Talon International Reports Second Quarter 2009 Financial Results

LOS ANGELES, CA--(Marketwire - August 14, 2009) - Talon International, Inc. (OTCBB: TALN), a
leading global supplier of zippers, apparel fasteners, trim and interlining
products, reported financial results for the second quarter ended June 30,
2009.

Summary

-- Sales for the 2nd Quarter 2009 totaled $12.6 million, vs. $17.0
million in 2008.
-- Net income for the 2nd Quarter totaled $75,000 in 2009, vs. $598,000
in 2008.
-- Net loss year-to-date totaled $1.1 million in 2009, vs. a net loss of
$1.2 million in 2008.

Financial Results

"The global economic recession continued to significantly restrict consumer
spending through the second quarter of 2009 and this translated into much
lower demand for our zipper and trim products," said Lonnie Schnell,
Talon's CEO. "Although the initial panic within the apparel industry seems
to have subsided, and encouraging signs are emerging, consumers remain
cautious about their spending and the retail brands continue to limit their
buying and lower their inventory levels."

Sales for the second quarter of 2009 totaled $12.6 million, a decrease of
$4.4 million or 26% from 2008. The decrease in sales for the quarter was a
direct result of the impact of the economic decline on the apparel industry
and the corresponding lower demand for the apparel products that brand
suppliers purchase from the Company. For the second quarter of 2009 the
Company reported Talon® zipper sales of $7.7 million as compared to $11.4
million for the same period in 2008. Trim product sales for the second
quarter of 2009 were $4.9 million, as compared to $5.5 million for the same
period in 2008, and Tekfit product sales for the second quarter were
$23,000 compared to $36,000 in 2008.

Sales for the six months ended June 30, 2009 were $19.1 million as compared
to $27.0 million for the same period in 2008, a decrease of $7.9 million or
29%. Talon® zipper sales for the first six months of 2009 totaled $11.0
million as compared to $17.1 million in the prior year. Trim product sales
for the first six months of 2009 were $8.0 million, a decrease of $1.9
million from the same period in 2008. Tekfit product sales for the first
six months of 2009 were $37,000 compared to $44,000 for the first six
months of 2008.

For the second quarter of 2009 net income of $75,000 or $0.01 per share was
reported by the Company, as compared to net income of $598,000 or $0.03 per
share for the second quarter in 2008. For the six-months ended June 30,
2009 the Company reported a net loss of $1.1 million or a loss of $0.05 per
share, as compared to a net loss of $1.2 million or $0.06 per share for the
six months ended June 30, 2008.

"The cost reduction actions we implemented late in 2008 in response to the
economic decline have substantially lessened the impact of the
significantly lower revenues in 2009," said Schnell. "For the first six
months of 2009, the benefits of these actions helped deliver expense
reductions that more than offset the effects of the recession on our sales
levels. As the apparel industry recovers, these actions along with our
continued emphasis on new nominations, new product development and our
commitment to superior customer service we believe will yield measurable
improvements in earnings compared to the prior year."

Selling expenses for the second quarter of 2009 were $531,000, reflecting a
reduction of $237,000 compared to the same period in 2008. General and
administrative expenses for the second quarter of 2009 were $2.2 million,
as compared to $3.1 million for the second quarter of 2008. The decrease
of $0.9 million in general and administrative expenses is principally
attributable to reductions in our global workforce to align our costs with
current sales levels.

The net income for the second quarter and net loss for the first six months
of 2009 includes net interest expense of $661,000 and $1,298,000,
respectively. The interest expense for 2009 reflects an increase of
$18,000 and $105,000 for the second quarter and six months ended June 30,
2009, respectively, as compared to net interest expense for the same
periods in 2008. The increased interest cost in 2009 over 2008 was
primarily the result of slightly increased borrowings under the debt
facility with CVC California, LLC (formerly Bluefin Capital, LLC).

Conference Call

Talon International will hold a conference call on Monday, August 17, 2009,
to discuss its second quarter 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: Monday, August 17, 2009
Time: 4:30 pm Eastern (1:30 pm Pacific)
Domestic callers: 1-800-894-5910
International callers: 1-785-424-1052
Conference ID#: 7TALON

A replay of the call will be available later that evening and will be
accessible until September 17, 2009. The replay call-in number is
1-800-723-0479 for domestic callers and
1-402-220-2650 for international. Pass code not required.

Forward-Looking Statements

This news release contains forward-looking statements made in reliance upon
the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are not guarantees of future
performance and are inherently subject to uncertainties and other factors
which could cause actual results to differ materially from the
forward-looking statement. These statements are based upon, among other
things, assumptions made by, and information currently available to,
management, including management's own knowledge and assessment of the
company's industry, competition and capital requirements, and the potential
for growth in zipper sales and other products. Factors which could cause
actual results to differ materially from these forward-looking statements
include global economic conditions, pricing pressures and other competitive
factors, our ability to reduce costs, and the unanticipated loss of major
customers, and the level of acceptance of the company's products by
retailers and consumers. These and other risks are more fully described in
the company's filings with the Securities and Exchange Commission,
including the Company's most recently filed Annual Report on Form 10-K and
Quarterly Report on Form 10-Q, which should be read in conjunction herewith
for a further discussion of important factors that could cause actual
results to differ materially from those in the forward-looking statements.
The company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

About Talon International, Inc.

Talon International, Inc. is a global supplier of apparel fasteners, trim
and interlining products to manufacturers of fashion apparel, specialty
retailers, mass merchandisers, brand licensees and major retailers. Talon
manufactures and distributes zippers and other fasteners under its Talon®
brand, known as the original American zipper invented in 1893. Talon also
designs, manufactures, engineers, and distributes apparel trim products and
specialty waistbands under its trademark names, Talon, Tag-It and TekFit,
to more than 60 apparel brands and manufacturers including Wal-Mart, J.C.
Penney, Abercrombie and Fitch, Juicy Couture, Ralph Lauren, Victoria's
Secret, Target Stores, and Express. The company has offices and facilities
in the United States, Hong Kong, China, India and Bangladesh.

TALON INTERNATIONAL, INC.
Consolidated Statements of Operations
(Unaudited)

Three Months Ended June 30, Six Months Ended June 30,
--------------------------- --------------------------
2009 2008 2009 2008
------------- ------------ ------------ ------------
Net sales $ 12,583,765 $ 17,020,629 $ 19,099,519 $ 27,006,118
Cost of goods sold 9,022,318 12,119,725 13,553,905 19,347,249
------------- ------------ ------------ ------------
Gross profit 3,561,447 4,900,904 5,545,614 7,658,869

Selling expenses 531,365 767,865 1,046,909 1,487,828
General and
administrative
expenses 2,198,037 3,082,164 4,201,830 6,430,400
------------- ------------ ------------ ------------
Total operating
expenses 2,729,402 3,850,029 5,248,739 7,918,228

Income (loss) from
operations 832,045 1,050,875 296,875 (259,359)
Interest expense,
net 661,087 643,130 1,298,038 1,192,644
------------- ------------ ------------ ------------
Income (loss)
before provision
for (benefit from)
income taxes 170,958 407,745 (1,001,163) (1,452,003)
Provision for
(benefit from)
income taxes 96,103 (190,412) 102,510 (211,416)
------------- ------------ ------------ ------------
Net Income (loss) $ 74,855 $ 598,157 $ (1,103,673) $ (1,240,587)
============= ============ ============ ============
Basic income (loss)
per share $ 0.01 $ 0.03 $ (0.05) $ (0.06)
============= ============ ============ ============
Diluted income
(loss) per share $ 0.01 $ 0.03 $ (0.05) $ (0.06)
============= ============ ============ ============

Weighted average
number of common
shares outstanding:
Basic 20,291,433 20,291,433 20,291,433 20,291,433
============= ============ ============ ============
Diluted 20,291,433 20,291,433 20,291,433 20,291,433
============= ============ ============ ============

TALON INTERNATIONAL, INC.
Consolidated Balance Sheets

June 30, December 31,
2009 2008
------------ ------------
Assets (Unaudited)
Current Assets:
Cash and cash equivalents $ 2,215,007 $ 2,399,717
Accounts receivable, net 5,409,918 3,856,613
Inventories, net 1,935,198 1,669,149
Prepaid expenses and other current assets 651,744 473,955
------------ ------------
Total current assets 10,211,867 8,399,434

Property and equipment, net 2,144,479 2,084,244
Fixed assets held for sale 407,009 407,655
Due from related parties 200,000 200,000
Intangible assets, net 4,110,751 4,110,751
Other assets 288,761 400,494
------------ ------------
Total assets $ 17,362,867 $ 15,602,578
============ ============

Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable $ 8,930,217 $ 7,674,768
Accrued legal costs 540,679 383,075
Other accrued expenses 2,465,014 2,292,681
Revolver note payable 4,990,483 -
Term note payable, net of discounts 9,112,891 -
Demand notes payable to related parties 225,810 222,264
Current portion of capital lease obligations 95,014 182,444
Current portion of notes payable 46,427 144,064
------------ ------------
Total current liabilities 26,406,535 10,899,296

Capital lease obligations, net of current
portion 8,704 1,910
Revolver note payable, net of current portion - 4,638,988
Term notes payable, net of discounts and
current portion - 8,067,428
Other long term liabilities 718,925 756,888
------------ ------------
Total liabilities 27,134,164 24,364,510
------------ ------------

Commitments and contingencies (Note 13)

Stockholders' Deficit:
Preferred stock Series A, $0.001 par value;
250,000 shares authorized; no shares issued
or outstanding - -

Common stock, $0.001 par value, 100,000,000
shares authorized; 20,291,433 shares
issued and outstanding at June 30, 2009
and December 31, 2008 20,291 20,291
Additional paid-in capital 54,859,305 54,769,072
Accumulated deficit (64,754,705) (63,651,032)
Accumulated other comprehensive income 103,812 99,737
------------ ------------
Total stockholders' deficit (9,771,297) (8,761,932)
------------ ------------
Total liabilities and stockholders' deficit $ 17,362,867 $ 15,602,578
============ ============