Russians and De Beers Cutting a Diamond Supply Deal, in an Advisory by Industrialinfo.com.

Business Editors

HOUSTON--(BUSINESS WIRE)--Oct. 25, 2001

The following is an advisory by Industrialinfo.com (Industrial Information Resources, Inc., Houston, Texas). Looking to assure themselves of a minimum of $500 million worth of rough Russian diamonds per annum, De Beers (Johannesburg, South Africa) is looking to sign a long term agreement on diamond marketing in December when the current agreement expires. The Russians favor a deal between De Beers and the Russian diamond company Alrosa thus being able to protect and control the adequate supply of rough diamonds to the home industry and enable it to work profitably.

Reports say that an agreement has been drafted and details are being ironed out between the Russians and the South Africans. Over the last two years, De Beers purchased around $1 billion of rough stones in Moscow and they need the supply to maintain the variety they offer clients. In the specialized world of diamond supply and demand negotiations, De Beers does not want the Russian cutters to have sole first rights over the best stones coming from the mine.

De Beers, the world's leading diamond producer was acquired earlier this year by DB Investments and is currently delisted from the JSE and LSE.

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