D.G. Jewelry Inc. Announces Management Promotions and Changes.

Business Editors

TORONTO--(BUSINESS WIRE)--June 1, 2001

D.G. Jewelry Inc. (Nasdaq:DGJL), D.G. Jewelry Inc., one of North America's leading designers, manufacturers and distributors of stone-set jewelry, is pleased to announce the promotion of Anca Periet to the position of Chief Financial Officer, of Ben Berkovits to the position of Executive Vice President, and the appointments of new staff, Michael P. Johns as Senior Vice President, Specialty Retail Services and Kenneth H. Saul, B.A., LL.B. as in-house General Counsel and corporate Secretary .

Jack Berkovits, President and CEO, commented: "We are pleased that our company has been able to attract and retain such talented individuals as these and are excited that they will be contributing their talents to the company's steady growth and competitive capabilities. Our management team has been strengthened by these changes, and we look forward eagerly to the new opportunities and challenges we are now better able to take on."

Anca Periet has been with DG for more than 14 years, and was appointed to the multiple positions of Vice President - Finance & Operations, Controller, Treasurer and Secretary in May, 2000. In addition to her financial responsibilities for the Company and its subsidiaries and affiliated companies, she is also responsible for identifying and investigating potential acquisitions. Ms. Periet has an M. Comm. from AES and a B. Sc. from York University 

Ben Berkovits, a business graduate of Touro College, New York, and York University, Toronto, initially joined D.G. Jewelry Inc. four years ago, bringing his extensive background in jewelry to DG Group's sales force. His immediate successes with DG Group's sales accounts led to his promotion to Vice President, Sales & Marketing. He has also undertaken more substantial on air promotions for the company on Value Vision TV in the US and on the Shopping Channel in Canada. The continued growth of the company, and of Mr. Berkovits's responsibilities and value to DG Group's activities, have certainly borne out the wisdom and deservedness of this further promotion to Executive Vice President-Sales & Marketing.

Michael P. Johns has an extensive background in retail management, beginning his career with the T. Eaton Co. in London, Ontario where, during his 8 year stint there, he first undertook retail management responsibilities. He then served for 27 years with W. G. Young Co., the latter portion of which he served as Senior Vice President-Marketing & Sales. Under his stewardship, W.G. Young Co. grew from a local entity of 6 stores in the western Ontario area, to a national chain throughout Canada with 37 stores, for which he was supervising a staff of 280 and exercising responsibility for the chain's acquisitions, promotions and sales of merchandise. He now brings to the DG Group his extensive knowledge and experience in all phases of the fine jewelry industry, including manufacturing and both wholesale and retail distribution.

Kenneth H. Saul, B.A., LL.B., a lawyer in private practice in Ontario for more than 27 years, has operated a general law practice with emphasis on civil litigation. He is a graduate of Osgoode Hall Law School, York University, as well as of the Canadian Securities Course, and of the Teacher of Adults certificate program at Centennial College, Toronto. He has taught internet and law programs at Devry Institute and at Centennial College. Mr. Saul provides hands-on legal guidance and counsel on an in-house, ongoing basis, to facilitate DG Group's ongoing development.

D.G. Jewelry Inc. 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 in the U.S., Canada and Europe. For more information, please visit us at www.dgjewelry.com.

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, other risk factors detailed in the company's most recent annual report and filings with the Securities and Exchange Commission.