D.G. Jewelry Sets January Sales Record Sales Up 47%, Best Results in 31 Year History.

Business Editors

TORONTO--(BUSINESS WIRE)--Feb. 2, 2000

D.G. Jewelry Inc. (Nasdaq:DGJL) announced its best-ever January sales results, recording sales of $US 2.5 million in January, 2000, an increase of 47% over January 1999 sales of $US 1.7 million.

Jack Berkovits, Chairman and CEO of D.G. Jewelry Inc., commented: &uot;We are gratified to see the incredible reception to our products in the marketplace. A significant portion of our sales are through television shopping channels. As a result, our record revenues are reflective not only of the product's selection by our retailer partners, but indeed, of instant validation by the ultimate consumer as well.&uot; Mr. Berkovits added, &uot;Also gratifying is the continuation of a recent trend wherein jewelry is being consumed more evenly throughout the year. This allows for better distribution of revenues and costs and creates less of a burden to perform in the all-too critical fourth quarter. It also allows investors and analysts to make better investment decisions, less dependent on a specific period of a cyclical business.

&uot;We are particularly pleased that we have been able to achieve this continued sales improvement, targeting our high-quality products to the value-conscious consumer, while continuing to maximize the interest of our shareholders by increasing and maintaining improved gross profit margins. With the continued improvement of our high-tech manufacturing process, and our buying power, together with the newly announced licensing agreement to manufacture Gloria Vanderbilt fine jewelry, we believe we will be able to build and improve on the current strategy.&uot;

D.G. Jewelry Inc. is primarily engaged in the design, merchandising and distribution of stone-set jewelry for major retailers including department stores, mass merchants, shopping networks, major 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.