NATIONAL ONLINE MOISSANITE CONTEST FOR WOMEN KICKS OFF WITH THOUSANDS OF ENTRIES
Now Until January 16, 2008 Women are Encouraged to Share their 'Milestone Moments' and Win Big

FOR IMMEDIATE RELEASE

(NEW YORK) December 6, 2007 - Thousands of women are logging on and opening up to share their milestone memories in a National contest called "Milestone Moments" sponsored by Charles & Colvard, Ltd. and JCPenney. The contest, which kicked off in October, was advertised in O, The Oprah Magazine and has received over 8,000 entries to date, demonstrating that women everywhere are not shy when it comes to celebrating the significant and inspirational events that shape their lives.

At the completion of the contest one winner will be selected and her story will be revealed nationally, she will also receive a one-of-a-kind platinum pendant set with an approximate 5ct. round, brilliant-cut moissanite jewel surrounded and accented with micro-set diamonds valued at $10,500. The deadline to enter is January 16, 2008, and women are encouraged to log onto www.Omagazine.info/moissanite to continue sharing their stories and possibly win big.

"This contest is a way for us to honor extraordinary women who live brilliantly, celebrating their intricacies of spirit, individuality and milestone achievements," said Bob Thomas, chief executive officer of Charles & Colvard, Ltd. "We hope this contest will help to create another unforgettable milestone moment in the winner's life."

"Offering outstanding beauty, quality and durability, moissanite is fast becoming the must-have piece in today's fine jewelry industry," said Beryl Raff, Executive Vice President, General Merchandise Manager for JCPenney. "It is an ideal gift or purchase for celebrating the key milestone achievements in a woman's life."

For more information about the Milestone Moments Contest as seen in O, The Oprah Magazine log onto www.Omagazine.info/moissanite.

About Charles & Colvard, Ltd.
Charles & Colvard, Ltd. (Nasdaq: CTHR), based in the Research Triangle Park area of North Carolina, is the global sole source of lab-created moissanite, a unique, near-colorless jewel that is distinct from other gemstones and jewels based on its exceptional fire, brilliance, luster, durability and rarity. Currently used in fine jewelry, Charles & Colvard created Moissanite(TM) is primarily marketed to the self-purchasing woman as the perfect reward or indulgence for a woman celebrating her achievements, whether personal or professional, big or small. For more information, please access www.charlesandcolvard.com.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements expressing expectations regarding our future and projections relating to products, sales, revenues and earnings are typical of such statements and are made under the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions and are not historical facts and typically are identified by use of terms such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue" and similar words, although some forward-looking statements are expressed differently.

All forward-looking statements are subject to the risks and uncertainties inherent in predicting the future. You should be aware that although the forward-looking statements included herein represent management's current judgment and expectations, our actual results may differ materially from those projected, stated or implied in these forward-looking statements as a result of many factors, including, but not limited to the Company's ability to manage growth effectively, dependence on Cree, Inc. as the current supplier of the substantial majority of the raw material, ability to develop a material second source of supply, dependence on a limited number of jewelry manufacturing customers, dependence on continued growth and consumer acceptance of the Company's products, in addition to the other risks and uncertainties described in more detail in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. We undertake no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur except as required by the federal securities laws, and you are urged to review and consider disclosures that we make in the reports that we file with the Securities and Exchange Commission that discuss other factors relevant to our business.

About JCPenney
JCPenney is one of America's leading retailers, operating 1,064 department stores throughout the United States and Puerto Rico, as well as one of the largest apparel and home furnishing sites on the Internet, www.jcp.com, and the nation's largest general merchandise catalog business. Through these integrated channels, JCPenney offers a wide array of national, private and exclusive brands, which reflect the Company's commitment to providing customers with style and quality at a smart price. Traded as "JCP" on the New York Stock Exchange, the Company posted revenue of $19.9 billion in 2006 and is executing its strategic plan to be the growth leader in the retail industry. Key to this strategy is JCPenney's "Every Day Matters" brand positioning, intended to generate deeper, more emotionally driven relationships with customers by fully engaging the Company's 155,000 associates to offer encouragement, provide ideas and inspire customers every time they shop with JCPenney.

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