Charles & Colvard Moissanite Awareness Up From 7.8% to 10.5%

Charles & Colvard, Ltd., the global source of created jewel moissanite, saw its net sales increase 3 percent in the three months ended December 31, 2006 to US$12.1 million as compared to US$11.7 million in the fourth quarter of 2005.

Charles & Colvard’s domestic sales in the fourth quarter increased 1 percent to US$11.0 million compared to the fourth quarter of 2005. International sales for the fourth quarter increased 31 percent to US$1.1 million, with strong results from all key geographic regions. Total shipments of 69,700 carats for the current period were 1 percent more than the 68,900 carats shipped in the same period of 2005. Shipments of carats in the U.S. decreased 1 percent while international shipments of carats increased 32 percent.

“Our sales increase was attributable to the additional number of doors that sold moissanite jewelry in the fourth quarter. We believe the strength of our overall sell-thru levels were negatively impacted as some of our leading department store chains and mall jewelry retailers increased prices of moissanite products which led to a slower number of product reorders in the fourth quarter. We continue to work aggressively to add new points of distribution and believe these efforts will result in continued improvement to our business. We added approximately 270 doors in the fourth quarter of 2006 primarily from Kohl’s, Zales Canada and Sears. We continue to work with our existing retailers and their moissanite jewelry suppliers to broaden the existing moissanite collection and offer more styles at appropriate price points to increase same store sales activity. In addition, we continue to develop promising sales opportunities within home television shopping. HSN, one of the leading home television shopping networks, has agreed to increase the total number of programming hours dedicated to moissanite sales to 25 hours in fiscal 2007 compared to 9 in the prior year. We continue to work methodically to raise the profile of moissanite and believe that our marketing efforts over the past year have continued to raise customer awareness. The company received the results of a recently completed third party study that highlights moissanite consumer awareness levels. We are pleased to report that over the past year, consumer awareness for moissanite within the U.S. increased from 7.8 percent at the end of 2005 to 10.5 percent at the end of 2006,” explains Bob Thomas, President and Chief Executive Officer.

“As we look to 2007, we expect to continue to make progress with current customers and to further expand our customer base. We continue to make improvements to our infrastructure and improve the quality of management to properly service and expand the number of manufacturers and points of retail distribution. We will continue to work ambitiously to build consumer awareness and demand for moissanite jewelry to drive sales within our multiple channels of distribution. Overall, we are committed to building value for our shareholders and believe our planned initiatives have better positioned our company for future growth,” concludes Thomas.

Charles & Colvard 4Q Profit Rises

(AP) Charles & Colvard 4th-Quarter Earnings Climb 42 Percent As More Stores Sell Its Moissanite

Wednesday February 14, 4:55 pm ET

MORRISVILLE, N.C. (AP) -- Charles & Colvard Ltd. -- which makes moissanite, a lab-created, diamond-like stone -- on Wednesday posted a 42 percent rise in fourth-quarter profit as the company expanded its distribution network.

Net income increased to $1.3 million, or 7 cents per share, from $884,258, or 5 cents per share, a year ago.

Sales rose 3 percent to $12.1 million from $11.7 million a year ago, as the number of retailers selling moissanite increased. However, the company said its top department store chains and mall retailers raised prices on moissanite products, which hurt demand.

In the U.S., sales edged up 1 percent to $11 million, while international sales jumped 31 percent to $1.1 million.

The company shipped 69,700 carats last quarter, compared with 68,900 carats in the 2005 quarter. U.S. shipments slipped 1 percent, while international shipments increased 32 percent.

Analysts surveyed by Thomson Financial expected earnings of 6 cents per share on sales of $13.1 million.

Charles & Colvard shares rose 11 cents to $7.82 in the aftermarket.

Charles & Colvard Moissanite: Born From a Star!

Charles & Colvard Created Moissanite was inspired by the discovery of natural moissanite by Dr. Henri Moissan in 1893 from fragments of a meteorite from the Diablo Canyon in Arizona. Moissanite was named in Dr. Moissan’s honor in 1905 by the Tiffany’s lead gemologist.

Scientists understood the potential of moissanite as a gemstone and attempted to manufacture the jewel. In 1998, Charles & Colvard, Ltd, inspired by this history and applying a blend of art and science introduced this exceptional new jewel to the world.

Charles & Colvard Moissanite, born from a star, possess more fire and brilliance than any other jewel.

A Moissanite Valentine

Moissanite Jewel, a fellow investor in Charles & Colvard Ltd and moderator of the Moissanite Jewels by Charles & Colvard message board on Investor Village found an excellent blog entry on The Bemused Muse web log. The “muse” is Autrice DelDrago, a scientist, who “does not fancy diamonds”. However, she certainly enjoys her Charles and Colvard Moissanite studs she received from her “Better Half” for Valentines Day.

If you too want to make your better half as happy as Ms. DelDrago click on Valentine's Day gifts.

Charles & Colvard Announces Reporting Date for Fourth Quarter Fiscal 2006 Financial Results

MORRISVILLE, N.C.--(BUSINESS WIRE)--Charles & Colvard, Ltd. (NASDAQ: CTHR - News) today announced that the Company will report its fiscal fourth quarter 2006 financial results on Wednesday, February 14, 2007 after the market close. The Company will also hold a conference call with senior management to discuss the financial results at 4:45 p.m. EST on February 14, 2007.

Interested parties may participate in the call by dialing (913) 981-4911. The conference call will also be broadcast live over the Internet. To listen to the live webcast of the event, please go to www.moissanite.com and click on the Investor Relations section where conference calls are posted. Please go to the website 15 minutes early to download and install any necessary audio software.

A replay of the call will be available from February 14, 2007 through February 21, 2007. To access the telephone replay, participants should dial (719) 457-0820. The access code for the replay is 4454523.

ABOUT CHARLES & COLVARD, LTD.

Charles & Colvard, Ltd. (NASDAQ: CTHR - News), based in the Research Triangle Park area of North Carolina, is the global sole-source of lab-created moissanite, a unique, near-colorless jewel that is distinct from other gemstones and jewels based on its exceptional fire, brilliance, luster, durability and rarity. Currently used in fine jewelry, Charles & Colvard created Moissanite(TM) is primarily marketed to the self-purchasing woman as the perfect reward or indulgence for a woman celebrating her achievements, whether personal or professional, big or small. For more information, please access www.moissanite.com or www.charlesandcolvard.com.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements expressing expectations regarding our future and projections relating to products, sales, revenues and earnings are typical of such statements and are made under the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions and are not historical facts and typically are identified by use of terms such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue" and similar words, although some forward-looking statements are expressed differently.

All forward-looking statements are subject to the risks and uncertainties inherent in predicting the future. You should be aware that although the forward-looking statements included herein represent management's current judgment and expectations, our actual results may differ materially from those projected, stated or implied in these forward-looking statements as a result of many factors, including, but not limited to the Company's ability to manage growth effectively, dependence on Cree, Inc. as the current supplier of the substantial majority of the raw material, ability to develop a material second source of supply, dependence on a limited number of jewelry manufacturing customers, dependence on continued growth and consumer acceptance of the Company's products, in addition to the other risks and uncertainties described in more detail in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. We undertake no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur except as required by the federal securities laws, and you are urged to review and consider disclosures that we make in the reports that we file with the Securities and Exchange Commission that discuss other factors relevant to our business.

Contact:

Charles & Colvard
Jim Braun, CFO, 919-468-0399 Ext. 224
jbraun@moissanite.com
or
Investor Relations:
Integrated Corporate Relations
Bill Zima, 203-682-8200
wzima@icrinc.com

Charles & Colvard Moissanite on HSN

Give the gift of superior fire, luster, and brilliance that only moissanite and you possess to your Valentine for Valentine's Day. Here's your opportunity as HSN will be offering Charles & Colvard Created Moissanite on Thursday February 1^st. The following times are all Eastern Standard Time. Check for local cable listing for the HSN channel in your area:

Time (EST)	Show Title	Host	Guest
2 AM	Moissanite Jewelry	Kellie Olver	Bob Thomas
11 AM	Moissanite Jewelry	Shivan Sarna	Bob Thomas
8 PM	Moissanite Jewelry	Connie Craig	Bob Thomas

Wiki’s icky as a reference for Moissanite

Wikipedia is the free online encyclopedia often used by content writers as a source for a variety of topics. Wikipedia is open to participation for anyone who wants to contribute to the site. In this spirit of collaboration, information is compiled very efficiently and enables Wikipedia to construct a huge knowledge base. Because of Wikipedia’s free and open accessibility it is a very popular source of reference. On the other hand that very openness can be abused by participants with a biased agenda. Rather than be a steady source of reliable information, Wikipedia can easily become a propaganda tool. Such is the case with Charles & Colvard Created Moissanite.

Moissanite is fast becoming the hottest fine jewel available today, but consumer awareness is still very small – only 8% awareness. With such intense competition and “special interests” always vying for a greater share of the tremendously profitable Jewelry Market, misinformation campaigns about moissanite have emerged within many venues.

When you begin a search by entering “moissanite” in Wikipedia’s homepage, you are not directed to definitions or articles specifically about moissanite. Instead Wikipedia redirects your “moissanite” search to a page for its mineral composition - Silicon Carbide (SiC). More rationally, Wikipedia does have article entries for “diamond” and “cubic zirconia” that do not redirect search inquiries to the gemstones’ respective chemical components of Carbon and Zirconium Dioxide. This is just the beginning of how Wikipedia short-changes the publics’ efforts with online research, in order to properly find information about moissanite.

When you reach the SiC page, you’ll find an article about moissanite’s origins in the Discovery section of the article. Edward Goodrich Acheson is attributed as the discoverer of SiC “around” 1893. According to this article, Acheson developed an electric batch furnace to produce an SiC abrasive he called “carborundum”. This account is followed by a "later" discovery of SiC in a subsection called "In Nature" by Dr. Ferdinand Henri Moissan. That account reads as follows:

Naturally occurring moissanite is extremely rare, as it is not formed naturally in any quantity within the Earth, and thus is found only in tiny quantities in certain types of meteorite and as microscopic traces in corundum deposits and kimberlite. Virtually all of the silicon carbide sold in the world, including moissanite jewels, is synthetic. Natural moissanite was first found in 1905 as a small component of a meteorite in Arizona by Dr. Ferdinand Henri Moissan, after whom the material is named in the gem market. Moissan's discovery of naturally occurring SiC was disputed at first because his sample may have been contaminated by silicon carbide saw blades that were already on the market at that time.

However by cross-referencing this account in the Wikipedia article on Dr. Moissan, you will find this information:

In 1893, [Dr.] Moissan began studying fragments of a meteorite found in Meteor Crater near Diablo Canyon in Arizona. In these fragments he discovered minute quantities of a new mineral and, after extensive research, Moissan concluded that this mineral was made of silicon carbide. In 1905, this mineral was named Moissanite, in his honor.

Clearly there is a discrepancy because Dr. Moissan could not have discovered Moissanite in both 1893 and 1905. Fortunately, Mr. Bob Thomas, the CEO of Charles & Colvard related the correct version of moissanite’s discovery in a recent company presentation. As was told in his presentation, moissanite was indeed discovered by Dr. Henri Moissan in 1893 and in 1905 the gem was named in his honor by Tiffany’s lead gemologist of that time.

The misinformation presented about moissanite in the Silicon Carbide article, is false and is presented in a manner that belittles moissanite jewelry. Listed below are several affronts to moissanite that are quoted from throughout the referenced article:

• Moissanite is somewhat similar to diamond in several important ways: it is transparent and hard (9, although a patent states 9 1/4, on the Mohs scale compared to 10 for diamond).
  
  
• Moissanite is somewhat harder than common cubic zirconia.
  
  
• Unlike diamond, Moissanite is strongly birefringent. This is a desirable quality in some optical applications, but is not desirable in gemstones. For this reason, Moissanite jewels are cut along the optic axis of the crystal to minimize birefringent effects.
  
  
• Moissanite has a slightly higher index of refraction (brilliance) and much greater dispersion (fire) than diamond.
  
  
• [M]oissanite is easy to distinguish from diamond, as it is doubly refractive.
  
  
• [Moissanite] has a slight green tint to it that becomes more noticeable with increasing gem sizes.

Notice how the use of the words “similar”, “slightly” and “somewhat” are deliberately chosen to obscure moissanite’s superior properties and capabilities, when it’s compared directly to diamond and other gemstones.

Moissanite is second in hardness to diamond on all hardness scales. The Mohs scale is perhaps the most useful of the hardness scales, since it measures a gemstone’s resistance to scratching. This is an issue of greater concern to jewelry buyers. The other scales measure the gem’s ability to withstand pressure. While this may be useful to the designers and manufacturers of fine jewelry, it is a non-issue to jewelry buyers unless they intend to use their rings and pendants as door stops and furniture mounts.

Moissanite birefringence or double refraction represents the ability of the jewel to disperse light. It is this very important characteristic that gives moissanite its superior fire that is 2½ times that of a diamond. Ironically diamonds are cut to maximize its fire. Diamonds that are cut to ideal specifications still don’t come close to yielding the fire of moissanite. Because moissanite possesses such overwhelming fire, it is cut to maximize its brilliance instead. It is the superior abundance of fire, luster, and brilliance above all other gemstones that makes Charles & Colvard Created Moissanite so highly desirable in fine jewelry.

Once again the slanderous “green with envy” claim is made in reference to the color of larger moissanite gem sizes. This smear is circulated to protect diamonds from moissanite’s high value proposition. Why buy a 3 caret “J” color “SI” diamond ring for $27,000.00, when you can buy a higher quality 3 caret moissanite ring of “H-I” color “VVS” clarity for as low as $1,800.00? (less than 1/10 the price of inferior graded diamonds).

Fortunately, moissanite’s advocates can take advantage of Wikipedia’s openness and correct the misinformation on their web site. In addition, advocates should submit or petition Wikipedia for a separate article entry for moissanite. Moissanite has a different origin, history, and composition than does the other form of SiC discovered by Mr. Acheson during a similar timeframe. This is an opportunity for advocates to assist others who are interested in learning the truth about moissanite, and to offer a definitive reference to this popular research tool.