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Charles & Colvard Announces Renewed Purchase Commitment with Cree

  Charles & Colvard Announces Renewed Purchase Commitment with Cree

Business Wire

MORRISVILLE, N.C. -- February 14, 2013

Charles & Colvard, Ltd. (NASDAQ Global Select Market: CTHR), the sole
manufacturer of created moissanite gemstones, The Most Brilliant Jewel in the
World^®, today announced that it has entered into an amended Letter Agreement
with Cree, Inc. that provides for the production of new silicon carbide (SiC)
raw material to be delivered quarterly until July 2015. The supply and
purchase of SiC material under this amended Letter Agreement will be governed
in all respects by the terms and conditions of the parties’ Amended and
Restated Exclusive Supply Agreement (the “Supply Agreement”) dated June 6,
1997. Under the amended Letter Agreement, exclusivity shall remain in effect
as provided in the Supply Agreement.

“Charles & Colvard’s growth in sales, expansion into consumer-direct
initiatives and accelerated demand for a number of our most popular moissanite
gemstones has resulted in the need to acquire new moissanite raw material,”
commented Randy N. McCullough, Chief Executive Officer of Charles & Colvard,
Ltd. “The production of new material also provides the opportunity for
continued enhancements in our manufacturing processes and for our team to work
closely with a designated team at Cree in a collaborative effort.

“In addition, thanks to our sales team’s success, we now have the opportunity
to further explore the gemstone enhancement process for our products, Charles
& Colvard Created Moissanite^® and Forever Brilliant^®.”

About Charles & Colvard, Ltd.

Charles & Colvard, Ltd., based in the Research Triangle Park area of North
Carolina, is the global sole source of moissanite, a unique, near-colorless
created gemstone that is distinct from other gemstones and jewels based on its
exceptional fire, brilliance, luster, durability, and rarity. Charles &
Colvard Created Moissanite^® and Forever Brilliant^® are currently
incorporated into fine jewelry sold through domestic and international
retailers and other sales channels. Charles & Colvard, Ltd. is headquartered
in Morrisville, North Carolina, and its common stock is listed on the NASDAQ
Global Select Market under the symbol “CTHR.” For more information, please
visit www.charlesandcolvard.com.

This press release contains forward-looking statements within the meaning of
Section27A of the Securities Act of 1933, as amended, and Section21E 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,”
“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, our dependence on consumer
acceptance and growth of sales of our products resulting from our strategic
initiatives; dependence on a limited number of customers; our current
wholesale customers’ potential perception of us as a competitor in the
finished jewelry business; general economic and market conditions, including
the current economic environment; dependence on Cree, Inc. as the current
supplier of the raw material; intense competition in the worldwide jewelry
industry; the financial condition of our major customers; risks of conducting
business in foreign countries; the pricing of precious metals, which is beyond
our control; the potential impact of seasonality on our business; our ability
to protect our intellectual property; the risk of a failure of our information
technology infrastructure to protect confidential information and prevent
security breaches; and possible adverse effects of governmental regulation and
oversight, in addition to the other risks and uncertainties described in our
filings with the Securities and Exchange Commission, or the SEC, including our
Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and
subsequent reports filed with the SEC. 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 SEC that discuss other factors relevant to our business.

Contact:

Company Contact:
Timothy Krist, Chief Financial Officer
919-468-0399, ext. 295
tkrist@charlesandcolvard.com
or
Investor Relations:
Taglich Brothers, Inc.
Christopher Schreiber. Investor Relations Counsel
800-383-8464
cs@taglichbrothers.com