Charles & Colvard Increases Moissanite Jewelry Availability With Expanded Distribution at Major Retailers.

MORRISVILLE, N.C. -- Charles & Colvard, Ltd. (NASDAQ:CTHR) - Due to outstanding consumer response, jewelry retailers in the U.S. and overseas are expanding the availability of fine jewelry featuring moissanite, the near-colorless jewel created by Charles & Colvard.

Bob Thomas, President and Chief Executive Officer, said, "I am happy to report that several major retail partners that implemented programs in 2004 are expanding the number of stores offering moissanite jewelry. The most significant development is the expansion of JCPenney stores offering moissanite jewelry from 462 to 703 stores. Additionally Boscov's has expanded moissanite distribution from 14 to 31 stores and Migerobe is expanding from 12 to all 38 of their leased jewelry departments within Saks Inc. department stores."

Thomas continued, "Also, we have seen an increase in activity throughout the world. We are adding Rhomberg Jewelers, a 23 store chain in Switzerland and 6 of the 40 Taiwan stores of the Carrefour retail chain. Wider distribution means more consumers across America and around the world will have the opportunity to experience the dazzling qualities of moissanite. This expansion is a testament to the continued hard work of our entire staff, with particular focus on the excellent execution last fall of the rollout of moissanite jewelry by JCPenney, the staff at our manufacturing customer Reeves Park and our team at Charles & Colvard."

Bob Thomas concluded, "As an additional note, the previously announced first quarter 2005 trunk show tests in six stores of a national 200-300 store fine jewelry chain, has been delayed. We anticipate an updated timeline from the retailer in the second quarter."

Charles & Colvard, based in the Research Triangle Park area of North Carolina, is the sole source of moissanite, a created jewel used in fine jewelry. Moissanite is near colorless, with more fire, brilliance and luster than a fine diamond, but retails for only a fraction of the cost. For more information, please access www.moissanite.com.

This press release may contain forward-looking statements. Such forward-looking statements are subject to a number of material risks, uncertainties and contingencies that could cause actual results to differ materially from those set forth in the forward-looking statements. Those risks and uncertainties include but are 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 and risks inherent in developing a material second source of supply through Norstel AB; the cost of developing distribution channels, dependence on a limited number of distributors such as K&G Creations, Reeves Park and Stuller Settings, Inc., our early stage of development, dependence on continued growth and consumer acceptance of the Company's products, and other risks and uncertainties set forth in the Company's 10-K for the year ended December 31, 2004 and other filings with the Securities and Exchange Commission.