Charles & Colvard Launches Exciting, New 2003 Branding & Marketing Campaign for Moissanite; Consumer Research Identifies The Self Purchase, Pink Collar Achiever As Target.

Business Editors

MORRISVILLE, N.C.--(BUSINESS WIRE)--March 25, 2003

Charles & Colvard, Ltd. (Nasdaq: CTHR), the sole source of moissanite -- a jewel created for use in fine jewelry -- today proudly announced the launch of their new, 2003 branding and marketing campaign.

Charles & Colvard created Moissanite, a unique, near-colorless, lab-created jewel with superior fire and brilliance is the ideal reward for a woman celebrating her personal or professional achievements. Moissanite created by Charles & Colvard is quickly becoming one of Hollywood's favorite jewels for its unmatched beauty.

According to Barbara L. Mooty, Vice President, Brand Development & Industry Relations for Charles & Colvard, "The new Charles & Colvard campaign targets the 'pink collar achiever'--a self purchaser who is identified as an upwardly mobile, working woman. Influenced by style, she is fashion conscious, an independent decision maker, aspires for 'more' and takes pride in her achievements--both personal and professional."

Research indicates that today's "pink collar" women are a powerful force -- they're smart, savvy, value conscious and reward themselves for their accomplishments. Typically these rewards are clothing or accessories (shoes and handbags). "With most retail price points being less than $1,000, jewelry set with Charles & Colvard created Moissanite is the perfect reward for these women," adds Mooty.

The new Charles & Colvard marketing campaign, which is based on "reward yourself, you've earned it" positioning - rather than a gift of love, includes new consumer and trade advertising creative with an estimated brand building budget of over $2.5 million for 2003. With a new opening tagline of Splendor from the heavens...(TM), the copy goes on to describe moissanite as a sparkling fusion of art and science and closes with both the brand's reward yourself positioning and tagline of Moissanite...stellar beauty, superior brilliance(TM).

The new consumer image/lifestyle advertising campaign created by Kerwin Communications of West Caldwell, NJ for Charles & Colvard features a 3.10ct. round brilliant moissanite set in a 18kt. white gold ring and Slovenian born supermodel and girlfriend of Donald Trump, Melania Knauss, shot against a stunning backdrop of stars in the night sky. According to James Kerwin, CEO, Kerwin Communications, "Knauss was selected for her elegant, graceful, sophisticated look, which boasts global appeal and further reinforces the brand's identity." The Charles & Colvard print ads featuring Knauss will break in the April issue of National Jeweler with U.S. consumer placement in Elle, InStyle, Vogue and Vanity Fair following in May and June.

Prior to developing the new advertising campaigns for the brand, Charles & Colvard, and its product, moissanite, the company conducted extensive consumer research, including a nationwide poll of over 1,000 female consumer jewelry purchasers, as well as focus groups in key U.S., metropolitan markets including New York City, Dallas, TX and Chicago, IL. This new research helped Charles & Colvard to identify their primary target market, the 'Pink Collar Achiever', positioning its product moissanite, as a self-purchase symbolizing a woman's achievements and ensuring that their brand name accurately evoked the trust, prestige, and quality that the company and its product, moissanite, have come to stand for.

According to esteemed marketing and branding expert Walter J. O'Brien, a Charles & Colvard Board Member, former Vice Chair of J. Walter Thompson Worldwide and Past President of the National Advertising Review Council, "The 'Pink Collar Achiever' is the fastest growing consumer segment for the jewelry industry today. Charles & Colvard is now poised to speak her language -- offering her both style and substance."

According to Dennis Reed, Vice President of Sales for Charles & Colvard, "Manufacturers and jewelry designers are interested in diversifying their product collections with moissanite and offering retailers a new category of jewelry. Retailers are intrigued with the possibilities of selling jewelry to this powerful group of customers, generating higher profit margins, and adding a new source of revenue to their store. During these uncertain times, moissanite jewelry offers a bright future."

Reed added, "We at Charles & Colvard are interested in offering manufacturers an opportunity to participate in our new campaign. Charles & Colvard has an ongoing quest to align itself with 'best-in-class' manufacturers and designers."

Charles & Colvard, based in the Research Triangle Park area of North Carolina, became a public company in 1997. For more information, please access www.charlesandcolvard.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 reliance on Cree, Inc. as the sole supplier of the raw materials; the cost of developing distribution channels; difficulties obtaining silicon carbide crystals from the sole supplier in desired qualities, sizes and volumes; and other risks and uncertainties set forth in the Company's 10-K for the year ended December 31, 2001, 10-Q and other filings with the Securities and Exchange Commission.

Digital images of Charles & Colvard created Moissanite jewels and the Charles & Colvard created Moissanite Advertising images are available upon request.