Charles & Colvard Announces New Exclusive Innovation That Produces a Whiter & Brighter Moissanite Gemstone Direct from the

  Charles & Colvard Announces New Exclusive Innovation That Produces a Whiter
  & Brighter Moissanite Gemstone Direct from the Source…

Business Wire

MORRISVILLE, N.C. -- April 18, 2013

Charles & Colvard, Ltd. (NASDAQ Global Select Market: CTHR), the sole
manufacturer of created moissanite gemstones, The Most Brilliant Jewel in the
World^®, is excited to announce a new exclusive innovation in moissanite
gemstone production. Cree, Inc. has developed a technological advancement in
the organic growth of silicon carbide crystals that results in such improved
natural whiteness that no treatment, enhancement, or other whitening process
is needed in order for Charles & Colvard to produce a dazzling gemstone that
will be sold under its trademark, FOREVER BRILLIANT^®. As a result of this
development, Charles & Colvard and Serenity Technologies, Inc. have agreed to
terminate their agreement pursuant to which Serenity had previously provided
Charles & Colvard with a whitening process for its gemstones. Charles &
Colvard expects to continue to use Serenity, on a non-exclusive basis, as a
provider of fancy color treatment for some of its gemstones.

“Innovation remains a driving force for Charles & Colvard’s long-term
strategy. We continue to introduce new, exciting, and innovative products like
our improved premier brand of Charles & Colvard Created Moissanite^®, FOREVER
BRILLIANT^®, gemstones with optical properties that are remarkably whiter and
brighter than ever before,” stated Randy N. McCullough, Chief Executive
Officer of Charles & Colvard, Ltd. “The results are amazing and I’m sure
consumers will be astonished at this recent improvement of our FOREVER
BRILLIANT^® moissanite gemstone in 2013. The refraction and scintillation are
off the charts, providing a brilliance that surpasses anything we’ve seen
before in our moissanite gemstones.”

Charles & Colvard Created Moissanite^®

Made of silicon carbide (SiC) and exhibiting overall properties that are close
to that of diamonds but with nearly 2.5 times the fire of diamond,
moissanite’s superior brilliance, luster, and optical properties rival even
the highest quality diamonds. Created moissanite gemstones possess the
quality, value, and resilience of fine diamonds while offering much more
affordable price points. Charles & Colvard also markets its exclusive
trademarked brand of whiter moissanite gemstones – FOREVER BRILLIANT^®.

Limited Lifetime Warranty and Certificate of Authenticity

Charles & Colvard is committed to ensuring the quality and longevity of
FOREVER BRILLIANT^® gems. Each gemstone is accompanied by a Charles & Colvard
certification and laser inscribed on the girdle for easy identification.
FOREVER BRILLIANT^® moissanite gemstones carry the same Limited Lifetime
Warranty as all other Charles & Colvard Created Moissanite^® gemstones for
maintaining their optical property of brilliance. An enhancement or other
treatment by any party other than Charles & Colvard to a Charles & Colvard ^
Created Moissanite^® gemstone voids the warranty.

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 ability to
fulfill orders on a timely basis; the financial condition of our major
customers; dependence on Cree, Inc. as the sole current supplier of the raw
material; our current wholesale customers’ potential perception of us as a
competitor in the finished jewelry business; intense competition in the
worldwide jewelry industry; general economic and market conditions, including
the current economic environment; 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; possible adverse effects of governmental regulation and oversight;
and the failure to evaluate and integrate strategic opportunities, 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, 2012 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:

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