]

      Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date:

      Common Stock, $.01 par value, outstanding at September 7, 2005 - 5,017,046
shares.


<PAGE>

                                             LAKELAND INDUSTRIES, INC.
                                                AND SUBSIDIARIES

                                                   FORM 10-Q

      The following information of the Registrant and its subsidiaries is
submitted herewith:

PART I - FINANCIAL INFORMATION:

Item 1.    Financial Statements (unaudited):

<TABLE>
<CAPTION>
                                                                                                        Page
                                                                                                        ----
<S>                                                                                                       <C>
           Introduction ...................................................................................1

           Condensed Consolidated Balance Sheets July 31, 2005 and January 31, 2005........................2

           Condensed Consolidated Statements of Income for the
            Three and Six Months Ended July 31, 2005 and 2004..............................................3

           Condensed Consolidated Statement of Stockholders' Equity - Six Months Ended July 31, 2005.......4

           Condensed Consolidated Statements of Cash Flows - Six  Months Ended July 31, 2005
           and 2004........................................................................................5

           Notes to Condensed Consolidated Financial Statements............................................6

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations..........12

Item 3.    Quantitative and Qualitative Disclosures About Market Risk.....................................17

Item 4.    Controls and Procedures .......................................................................17

PART II - OTHER INFORMATION:

Item 6.    Exhibits and Reports on Form 8-K    ...........................................................17

Signature Page............................................................................................19

</TABLE>


<PAGE>

                            LAKELAND INDUSTRIES, INC.
                                AND SUBSIDIARIES

PART I -  FINANCIAL INFORMATION
          ---------------------

Item 1.   Financial Statements:

      Introduction
      ------------

                              CAUTIONARY STATEMENTS

      This report may include "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements are all statements other than
statements of historical fact included in this report, including, without
limitation, the statements under the heading "Management's Discussion and
Analysis of Financial Condition and Results of Operations" regarding the
Company's financial position and liquidity, the Company's strategic
alternatives, future capital needs, development and capital expenditures
(including the amount and nature thereof), future net revenues, business
strategies, and other plans and objectives of management of the Company for
future operations and activities.

      Forward-looking statements are based on certain assumptions and analyses
made by the Company in light of its experience and its perception of historical
trends, current conditions, expected future developments and other factors it
believes are appropriate under the circumstances. These statements are subject
to a number of assumptions, risks and uncertainties, and factors in the
Company's other filings with the Securities and Exchange Commission (the
"Commission"), general economic and business conditions, the business
opportunities that may be presented to and pursued by the Company, changes in
law or regulations and other factors, many of which are beyond the control of
the Company. Readers are cautioned that these statements are not guarantees of
future performance, and the actual results or developments may differ materially
from those projected in any forward-looking statements. All subsequent written
and oral forward-looking statements attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by these
cautionary statements.


                                                                               1
<PAGE>
<TABLE>
<CAPTION>

                         LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
                            CONDENSED CONSOLIDATED BALANCE SHEETS

                          ASSETS                            July 31, 2005   January 31, 2005
                                                             (Unaudited)
<S>                                                               <C>              <C>
Current assets:
Cash and cash equivalents
     (which includes $0 and
     $3,711,320 of marketable securities at July 31,
     2005 and January 31, 2005, respectively)                 $ 7,116,840      $ 9,185,382
Accounts receivable, net of allowance for doubtful
     accounts of $323,000 at July 31, 2005 and January
     31, 2005                                                  13,385,512       13,117,374
Inventories, net of reserves of  $392,000 at July 31,
     2005 and $396,000 at January 31, 2005                     35,982,978       30,906,023
Deferred income taxes                                             960,734          960,734
Other current assets                                              948,811          958,491
                                                              -----------      -----------
     Total current assets                                      58,394,875       55,128,004
Property and equipment, net of accumulated
  depreciation of $5,758,000 at July 31, 2005
  and $5,304,000 January 31, 2005                               7,315,519        5,014,240
Goodwill                                                          889,876               --
Other assets                                                      332,652          171,010
                                                              -----------      -----------
                                                              $66,932,922      $60,313,254
                                                              -----------      -----------

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                                              $ 3,572,406      $ 2,710,251
Payable to seller of Mifflin Valley                             1,746,439               --
Accrued expenses and other current liabilities                  1,297,727        1,441,912
                                                              -----------      -----------
                Total current liabilities                       6,616,572        4,152,163
Other long-term liabilities                                       520,330          495,330
Deferred income taxes                                              86,229           86,229
Minority interest in Variable Interest Entities                        --        1,112,861
Amount outstanding under revolving credit arrangement           1,881,933               --
Commitments and contingencies

Stockholders' equity
Preferred stock, $.01 par; authorized 1,500,000 shares
     (none issued)
Common stock, $.01 par; authorized 10,000,000 shares;
     issued and outstanding 5,017,046 shares at July 31,
     2005 and  4,560,885 shares at January 31, 2005                50,170           45,609
Additional paid-in capital                                     42,431,220       36,273,046
Retained earnings                                              15,346,468 (1)   18,148,016
                                                              -----------      -----------
                Total stockholders' equity                     57,827,858       54,466,671
                                                              -----------      -----------
                                                              $66,932,922      $60,313,254
                                                              -----------      -----------
</TABLE>

(1) A cumulative total of $11,612,824 has been transferred from retained
earnings to additional paid-in-capital and par value of common stock due to
three separate stock dividends paid in 2002, 2003 and 2005. As reflected in the
Condensed Consolidated Statement of Stockholders' Equity, $6,162,735 was
included in the quarter ended April 30, 2005.

   The accompanying notes are an integral part of these financial statements.


                                                                               2
<PAGE>
<TABLE>
<CAPTION>

                                LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
                                CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                                (UNAUDITED)

                                                    THREE MONTHS ENDED                SIX MONTHS ENDED
                                                         July 31,                        July 31,
                                                   2005             2004           2005            2004
                                                   ----             ----           ----            ----
<S>                                            <C>             <C>             <C>             <C>
Net sales                                      $ 25,089,146    $ 22,845,169    $ 50,798,074    $ 49,683,192
Cost of goods sold                               19,293,516      17,983,098      38,835,565      38,841,689
                                               ------------    ------------    ------------    ------------
Gross profit                                      5,795,630       4,862,071      11,962,509      10,841,503
Operating expenses                                3,589,281       2,990,264       7,210,126       6,576,984
                                               ------------    ------------    ------------    ------------
Operating profit                                  2,206,349       1,871,807       4,752,383       4,264,519
Interest and other income, net                       65,562             849          89,024          10,309
Interest expense                                     (3,582)        (69,316)         (4,012)       (206,457)
                                               ------------    ------------    ------------    ------------
Income before minority interest                   2,268,329       1,803,340       4,837,395       4,068,371
Minority interest in net income of
variable interest entities * *                           --         175,710              --         294,406
                                               ------------    ------------    ------------    ------------
Income before income taxes                        2,268,329       1,627,630       4,837,395       3,773,965
Provision for income taxes                          620,119         485,000       1,476,208       1,206,000
                                               ------------    ------------    ------------    ------------
Net income                                     $  1,648,210    $  1,142,630    $  3,361,187    $  2,567,965
                                               ------------    ------------    ------------    ------------
Net income per common share*:
                Basic                          $        .33    $        .27    $        .67    $        .65
                                               ------------    ------------    ------------    ------------

                Diluted                        $        .33    $        .27    $        .67    $        .65
                                               ------------    ------------    ------------    ------------

Weighted average common shares outstanding*:
                Basic                             5,017,046       4,251,486       5,017,046       3,926,402
                Diluted                           5,021,058       4,257,869       5,021,267       3,932,276

</TABLE>

*Adjusted for the 10% stock dividend to shareholders of record on April 30, 2005
and reflects 1,280,750 shares offered to the public in June and July 2004.

* * Properties owned by related parties were purchased by the Company in April
2005, thus the Company deemed the impact of FIN46R to be deminimus for the July
31, 2005 financial statements.


The accompanying notes are an integral part of these financial statements.


                                                                               3
<PAGE>
<TABLE>
<CAPTION>

                                 LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
                          CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                                 (UNAUDITED) Six months ended July 31, 2005


                                                           Additional
                                    Common Stock             Paid-in       Retained
                               Shares         Amount         Capital       Earnings         Total
                               ------         ------         -------       --------         -----

<S>                            <C>         <C>            <C>            <C>             <C>
Balance, January 31, 2005      4,560,885   $     45,609   $ 36,273,046   $ 18,148,016    $ 54,466,671

10% stock dividend               456,161          4,561      6,158,174     (6,162,735)             --

Net Income                            --             --             --      3,361,187       3,361,187
                            ------------   ------------   ------------   ------------    ------------

Balance July 31,2005           5,017,046   $     50,170   $ 42,431,220   $ 15,346,468    $ 57,827,858
                            ------------   ------------   ------------   ------------    ------------
</TABLE>

      (Reflects the three separate 10% stock dividends issued on July 31, 2002,
      2003 and April 30, 2005 which resulted in a cumulative transfer of
      $11,612,824 from retained earnings to additional paid in capital and par
      value of common stock). (See note 1 to Condensed Consolidated Balance
      Sheets).


The accompanying notes are an integral part of these financial statements.


                                                                               4
<PAGE>
<TABLE>
<CAPTION>

                     LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                     (UNAUDITED)

                                                                   SIX MONTHS ENDED
                                                                       July 31,
                                                                 2005             2004
                                                                 ----             ----
<S>                                                          <C>             <C>
Cash Flows from Operating Activities
Net income ...............................................   $  3,361,187    $  2,567,965
Adjustments to reconcile net income to net cash provided
  by (used in) operating activities:
  Reserve for inventory obsolescence .....................         (4,601)             --
  Depreciation and amortization ..........................        467,000         436,664
Decrease in accounts receivable ..........................        109,600         537,672
(Increase) in inventories * ..............................     (4,425,529)     (2,948,409)
(Increase) Decrease in other assets ......................        (87,522)        390,631
Decrease (increase) in accounts payable, accrued
    expenses and other liabilities .......................        450,547         (29,439)
                                                             ------------    ------------
Net cash (used in)provided by operating
     activities ..........................................       (129,318)        955,084

Cash Flows from Investing Activities:
Purchases of property and equipment ......................     (3,821,157)       (454,878)
Purchase of marketable securities ........................             --      (4,477,578)
                                                             ------------    ------------
Net cash used in investing activities ....................     (3,821,157)     (4,932,456)
                                                             ------------    ------------

Cash Flows from Financing Activities:
Proceeds from exercise of stock options ..................             --          54,432
Proceeds from secondary stock offerings ..................             --      24,369,023
(Repayments) borrowing under loan agreements .............      1,881,933     (16,784,781)
                                                             ------------    ------------
Net cash provided by financing activities ................      1,881,933       7,638,674
                                                             ------------    ------------

Net increase (decrease) in cash ..........................     (2,068,542)      3,661,302
Cash and cash equivalents at beginning of period .........      9,185,382       2,445,271
                                                             ------------    ------------
Cash and cash equivalents at end of period ...............   $  7,116,840    $  6,106,573
                                                             ------------    ------------
</TABLE>

* Inventory increased as production increased for the second half demand and
accelerated purchases made on raw materials in anticipation of the July 1, 2005
price increase.

The accompanying notes are an integral part of these financial statements.


                                                                               5
<PAGE>

                   LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

1.    Business

      Lakeland Industries, Inc. and Subsidiaries (the "Company"), a Delaware
corporation, organized in April 1982, manufactures and sells a comprehensive
line of safety garments and accessories for the industrial protective clothing
and homeland security markets. The principal market for our products is the
United States. No customer accounted for more than 10% of net sales during the
six month periods ended July 31, 2005 and 2004, respectively.

2.    Basis of Presentation

      The condensed consolidated financial statements included herein have been
prepared by us, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission and reflect all adjustments which are, in the
opinion of management, necessary to present fairly the consolidated financial
information required therein. Certain information and note disclosures normally
included in financial statements prepared in accordance with accounting
principles generally accepted in the United States of America ("GAAP") have been
condensed or omitted pursuant to such rules and regulations. While we believe
that the disclosures are adequate to make the information presented not
misleading, it is suggested that these condensed consolidated financial
statements be read in conjunction with the consolidated financial statements and
the notes thereto included in our Annual Report on Form 10-K filed with the
Securities and Exchange Commission for the year ended January 31, 2005.

      Certain reclassifications between cost of goods sold and operating
expenses were made to the first quarter of fiscal year 2006,in order to be
consistent with the second quarter and year to date of fiscal 2006
classifications for the Mexico and China subsidiaries.

      The results of operations for the six month periods ended July 31, 2005
and 2004, respectively, are not necessarily indicative of the results to be
expected for the full year.

3.    Principles of Consolidation

      The accompanying condensed consolidated financial statements include the
accounts of the Company and its wholly-owned subsidiaries, Laidlaw Adams & Peck,
Inc., and Subsidiary (MeiYang Protective Products Co., Ltd., a Chinese
Corporation), Lakeland Protective Wear, Inc. (a Canadian corporation), Weifang
Lakeland Safety Products Co. Ltd. (a Chinese corporation), Qing Dao Maytung
Healthcare Co., Ltd. (a Chinese corporation), Lakeland Industries Europe Ltd. (a
British Corporation), Lakeland de Mexico S.A. de C.V (a Mexican corporation) and
Mifflin Valley, Inc. (A Delaware Corporation). All significant inter-company
accounts and transactions have been eliminated.

      In January 2003, the FASB issued Interpretation No. 46, "Consolidation of
Variable Interest Entities". This interpretation provides guidance with respect


                                                                               6
<PAGE>

to the consolidation of certain entities, referred to as variable interest
entities, in which an investor is subject to a majority of the risk of loss from
the variable interest entity's activities, or is entitled to receive a majority
of the variable interest entity's residual returns. This interpretation also
provides guidance with respect to the disclosure of variable interest entities
in which an investor maintains an interest but is not required to consolidate.
The provisions of the interpretation were effective immediately for all variable
interest entities created after January 31, 2003, or in which we obtain an
interest after that date. In December 2003, the FASB issued a revision to this
pronouncement, FIN 46R, which clarified certain provisions and modified the
effective date from October 1, 2003 to March 15, 2004 for variable interest
entities created before February 1, 2003. The two entities which leased property
and buildings to the Company and were owned by related parties, which have been
consolidated in our financial statements for the year ended January 31, 2005 are
River Group Holding Co., L.L.P. and POMS Holding Co. Several of the owners of
these entities were directors and officers of Lakeland. Under FIN 46, it is
likely that leases between an entity and its related parties would be considered
a variable interest, even if there is no residual value guarantee or purchase
option. The FASB staff's view is that these elements are implied in a
related-party lease even though they may not be explicitly stated in the lease
agreement.

      Effective February 1, 2004 we adopted this pronouncement. As a result,
certain entities which leased property to the Company and were owned by related
parties were determined to be Variable Interest Entities and have been
consolidated since the Company's April 30, 2004 quarterly financial statements.
Creditors, or beneficial interest holders, of the consolidated variable interest
entities have no recourse to the general credit of the Company.

      On April 25, 2005, the Company purchased property and buildings from POMS
Holding Co. for a net purchase price of $2,067,584. Reference is made to the
Company's filing on Form 8-K dated April 25, 2005.

      In April 2005, the Company entered into a real estate purchase contract
with River Group Holding Co. to purchase a warehouse and the real property
underlying it for $928,686. It recorded the purchase on the Company's April 30,
2005 financial statements. The purchase of this property was completed on May
25, 2005. Thus, the Company deemed the impact of FIN 46R to be deminimis for the
July 31, 2005 financial statements.

      There are no variable interest entities in which the "Company" is not the
primary beneficiary.

4.    Business Combinations

      On August 1, 2005, the Company closed its contract to acquire the assets
and operations and assume certain liabilities of Mifflin Valley, Inc.,
("Mifflin") of Shillington, PA for an initial purchase price of $1.58 million,
subject to certain adjustments. Mifflin did approximately $2.6 million of sales
in 2004, and $1.5 million for the six months ended June 30, 2005. Mifflin is a
manufacturer of protective clothing specializing in safety and visibility,
largely for the Emergency Services market, but also for the entire public safety
and traffic control market. Mifflin specializes in customized garments to suit
customers' needs, coupled with quality, service, price and delivery. Mifflin's
products include Flame Retardant garments for the Fire Industry, Nomex clothing
for utilities, and High Visibility Reflective Outerwear for Departments of
Transportation. The purchase was effective as of July 1, 2005 and the results of
Mifflin's operations have been included since July 1 in the Company's reported
results, adding approximately $257,000 in revenue for the month and $0.01 to
earnings per share to the actual reported results. Had the transaction taken
place on February 1, 2005, on a proforma basis, there would have been an
increase in the reported amounts as follows:

                   Quarter ended July 31, 2005   Six months ended July 31, 2005
Sales                       $  505,000                     $1,264,000
Net Income                     136,000                        163,000
Earning per share           $     0.01                     $     0.03


                                                                               7
<PAGE>

5.    Inventories:

      Inventories consist of the following:

                                         July 31,     January 31,
                                           2005          2005
                                           ----          ----
                Raw materials ......   $14,681,895   $12,231,264
                Work-in-process ....     3,385,339     2,614,710
                Finished Goods .....    17,915,744    16,060,049
                                       -----------   -----------
                ....................   $35,982,978   $30,906,023
                                       -----------   -----------

      Inventories include freight-in, materials, labor and overhead costs and
are stated at the lower of cost (on a first-in-first-out basis) or market.

6.    Earnings Per Share:

      On June 18, 2004 we concluded a secondary public stock offering issuing an
additional 1,100,000 shares of common stock. On July 1, 2004 the underwriter
exercised its over-allotment option whereby we issued an additional 180,750
shares of common stock.

      Basic earnings per share are based on the weighted average number of
common shares outstanding without consideration of common stock equivalents.
Diluted earnings per share are based on the weighted average number of common
and common stock equivalents. The diluted earnings per share calculation takes
into account the shares that may be issued upon exercise of stock options,
reduced by the shares that may be repurchased with the funds received from the
exercise, based on the average price during the period.

      The following table sets forth the computation of basic and diluted
earnings per share at July 31, 2005 and 2004, adjusted, retroactively, for the
10% Stock dividends to Shareholders on April 30, 2005.

<TABLE>
<CAPTION>
                                                      Three Months Ended         Six Months Ended
                                                           July 31,                  July 31,
                                                       2005         2004         2005         2004
                                                       ----         ----         ----         ----
<S>                                                 <C>          <C>          <C>          <C>
Numerator
         Net income .............................   $1,648,210   $1,142,630   $3,361,187   $2,567,965
                                                    ----------   ----------   ----------   ----------
Denominator
         Denominator for basic earnings per share    5,017,046    4,251,486    5,017,046    3,926,402
               (Weighted-average shares)
                Effect of dilutive securities ...        4,012        6,383        4,221        5,874
                                                    ----------   ----------   ----------   ----------
Denominator for diluted earnings per share ......    5,021,058    4,257,869    5,021,267    3,932,276
                                                    ----------   ----------   ----------   ----------
(adjusted weighted-average shares)
Basic earnings per share ........................   $      .33   $      .27   $      .67   $      .65
                                                    ----------   ----------   ----------   ----------
Diluted earnings per share ......................   $      .33   $      .27   $      .67   $      .65
                                                    ----------   ----------   ----------   ----------
</TABLE>

      Options to purchase 11,000 shares of the Company's common stock have been
excluded for the three and six months ended July 31, 2005, as their inclusion
would be anti-dilutive.


                                                                               8
<PAGE>

7.    Revolving Credit Facility

      At July 31, 2005, the balance outstanding under our new $25 million five
year revolving credit facility amounted to $1.88 million. The credit facility is
collateralized by substantially all of the assets of the Company. The credit
facility contains financial covenants, including, but not limited to, fixed
charge ratio, funded debt to EBIDTA ratio, inventory and accounts receivable
collateral coverage ratio, with respect to which the Company was in compliance
at July 31, 2005 and for the period then ended. The weighted average interest
rate for the six month period ended July 31, 2005 was 3.94%

8.    Major Supplier

      We purchased 72.5% of our raw materials from one supplier during the
six-month period ended July 31, 2005. We expect this relationship to continue
for the foreseeable future. If required, similar raw materials could be
purchased from other sources; however, our competitive position in the
marketplace could be adversely affected.

9.    Stock Based Compensation

      We have adopted the disclosure provisions of SFAS No. 123(R), "Accounting
for Stock-Based Compensation" (SFAS 123(R)). In compliance with SFAS 123, the
Company applies APB Opinion No. 25, "Accounting for Stock Issued to Employees,"
and related interpretations in accounting for its plans and does not recognize
compensation expense for its employee stock-based compensation plans. We have
also adopted the disclosure provisions of SFAS No. 148, "Accounting for
Stock-Based Compensation - Transition and Disclosure." This pronouncement
requires prominent disclosures in both annual and interim financial statements
about the method of accounting for stock-based employee compensation and the
effect of the method used on reporting results. If we had elected to recognize
compensation expense based upon the fair value at the date of grant for awards
under these plans, consistent with the methodology prescribed by SFAS 123(R),
the effect on the Company's net income and earnings per share as reported would
be reduced for the quarters and six months ended July 31, 2005 and 2004 to the
pro forma amounts indicated below:

<TABLE>
<CAPTION>
                                                Three Months Ended           Six Months Ended
                                                    July 31,                    July 31,
                                                2005          2004          2005          2004
                                                ----          ----          ----          ----
<S>                                         <C>           <C>           <C>           <C>
Net income as reported                      $ 1,648,210   $ 1,142,630   $ 3,361,187   $ 2,567,965

Less:
Option expense based on fair value method            --        11,186         9,627        11,186
                                            -----------   -----------   -----------   -----------
     Pro forma                              $ 1,648,210   $ 1,131,444   $ 3,351,560   $ 2,556,779
                                            -----------   -----------   -----------   -----------
Basic earnings per common share
     As reported                            $       .33   $       .27   $       .67   $       .65
                                            -----------   -----------   -----------   -----------
     Pro forma                              $       .33   $       .27   $       .67   $       .65
                                            -----------   -----------   -----------   -----------
Diluted earnings per common share
     As reported                            $       .33   $       .27   $       .67   $       .65
                                            -----------   -----------   -----------   -----------
     Pro forma                              $       .33   $       .27   $       .67   $       .65
                                            -----------   -----------   -----------   -----------
</TABLE>


                                                                               9
<PAGE>

      The fair value of these options was estimated at the date of grant using
the Black-Scholes option-pricing model with the following assumptions for the
quarters and six months ended July 31, 2005 and 2004: expected volatility of 87%
and 64%, respectively; risk-free interest rate of 3.6% and 2.93%, respectively;
expected dividend yield of 0.0%; and expected life of six years. All stock-based
awards were fully vested at July 31, 2005 and 2004. Earnings per share and
options granted have been adjusted to reflect the 10% stock dividends to
stockholders of record as of April 30, 2005. During the three months ended July
31, 2005, no options were granted or exercised.

10.   Manufacturing Segment Data

      Domestic and international sales are as follows in millions of dollars:

                      Three Months Ended                Six Months Ended
                           July 31,                         July 31,
                    2005             2004             2005             2004
                    ----             ----             ----             ----
Domestic       $22.1    88.0%   $21.5    94.3%   $45.0    88.6%   $45.6    91.7%
International    3.0    12.0%     1.3     5.7%     5.8    11.4%     4.1     8.3%
               -----    -----   -----    -----   -----    -----   -----
Total          $25.1     100%   $22.8     100%   $50.9     100%   $49.7     100%
               -----    -----   -----    -----   -----    -----   -----

We manage our operations by evaluating each of our geographic locations. Our
North American operations include our facilities in Decatur, Alabama (primarily
the distribution to customers of the bulk of our products and the manufacture of
our chemical, glove and disposable products), Celaya, Mexico (primarily
disposable, glove and chemical suit production) and St. Joseph, Missouri
(primarily woven products production). We also maintain three manufacturing
facilities in China (primarily disposable and chemical suit production). Our
China facilities and our Decatur, Alabama facility produce the majority of the
Company's products. The accounting policies of these operating entities are the
same as those described in Note 1 to the Company's Annual Report on Form 10-K
for the year ended January 31, 2005. We evaluate the performance of these
entities based on operating profit which is defined as income before income
taxes, interest expense and other income and expenses. We have small sales
forces in Canada, Europe and China who sell and distribute products shipped from
the United States, Mexico or China. The table below represents information about
reported manufacturing segments for the three and nine months noted therein:

<TABLE>
<CAPTION>
                                                                         Three Months Ended     Six Months Ended
                                                                               July 31,             July 31,
                                                                     (in millions of dollars)(in millions of Dollars)

                                                                           2005       2004       2005       2004
                                                                           ----       ----       ----       ----
<S>                                                                       <C>        <C>        <C>        <C>
Net Sales:
         North America                                                    $26.6      $24.3      $53.9      $50.9
         China                                                              2.8        1.9        4.8        4.2
         Less inter-segment sales                                          (4.3)      (3.3)      (7.9)      (5.4)
                                                                          -----      -----      -----      -----
         Consolidated sales                                               $25.1      $22.9       50.8      $49.7
                                                                          -----      -----      -----      -----
Operating Profit:
         North America                                                    $ 1.6      $ 1.5      $ 3.8      $ 3.7
         China                                                               .7         .4        1.1         .6
         Less inter-segment profit (loss)                                   (.1)        --        (.1)        --
                                                                          -----      -----      -----      -----
         Consolidated profit                                              $ 2.2      $ 1.9      $ 4.8      $ 4.3
                                                                          -----      -----      -----      -----
Identifiable Assets (at Balance Sheet date or change during quarter):
         North America                                                    $2.00      $ 7.1      $57.1      $50.5
         China                                                               .9         .3        9.8        8.2
                                                                          -----      -----      -----      -----
         Consolidated assets                                              $2.90      $ 7.4      $66.9      $58.7
                                                                          -----      -----      -----      -----
Depreciation  and Amortization Expense:
         North America                                                    $ .19      $ .14      $  .3      $  .3
         China                                                              .10        .03         .2         .1
                                                                          -----      -----      -----      -----
         Consolidated depreciation expense                                $ .29      $ .17      $  .5      $  .4
                                                                          -----      -----      -----      -----
</TABLE>

                                                                              10
<PAGE>

11.   Effects of Recent Accounting Pronouncements

      In December 2004, the FASB issued SFAS No. 123(R), "Accounting for
Stock-Based Compensation" ("SFAS No. 123(R)"). SFAS No. 123(R) establishes
standards for the accounting for transactions in which an entity exchanges its
equity instruments for goods or services. This statement focuses primarily on
accounting for transactions in which an entity obtains employee services in
share-based payment transactions. SFAS No. 123(R) requires that the fair value
of such equity instruments be recognized as an expense in the historical
financial statements as services are performed. Prior to SFAS No. 123(R), only
certain pro forma disclosures of fair value were required. The provisions of
this statement are effective for the first annual reporting period that begins
after June 15, 2005. Management does not believe there will be a significant
impact as a result of adopting this statement

      In November 2004, the FASB issued Statement of Financial Accounting
Standards (SFAS) No. 151 "Inventory costs." This statement amends Accounting
Research Bulletin No. 43, Chapter 4, "Inventory Pricing" and removes the "so
abnormal" criterion that under certain circumstances could have led to the
capitalization of these items. SFAS No. 151 requires that idle facility expense,
excess spoilage, double freight and re-handling costs be recognized as
current-period charges regardless of whether they meet the criterion of "so
abnormal." SFAS 151 also requires that allocation of fixed production overhead
expenses to the costs of conversion be based on the normal capacity of the
production facilities. SFAS No. 151 is effective for all fiscal years beginning
after June 15, 2005. Management does not believe there will be a significant
impact as a result of adopting this statement.

      On December 16, 2004, the FASB issued SFAS No. 153, "Exchange of
Non-monetary Assets", an amendment of Accounting Principles Board ("APB")
Opinion No. 29, which differed from the International Accounting Standards
Board's ("IASB") method of accounting for exchanges of similar productive
assets. Statement No. 153 replaces the exception from fair value measurement in
APB No. 29, with a general exception from fair value measurement for exchanges
of non-monetary assets that do not have commercial substance. The statement is
to be applied prospectively and is effective for non-monetary asset exchanges
occurring in fiscal periods beginning after June 15, 2005. The Company does not
believe that SFAS No. 153 will have a material impact on its results of
operations or cash flows.

12.   Real Estate Purchases

      In April 2005, the Company entered into two separate real estate purchase
contracts, one with POMS and one with River Group, both related parties. The
Company has purchased the land and buildings in Decatur, Alabama that it has
leased from these related parties since their inception, POMS (1984) and River
Group (1999). The purchase price was $2,056,000 for the POMS property and
$925,000 for the River Group property pursuant to the average of three separate
and independent real estate appraisals. The partnerships were accounted for in
accordance with FIN46R and were reflected in the financial statements for the
fiscal year ended January 31, 2005.

      In contemplation of the real estate purchases, the Company entered into an
agreement, dated March 4, 2005, with an officer of Lakeland (who is a partner in
POMS & River Group) to acquire his interest for $565,367 ($411,200 for POMS and
$154,167 for River Group), at the same proportional valuation as the overall
property.


                                                                              11
<PAGE>

      On April 25, 2005 the Company closed on the real estate purchase contract
with POMS paying a net amount of $1,656,384 ($2,056,000-$411,200 already paid
+$11,584 in closing costs). The Company paid POMS the lease amount from February
1, 2005 until April 25, 2005 amounting to $86,157, which is charged to rent
expense.

      On May 25, 2005 the Company closed on the real estate purchase contract
with River Group paying a net amount of $774,519 ($925,000-$154,167 already paid
+$3,686 in closing costs). The Company paid River Group the lease amount from
February 1, 2005 until May 25, 2005 amounting to $63,157, which is charged to
rent expense.

      At April 30, 2005, the Company recorded the asset land value of $230,000,
the asset building value of $2,751,000, closing costs of $11,584 and a payable
to River Group in the amount of $770,833. The Company recorded the purchase of
the land and building from River Group as of April 30, 2005, since the contract
of sale was finalized and the closing was pending the release of an easement on
the property. Total rent expense for the two properties for the six months ended
July 31, 2005 amounted to $146,577. The Company recorded depreciation on each of
the two properties from the closing date forward.

      Upon conclusion of these two real estate purchase contracts, the Company
no longer has related party transactions requiring the recording of variable
interest entities under FIN46R. Other than the above entries, the Company has
not recorded the effects of FIN46R in the current fiscal year. The Company deems
any such impact to be immaterial.

      Building purchase in New York:

      On May 10, 2005 the Company purchased a 6,250 square foot office
condominium to serve as its Corporate Headquarters. The purchase price was
$640,000 plus $9,161 in closing costs. The lease on its current location
amounted to $51,202 annually and expired on June 30, 2005. The new address is
701 Koehler Suite 7, Ronkonkoma, NY 11779.

13.   Related Party Transactions

      Along with the asset purchase agreement, dated July 2005, between the
Company and Mifflin Valley, Inc., the Company entered into a five year lease
agreement with the seller (now an employee of the Company) to rent the
manufacturing facility at an annual rental of $55,560, or a per square foot
rental of $3.00. This amount was obtained from an independent appraisal at the
fair market rental value done prior to the acquisition.


                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations

      You should read the following summary together with the more detailed
business information and consolidated financial statements and related notes
that appeared in Form 10-K and Annual Report and in the documents that were
incorporated by reference into Form 10-K for the year ended January 31, 2005.
This document may contain certain "forward-looking" information within the
meaning of the Private Securities Litigation Reform Act of 1995. This
information involves risks and uncertainties. Our actual results may differ
materially from the results discussed in the forward-looking statements.

                                    Overview

      We manufacture and sell a comprehensive line of safety garments and
accessories for the industrial protective clothing and homeland security
markets. Our products are sold by our in-house sales force and independent sales
representatives to a network of over 800 safety and mill supply distributors.
These distributors in turn supply end user industrial customers such as
chemical/petrochemical, automobile, steel, glass, construction, smelting,
janitorial, pharmaceutical and high technology electronics manufacturers, as
well as hospitals and laboratories. In addition, we supply federal, state and
local governmental agencies and departments such as fire and police departments,
airport crash rescue units, the Department of Defense, Central Intelligence
Agency, Federal Bureau of Investigation, U.S. Secret Service and the Centers for
Disease Control.


                                                                              12
<PAGE>

      We have operated manufacturing facilities in Mexico since 1995 and in
China since 1996. Beginning in 1995, we moved the labor intensive sewing
operation for our limited use/disposable protective clothing lines to these
facilities. Our facilities and capabilities in China and Mexico allow access to
a less expensive labor pool than is available in the United States and permit us
to purchase certain raw materials at a lower cost than they are available
domestically. As we have increasingly moved production of our products to our
facilities in Mexico and China, we have seen improvements in the profit margins
for these products. We are at the half way point of moving production of our
reusable woven garments and gloves to these facilities and expect to complete
this process by the third quarter of fiscal 2006. As a result, we expect to see
profit margin improvements for these product lines as well.

Critical Accounting Policies and Estimates

      The preparation of our financial statements in conformity with accounting
principles generally accepted in the United States requires us to make estimates
and judgments that affect the reported amounts of assets, liabilities, net sales
and expenses, and disclosure of contingent assets and liabilities. We base
estimates on our past experience and on various other assumptions that we
believe to be reasonable under the circumstances and we periodically evaluate
these estimates.

      We believe the following critical accounting policies affect our more
significant judgments and estimates used in the preparation of our consolidated
financial statements.

      Revenue Recognition. We derive our sales primarily from our limited
use/disposable protective clothing and secondarily from our sales of high-end
chemical protective suits, fire fighting and heat protective apparel, gloves and
arm guards, and reusable woven garments. Sales are recognized when goods are
shipped to our distributors at which time title and the risk of loss passes.
Sales are reduced for sales returns and allowances. Payment terms are generally
net 30 days for United States sales and net 90 days for international sales.

      Inventories. Inventories include freight-in, materials, labor and overhead
costs and are stated at the lower of cost (on a first-in, first-out basis) or
market. Provision is made for slow-moving, obsolete or unusable inventory.

      Allowance for Doubtful Accounts. We establish an allowance for doubtful
accounts to provide for accounts receivable that may not be collectible. In
establishing the allowance for doubtful accounts, we analyze the collectibility
of individual large or past due accounts customer-by-customer. We establish
reserves for accounts that we determine to be doubtful of collection.

      Income Taxes and Valuation Reserves. We are required to estimate our
income taxes in each of the jurisdictions in which we operate as part of
preparing our consolidated financial statements. This involves estimating the
actual current tax in addition to assessing temporary differences resulting from
differing treatments for tax and financial accounting purposes. These
differences, together with net operating loss carry forwards and tax credits,
are recorded as deferred tax assets or liabilities on our balance sheet. A
judgment must then be made of the likelihood that any deferred tax assets will
be realized from future taxable income. A valuation allowance may be required to
reduce deferred tax assets to the amount that is more likely than not to be
realized. In the event we determine that we may not be able to realize all or
part of our deferred tax asset in the future, or that new estimates indicate
that a previously recorded valuation allowance is no longer required, an
adjustment to the deferred tax asset is charged or credited to net income in the
period of such determination. The Company's Federal Income Tax returns for the
fiscal years ended January 31, 2003 and 2004 are currently under audit by the
Internal Revenue Service. The final results of these audits cannot be estimated
by management. It is anticipated that the audits will be concluded by the end of
the third quarter of Fiscal 2006.

      Valuation of Goodwill and Other Intangible Assets. On February 1, 2002, we
adopted Statement of Financial Accounting Standards (SFAS) No. 142, "Goodwill
and Other Intangible Assets," which provides that goodwill and other intangible
assets are no longer amortized, but are assessed for impairment annually and
upon occurrence of an event that indicates impairment may have occurred.
Goodwill impairment is evaluated utilizing a two-step process as required by
SFAS No. 142. Factors that we consider important that could identify a potential
impairment include: significant underperformance relative to expected historical
or projected future operating results; significant changes in the overall
business strategy; and significant negative industry or economic trends. When we
determine that the carrying value of intangibles and goodwill may not be
recoverable based upon one or more of these indicators of impairment, we measure
any potential impairment based on a projected discounted cash flow method.
Estimating future cash flows requires our management to make projections that
can differ materially from actual results.


                                                                              13
<PAGE>

      In July 2005 (in a transaction which closed August 1, 2005) the Company
purchased Mifflin Valley, Inc. As a result of this purchase Goodwill was
recorded in the amount of $889,876 at July 31, 2005. The transaction may be
subject to certain adjustments.

Self-Insured Liabilities. We have a self-insurance program for certain employee
health benefits. The cost of such benefits is recognized as expense based on
claims filed in each reporting period and an estimate of claims incurred but not
reported during such period. Our estimate of claims incurred but not reported is
based upon historical trends. If more claims are made than were estimated or if
the costs of actual claims increases beyond what was anticipated, reserves
recorded may not be sufficient and additional accruals may be required in future
periods. We maintain separate insurance to cover the excess liability over set
single claim amounts and aggregate annual claim amounts.



                                                                              14
<PAGE>

Item 2.  LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
         MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Significant Balance Sheet Fluctuation July 31, 2005 as compared to January 31,
2005

      Cash and cash equivalents decreased by $2.07 million as the Company
purchased real property in Alabama and New York. Inventory increased $5.08
million as production increased for the second half demand and accelerated
purchases made on raw materials in anticipation of the July 1, 2005 price
increase. Goodwill of $.89 million recorded in July 2005 relates to the
acquisition of Mifflin Valley, Inc.

      Accounts payable increased with the accelerated purchase of raw materials
and a payable of $1.7 million for the purchase of Mifflin Valley, Inc.,
concluded on August 1, 2005. At July 31, 2005 the Company had an outstanding
loan balance of $1.88 million under its new facility with Wachovia Bank, N.A.
Total stockholder's equity increased by the net income for the period of $3.36
million

Six months ended July 31, 2005 as compared to the six months ended July 31, 2004

Net Sales. Net sales increased $1.1 million, or 2.2% to $50.8 million for the
six months ended July 31, 2005 from $49.7 million for the six months ended July
31, 2004. The increase was primarily due to customers buying forward as a result
of our selling price increase effective June 20, 2005, on Tyvek and TyChem
garments. Continued growth in sales by our Canadian and UK subsidiaries and the
acquisition of Mifflin Valley, Inc. added to this increase, offset partially by
decreased sales in chemical protection garments due to a softness in government
purchasing.

Gross Profit. Gross profit increased $1.1 million or 10.3% to $12.0 million for
the six months ended July 31, 2005 from $10.8 million for the six months ended
July 31, 2004. Gross profit as a percentage of net sales increased to 23.6% for
the six months ended July 31, 2005 from 21.8% for the six months ended July 31,
2004, primarily due to the continuation of cost reduction programs shifting
production from the US to China and Mexico and a selling price increase on our
Tyvek lines on June 20, 2005, partially offset by rising raw material costs.

Operating Expenses. Operating expenses increased $0.63 million, or 9.6% to $7.2
million for the six months ended July 31, 2005 from $6.6 million for the six
months ended July 31, 2005. As a percent of sales, operating expenses increased
to 14.2% for the six months ended July 31, 2005 from 13.2% for the six months
ended July 31, 2004. The $0.63 million increase in operating expenses in the six
months ended July 31, 2005 as compared to the six months ended July 31, 2004 was
principally due to increases (decreases) in:

                  Salaries                   $0.118 million
                  Sales commissions          $(0.275 million)
                  Sales related expenses     $0.09 million
                  Insurance                  $(0.044 million)
                  Pension reversal           $(0.048 million)
                  Consulting                 $0.113 million
                  Professional fees          $0.168 million
                  All other G&A              $0.30 million
                  Freight expenses           $0.119 million
                  Bad debt expenses          $0.054 million
                  Currency fluctuation       $0.034 million

      The above increases in Consulting and Professional Fees are a result of
compliance with Sarbanes-Oxley requirements.

Interest Expenses. Interest expenses decreased by $0.202 million for the six
months ended July 31, 2005 as compared to the six months ended July 31, 2004
because we paid off our credit facility in full on June 18, 2004 using the
proceeds of our secondary stock offering.


                                                                              15
<PAGE>

Income Tax Expense. Income tax expenses consist of federal, state, and foreign
income taxes. Income tax expenses increased $0.27 million, or 22.4%, to $1.48
million for the six months ended July 31, 2005 from $1.21 million for the six
months ended July 31, 2004. Our effective tax rate was 30.5% and 32.0% for the
six months ended July 31, 2005 and 2004, respectively. Our effective tax rate
varied from the federal statutory rate of 34% due primarily to lower foreign
taxes, partially offset by state taxes. Our effective tax rate declined due to
an increase in production in China.

Minority Interest. Minority interest in net income of variable interest entities
decreased $0.1 million for the six months ended July 31, 2005 as a result of the
purchase in fiscal 2006 of the related party property that was accounted for
under FIN46R during fiscal 2005. As a result, those entities were consolidated
in our statement of income for the six months ended July 31, 2004.

Net Income. Net income increased $0.793 million, or 30.9% to $3.36 million for
the six months ended July 31, 2005 from $2.57 million for the six months ended
July 31, 2004. The increase in net income primarily resulted from cost reduction
programs and the continuing production shifts from the U.S. to China and Mexico,
partially offset by rising raw material costs.

Three months ended July 31, 2005 as compared to the three months ended July 31,
2004

Net Sales. Net sales increased $2.2 million, or 9.8%, to $25.1 million for the
three months ended July 31, 2005 from $22.8 million for the three months ended
July 31, 2004. The increase was primarily due to customers buying forward as a
result of our selling price increase effective June 20, 2005, on Tyvek and
TyChem garments. Sales also increased due to the Mifflin Valley, Inc.
acquisition and to continued sales growth and customer base in our Canadian and
U.K. subsidiaries. This increase was partially offset by a decrease in chemical
suit sales due to a shift to more low-end garments and fewer high-end, higher
margin garments sold in the second quarter last year.

Gross Profit. Gross profit increased $.93 million, or 19.2%, to $5.8 million for
the three months ended July 31, 2005 from $4.9 million for the three months
ended July 31, 2004. Gross profit as a percentage of net sales increased to
23.1% for the three months ended July 31, 2005 from 21.3% for the three months
ended July 31, 2004.

Operating Expenses. Operating expenses increased $0.6 million, or 20.0% to $3.6
million for the three months ended July 31, 2005 from $3.0 million for the three
months ended July 31, 2004. As a percent of sales, operating expenses increased
to 14.3% for the three months ended July 31, 2005 from 13.1% for the three
months ended July 31, 2004. The $1.0 million increase in operating expenses in
the three months ended July 31, 2005 as compared to the three months ended July
31, 2004 was principally due to increases (decreases) in:

                    Freight expenses         $0.058 million
                    Salaries                 $0.087 million
                    Insurance                $0.112 million
                    Consulting               $0.030 million
                    Professional fees        $0.105 million
                    All other G&A            $0.143 million
                    Currency fluctuation     $0.027 million
                    Bad Debts                $0.038 million

      The above increases in Consulting and Professional Fees are a result of
compliance with Sarbanes-Oxley requirements.

Interest Expense. Interest expenses decreased by $0.07 million for the three
months ended July 31, 2005 as compared to the three months ended July 31, 2004
because we paid off our credit facility in full on June 18, 2004 using the
proceeds of our secondary stock offering.

Income Tax Expenses. Income tax expenses consist of federal, state and foreign
income taxes. Income tax expense increased $0.135 million, or 27.9% to $0.62
million for the three months ended July 31, 2005 from $0.485 million for the
three months ended July 31, 2004. Our effective tax rate was 27.3% and 29.8% in
the three months ended July 31, 2005 and 2004, respectively. Our effective tax
rate varied from the federal statutory rate of 34% due


                                                                              16
<PAGE>

primarily to lower foreign tax rates, partially offset by state taxes. Our
effective tax rate declined due to an increase in production in China.

Minority Interest. Minority interest in net income of variable interest entities
decreased $0.176 million for the three months ended July 31, 2005 as a result of
the purchase in fiscal 2006 of the related party property that was accounted for
under FIN46R during fiscal 2005. As a result, those entities were consolidated
in our statement of income for the three months ended July 31, 2005.

Net Income. Net income increased $0.51 million, or 44.2% to $1.65 million for
the three months ended July 31, 2005 from $1.14 million for the three months
ended July 31, 2004. The increase in net income primarily resulted from cost
reduction programs and the continuing production shifts from the U.S. to China
and Mexico, partially offset by rising raw materials.

      Liquidity and Capital Resources

      Cash Flows
      ----------

      As of July 31, 2005 we had cash and cash equivalents of $7.1 million and
working capital of $51.8 million, a decrease of $2.1 million and an increase of
$0.8 million, respectively, from January 31, 2005. Our primary sources of funds
for conducting our business activities have been from cash flow provided by
operations and borrowings under our credit facilities described below. We
require liquidity and working capital primarily to fund increases in inventories
and accounts receivable associated with our net sales and, to a lesser extent,
for capital expenditures.

      Net cash used in operating activities of $0.13 million for the six months
ended July 31, 2005 was due primarily to net income from operations of $3.4
million offset by a decrease in accounts payable of $0.45 million, an increase
in inventories of $4.4 million and an decrease in accounts receivable of $0.11
million. Net cash provided by operating activities of $0.96 million for the six
months ended July 31, 2004 was due primarily to net income from operations of
$2.6 million, a decrease in accounts receivable of $0.54 million, and an
increase in accounts payable of $0.029 million, offset in part by an increase in
inventories of $2.9 million.

      Net cash used in investing activities of $3.8 million and $4.9 million in
the six months ended July 31, 2005 and 2004, respectively, was due to purchases
of property and equipment and for marketable securities in 2004. Net cash
provided by financing activities in the six months ended July 31, 2004 was
primarily attributable to borrowings under our credit facilities and to the
proceeds from the secondary stock offering in 2004.

      We currently have one credit facility - a $25 million revolving credit, of
which we had $1.88 million of borrowings outstanding as of July 31, 2005; on
July 10, 2005 the Company entered into a $25 million five year secured revolving
loan agreement to replace the former two facilities, one of which was to expire
on July 31, 2005. Our credit facility requires that we comply with specified
financial covenants relating to fixed charge ratio, debt to EBIDTA coverage, and
inventory and accounts receivable collateral coverage ratios. These restrictive
covenants could affect our financial and operational flexibility or impede our
ability to operate or expand our business. Default under our credit facility
would allow the lender to declare all amounts outstanding to be immediately due
and payable. Our lender has a security interest in substantially all of our
assets to secure the debt under our credit facility. As of July 31, 2005, we
were in compliance with all covenants contained in our credit facility.

      We believe that our current cash position of $7.1 million, our cash flow
from operations along with borrowing availability under our $25 million
revolving credit facility will be sufficient to meet our currently anticipated
operating, capital expenditures and debt service requirements for at least the
next 12 months.

      Capital Expenditures
      --------------------

      Our capital expenditures principally relate to purchases of manufacturing
equipment, computer equipment, leasehold improvement and automobiles, as well as
payments related to the construction of our facilities in China. Our facilities
in China are not encumbered by commercial bank mortgages and thus Chinese
commercial mortgage loans may be available with respect to these real estate
assets if we need additional liquidity. Our capital expenditures are expected to
be approximately $4.8 million in total; $3.6 million to purchase our Decatur
Alabama facilities and similar facilities adjacent to our New York corporate
headquarters (all currently rented for $615,000 annually) and $1.2 million for
capital equipment primarily computer equipment and apparel manufacturing
equipment in fiscal 2006.


                                                                              17
<PAGE>

      Item 3.  Quantitative and Qualitative Disclosures About Market Risk

There have been no significant changes in market risk from that disclosed in our
Annual Report on Form 10-K for the fiscal year ended January 31, 2005.

      Item 4.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures - Lakeland Industries, Inc.'s
Chief Executive Officer and Chief Financial Officer, after evaluating the
effectiveness of Lakeland Industries, Inc.'s disclosure controls and procedures
(as defined in Rule 13a-15(e) or 15d-15(c) under the Securities Exchange Act) as
of the end of the period covered by this report, have concluded that, based on
the evaluation of these controls and procedures, the Company's disclosure
controls and procedures were effective.

Changes in Internal Control Over Financial Reporting - Lakeland Industries,
Inc.'s management, with the participation of Lakeland Industries, Inc.'s Chief
Executive Officer and Chief Financial Officer, has evaluated whether any change
in the Company's internal control over financial reporting occurred during the
second quarter of fiscal 2006. Based on that evaluation, management concluded
that there has been no change in Lakeland Industries, Inc.'s internal control
over financial reporting during the second quarter of fiscal 2006 that has
materially affected, or is reasonably likely to materially affect, Lakeland
Industries, Inc.'s internal control over financial reporting.

      Through the eighteen months ended July 31, 2005 additional expense has
been incurred relating to documenting and testing the systems of internal
controls. The Company hired an internal auditor in July 2004 and has contracted
with an independent consultant for services related to overall Sarbanes-Oxley
Act compliance and more specifically Section 404, in February 2004. The total
amount expensed so far is approximately $521,000 and is expected to increase in
fiscal 2006 by $250,000 due to the hiring of additional accounting personnel.

      PART II. OTHER INFORMATION

Items 1, 2, 3 and 5 are not applicable.

Item 4. Submission of Matters to a vote of Security Holders The annual
        meeting of shareholders of the Company (the "Annual Meeting") was held
        on June 15, 2005 in Ronkonkoma, New York. The Company had 4,560,885
        shares of common stock outstanding as of April 25, 2005, the record date
        for the Annual Meeting.

Proposal 1 - Election of Directors

        The candidates listed below were duly elected to the Board of Directors
at the Annual Meeting by the tally indicated.

        Candidate                                  Votes in Favor  Votes Witheld
        ------------------------------------------------------------------------
        Christopher J. Ryan                          3,811,694       508,008
        Michael E. Cirenza                           4,283,854        35,848
        John Kreft                                   4,283,959        35,749

Proposal 2 - Ratification of Auditors for fiscal 2005 and 2006

        Holtz Rubenstein Reminick, LLP               4,285,189        34,513

Item 6.  Exhibits and Reports on Form 8-K:

         a- 10.11*, Loan Agreement dated July 7, 2005 between Lakeland
            Industries, Inc. and Wachovia Bank, N.A.

            10.15* Asset Purchase Agreement, dated July, 2005, between Lakeland
            Industries, Inc., and Mifflin Valley, Inc.

            10.16* Lease Agreement, dated July 2005 between Lakeland Industries,
            Inc. and M. Gallen.

            10.17* Employment Contract, dated July 2005, between Lakeland
            Industries, Inc. and M. Gallen.


                                                                              18
<PAGE>

         b- On June 6, 2005, the Company filed a Form 8-K for the purpose of
            furnishing under Items 2.02 and 9.01 a press release announcing
            results of operations for the quarter ended April 30, 2005.

            On June 6, 2005, the Company filed a Form 8-K under Item 2.02,
            relating to a Notice of Teleconference call for 4:30 PM June 9,
            2005.


            On July 11, 2005, the Company filed a Form 8-K under Item 1.01
            regarding the closing on a $25 million secured revolving line of
            credit for a five year term with Wachovia Bank, N.A.

            On July 19, 2005, the Company filed a Form 8-K under Items 1.01 and
            8.01 regarding the acquisition of Mifflin Valley, Inc., Lakeland
            joins New Russell Microcap Index and Lakeland raises garment prices.

            ---------------------
            * Filed herein


                                                                              19
<PAGE>


                                   SIGNATURES
                                   ----------

   Pursuant to the requirements of Section 13 or 15 (d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.


                                     LAKELAND INDUSTRIES, INC.
                                              (Registrant)


Date:  September 7, 2005             /s/ Christopher J. Ryan
                                     -----------------------
                                     Christopher J. Ryan,
                                     Chief Executive Officer, President,
                                     Secretary and General Counsel
                                     (Principal Executive Officer and
                                      Authorized Signatory)


Date: September 7, 2005              /s/Gary Pokrassa
                                     ----------------
                                     Gary Pokrassa,
                                     Chief Financial Officer
                                     (Principal Accounting Officer and
                                      Authorized Signatory)





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