DGSE Companies, Inc. Announces Record Revenues of $62,966,805 for Fiscal 2007; Net Income for the Fiscal Year Increased 21 Percent to $755,019 or $.10 Per Share.

DALLAS -- DGSE Companies, Inc. (AMEX:DGC), which wholesales, retails and auctions fine watches, jewelry, diamonds, precious metal and rare coin products via traditional and Internet channels, today announced operating results for the year ended December 31, 2007.

Earnings

* Basic earnings per share for Fiscal 2007 were $.10 on weighted average shares outstanding of 7,507,579 versus basic per share of $.12 per share in fiscal 2006 on weighted average shares outstanding of 4,913,290. Fully diluted earnings per share for fiscal 2007 were $.09 versus $.12 per share in 2006. Net Income increased 21 percent to $755,019 from $611,245 in fiscal 2006.

* Net Income was $10,367 in the Fourth Quarter of 2007 versus $84,000 in the Fourth Quarter of 2006. Fourth Quarter 2007 basic and diluted earnings were $.00 versus $.02 per share in the Fourth Quarter of 2006.

* Both the Fourth Quarter and Fiscal Year Net Income include all of the start up expenses related to new initiatives including Superior Estate Buyers, Superior Precious Metals, Americagoldandsilverexchange.com.

Revenues

* Total Revenues for Fiscal 2007 were $62,966,805 versus $43,856,745. This represents a 44 percent increase over Fiscal 2006.

* Total Revenues for the Fourth Quarter of 2007 were $23,294,000 versus $12,207,000.

Performance Metrics & Liquidity

* EBITDA (earnings before interest, taxes, depreciation and amortization) was 2,113,488 or 2007 versus $1,534,055 in 2006. This represents a 38 percent increase.

* Shareholders equity at year-end 2007 was $20,277,581 versus $6,677,360 in fiscal 2006 or $2.87 per basic share and $2.47 per diluted share. This represents an increase of $ 13,571,404 over 2006.

"Fiscal 2007 was a year of important developments for DGSE," noted William H. Oyster, President and Chief Operating Officer of DGSE Companies, Inc. Mr. Oyster continued, "We invested significant capital in all of our businesses and concluded the acquisition one of the largest rare coin businesses in the United States. With the closing of the acquisition of Superior Galleries, Inc. in the Second Quarter of 2007, DGSE has materially expanded its platform. In the fourth quarter of 2007 we invested in and launched new initiatives that already proving to be important to the core activities of the business. Our financial metrics continue to improve with shareholders equity growing, revenues and earnings expanding and our revenue sources continuing to diversify. We are confident that our shareholders may look forward to the continuation of these trends."

DGSE Companies, Inc. wholesales retails and auctions jewelry, diamonds, fine watches, and precious metal bullion and rare coins products to domestic and international customers through its Dallas Gold and Silver Exchange, Charleston Gold and Diamond Exchange, Superior Galleries and National Jewelry Exchange subsidiaries and well as through the Internet. DGSE also owns Fairchild International, Inc., one of the largest vintage watch wholesalers in the country. In addition to its retail facilities in Dallas and Euless, Texas, Charleston, South Carolina and Beverly Hills, California, the Company operates live Internet auctions which can be accessed at www.dgse.com. Through Superior Galleries' at www.sgbh.com, the Company provides a host of services to collectors and investors in rare coins and precious metals including internet auctions, information about its live auctions and a complete inventory of rare coins and related products. Real-time price quotations and real-time order execution in precious metals are available at www.USBullionExchange.com and www.SuperiorPreciousMetals.com. Wholesale customers can access our full vintage watch inventory through the restricted site at www.FairchildWatches.com. DGSE also purchases precious metals, rare coins, watches, diamonds and jewelry through www.Americangoldandsilverexchange.com and over 900 supporting websites and through www.SuperiorEstateBuyers.com. The Company also makes collateralized consumer loans at two National Pawn locations in Dallas, Texas.

The Company is headquartered in Dallas, Texas and its common stock trades on The American Stock Exchange under the symbol "DGC."

This press release includes statements which may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. In addition to the results presented in accordance with Generally Accepted Accounting Principles throughout this press release, DGSE has presented non-GAAP financial measures as EBITDA. The Company believes that these non-GAAP measures, viewed in addition to and not in lieu of the Company's reported GAAP results, provide useful information to investors because they are an integral part of the Company's internal evaluation of operating performance. In addition, they are measures that DGSE uses to evaluate management's effectiveness. DGSE's non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies.

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