Second Quarter 2013 Highlights:

Second Quarter 2013 Financial Results

Sales for the quarter ended June 30, 2013 were $16.6 million, reflecting a 26.3% increase over the same period in 2012. Sales for the second quarter of 2013 included zipper sales of $9.5 million, up 37.9% from the second quarter of 2012, and Trim sales of $7.1 million, up 13.4% from the prior year period.

In addition, sales of the Company's advanced fabric technology TekFit increased 40.9% over the same period last year, albeit off a small base. The sales gains reflect increased business from Talon's current customers as well as the addition of new brands and retailers to the Company's customer base.

"We are pleased with our second quarter results, and our ability to deliver our fourth consecutive double-digit, quarterly increase in revenues over the prior-year results," noted Lonnie Schnell, Talon's CEO. "This year we have continued to execute on our vision for Talon's future by expanding our global sales teams and opening new sales offices in Europe and Asia.

We are capitalizing on the opportunities we see to expand our reach and enter into new and promising geographies. Importantly, now that we have successfully eliminated the preferred stock liabilities, we are better capitalized, and even better positioned, to compete and grow significantly."

Gross profit for the second quarter of 2013 was $5.6 million, or 33.4% of sales, as compared to $4.4 million, or 33.1% of sales, for the same quarter in 2012. The increase in gross profit was primarily attributable to greater overall sales volumes.

Operating expenses for the second quarter of 2013 were $4.0 million, or 23.8% of sales, as compared to $3.4 million, or 25.7% of sales, in the second quarter of 2012. Sales and marketing expenses of $1.5 million increased 31.4% from the same quarter in 2012 reflecting continued investment in strengthening Talon's sales force in the U.S., Europe and Asia and increased sales commissions associated with the higher sales volumes. General and administrative expenses for the period totaled $2.4 million, an increase of 9.6%, attributable to higher net compensation costs.

Net income for the quarter ended June 30, 2013 was $1,263,000 as compared to net income of $671,000 for the same quarter in 2012.