LOS ANGELES, Calif. — May 13, 2010 — Talon International, Inc. (OTCBB:TALN), a leading global supplier of zippers, apparel fasteners, trim and interlining products, reported financial results for the first quarter ended March 31, 2010.

Highlights

• Total Sales for the first quarter of 2010 increase 26% over the first
  quarter of 2009.
• Zipper Sales for the first quarter of 2010 increase 48% over the same
  period in 2009.

Financial Results

Sales for quarter ended March 31, 2010 totaled $8.2 million, representing an increase of $1.7 million or 26.4% from the same period in 2009. Zipper product sales were $4.9 million in the quarter ended March 31, 2010, an increase of 48.1% from the same period in 2009. For the quarter ended March 31, 2010 the Company reported Trim product sales of $3.3 million compared to $3.2 million for quarter ended March 31, 2009. The Tekfit product line generated no sales for the quarter ended March 31, 2010, reflecting a decline of $14,000 from the quarter ended March 31, 2009.

The sales increase in the first quarter 2010 reflects improved worldwide economic conditions for Talon’s customers in the apparel industry, higher demand for our Talon zipper products, successful introductions of new products for existing customers, and the addition of new customers.

The gross margin for the quarter ended March 31, 2010 was 29.6% of sales as compared to 30.5% for the same period in 2009. The Talon Zipper group for the quarter ended March 31, 2010 reflected a gross margin of 26.6% of sales as compared to 24.3% for the same period in 2009. Gross margin in the Trim product group for quarter ended March 31, 2010 was 34.7% of sales compared to 36.9% of the same period in 2009.

Sales and marketing expenses for quarter ended March 31, 2010 were $0.7 million, or 8.0% of sales, as compared to $0.7 million, or 10.8% of sales, for the same period in 2009. Sales expenses decreased as a percentage of sales primarily due to lower related expenses in mainland China and a reduction in regional support staffing. General and administrative expenses for the quarter ended March 31, 2010 were $2.0 million or 23.7% of sales, as compared to $1.8 million or 27.9% of sales for the same period in 2009. The increase in general and administrative expenses mainly reflected higher personnel expenses.

For quarter ended March 31, 2010 the loss from operations was $176,000 as compared to $535,000 for the same period in 2009. The improvement of $359,000 or 67.2% resulted from higher gross margins of $452,000 partially offset by slightly higher operating expenses of $93,000. The net loss of $0.8 million or ($0.04) per share for the quarter ended March 31, 2010 compared favorably to a net loss of $1.2 million or ($0.06) per share for the same period in 2009.

Conference Call

Talon International will hold a conference call on Thursday, May 13, 2010, to discuss its first quarter 2010 financial results. Talon’s CEO Lonnie D. Schnell will host the call starting at 4:30 P.M. Eastern Time. A question and answer session will follow the presentation.

To participate in the call, dial the appropriate number 5-10 minutes prior to the start time, request the Talon International conference call and provide the conference ID.

Date: Thursday, May 13, 2010
Time: 4:30 pm Eastern (1:30 pm Pacific)
Domestic callers: 1-800-895-1241
International callers: 1-785-424-1056
Conference ID#: 7TALON

A replay of the call will be available later that evening and will be accessible until June 11, 2010. The replay call-in number is 1-800-753-4606 for domestic callers and 1-402-220-2103 for international. Passcode not required.

About Talon International, Inc.