Thesis Capital Submits Letter to Collectors Universe Board of Directors.

NEW YORK -- Thesis Capital Management, LLC, an institutional investor and beneficial shareholder of Collectors Universe (NASDAQ:CLCT), sent the following letter to the Company's Board of Directors.

Dear Collectors Universe Board Member:

Thesis Capital Management, LLC advises certain entities that collectively own 367,611 shares of common stock in Collectors Universe. As you may be aware, we have had ongoing discussions with Michael Haynes about the state of the company. While we support the Company's strategy for the gem business, we believe that Collectors Universe is grossly overcapitalized, especially in light of the company's track record in deploying shareholder capital.

In February of 2005 the company issued stock in a secondary offering at $17.50 per share with the understanding that the proceeds were going to be used for acquisitions. While we didn't make an investment in the company until the 4th quarter of 2005, well after the secondary offering and the subsequent 30% stock price decline, we were watching closely how the company undertook its responsibility to deploy the $52.5 million from the dilutive secondary. Even with Michael's help, we haven't been able to gain comfort with the idea that the company knows what to do with our (shareholders') excess capital.

To be clear, we understand the acquisitions thus far were part of your effort to build the GCAL business, a goal which we fully support. To quantify the actual dollars spent (without a commensurate return thus far):

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In spite of the robust acquisition strategy and generous dividend yield of approximately 3.5%, as of March 31st, 2007 the company still retained $43 million of shareholder capital on its balance sheet. I would remind the board that the total market capitalization of the company is only $114 million (as of the writing of this letter). Thus, the cash represents almost 40% of total capitalization.

Holding cash far in excess of the company's capital needs is an unacceptable allocation of capital. Clearly it is time for the company to pay a $4 special dividend to shareholders, who, at this point in time, are the more appropriate allocators of this capital.

The $4 dividend allows sufficient financial flexibility and cushion to accommodate ongoing working capital needs and unexpected surprises.

We understand that acquisition opportunities that may present themselves in the future, but until the diamond and colored gemstone business has been borne out to be both economic and scalable, we will not support the continued spending of our capital on unproven investments.

We remind this board of its duty to the business owners, whom you serve. The success or failure of policies made and decisions taken at the board level are reflected in the economic returns generated by the business which should be reflected in the company's stock price. It is ultimately a voting mechanism for shareholders to express how they feel about the job that the board and management are doing. The stock is essentially flat over the last 36 months and down 39% since its January 2005 high. We would encourage you to recognize that the inaudible whisper of disapproval is now becoming a very audible din and to act accordingly.

We look forward to speaking with you at your earliest convenience.

Stephen Roseman
Thesis Capital Management, LLC
60 East 42d St.
12th Floor
New York, NY 10165