D.G. Jewellery of Canada Ltd. Shareholders Approve Changing Name to D.G. Jewelry Ltd.; Significant Second Quarter Sales and Earnings Increases Projected.

TORONTO--(BUSINESS WIRE)--July 20, 1999--

Shareholders of D.G. Jewellery of Canada Ltd. (NASDAQ: DGJL), a designer, manufacturer, merchandiser and distributor of stone-set jewelry, meeting here today, voted overwhelmingly to change the corporate name from D.G. Jewellery of Canada Ltd. to D.G. Jewelry Ltd. to reflect the international scope of the company's business.

In his remarks to shareholders, Jack Berkovits, chairman, president and CEO, said, "Our second quarter results will be released within the next two weeks. We expect the second quarter sales and earnings to show significant growth over last year and we anticipate continued positive results going forward in 1999. Sales of our products on several home shopping networks, which we expect will account for 35 percent of total sales, continued to be strong in the second quarter. New products featuring gems, diamonds and cubic zirconia rings, necklaces and other jewelry continued to drive sales. We look for this trend to continue for the balance of 1999."

Shareholders approved an amended Stock Option Plan, reelected the company's four directors, and ratified the company's independent chartered accountants, Schwartz, Levitsky, Feldman, LLP.

Directors reelected for a one year term are: Samuel J. (Jack) Berkovits, chairman, president and chief executive officer; Theodore L. Bonsignore, general manager of Diamonair; Meyer Feiler, president of Carmen Incorporated; and Ronald Rutman, a partner with Zeifman & Company.

D. G. Jewellery of Canada Ltd. is primarily engaged in the design, merchandising and distribution of stone-set jewelry for department stores, mass merchants, catalog showrooms, television shopping networks and other high-volume retailers and other major discounters.

The Company maintains a broad base of customers concentrated in five major jewelry segments: Internet retailers, auctioneers and other web merchants; Department stores such as J.C. Penney and Saks Fifth Avenue; Specialty markets such as QVC Inc., Home Shopping Network, ValueVision International, Shop at Home, QVC England, QVC Germany and The Shopping Channel (Canada); Jewelry chain stores such as Zales, Gordons, and Friedmans; Mass merchandisers such as Wal-Mart and Zellers.

Except for the historical information contained herein the matters discussed in this release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to, risks in product demand, the impact of competitive products and pricing, changing economic conditions, both here and abroad, release and sales of new products, and other risk factors detailed in the Company's most recent annual report and filings with the Securities and Exchange Commission.