NEW YEAR'S REVOLUTION MOISSANITE PUTS POSITIVE SPIN ON NEW YEAR'S RESOLUTIONS

FOR IMMEDIATE RELEASE

Media Contact: Renae Placinski, North Shore Public Relations, (847) 945-4505 or renae@northshorepr.com

December 10, 2007 – With the new year comes resolutions-and from losing weight to quitting smoking, the term "resolution" has a negative connotation these days. Instead of focusing on flaws, there's a way to focus on the positive this time around. What better way to begin 2008 than to recognize all the milestones achieved over the past year? This season, Moissanite created by Charles & Colvard™ is that luxury accessory women are seeking as a "New Year's reward" for all they accomplish. Plus, what better way to spend holiday gifts of cash than on the extraordinary sparkle of moissanite!

Charles & Colvard, the exclusive manufacturer of moissanite jewels, has reported that moissanite is quickly becoming the "jewel of choice" that represents women's achievements. Not only are women asking for moissanite as a gift, they are now buying moissanite jewelry for themselves, just as they would a designer pair of shoes or luxury handbag-a "self-purchasing" first in the jewelry industry.

Born from the discovery of particles in a meteor crater, moissanite holds more intense fire, brilliance and luster than any other jewel-including diamond. A near-colorless jewel with 2.4 times the fire of diamond, moissanite exemplifies all the characteristics women seek in a luxury product-quality, beauty and durability. Plus, it has one "surprise" characteristic-it's more affordable than popular gemstones and sells for a fraction of diamond's price.

While moissanite has a broad appeal to men and women alike, market research indicates that 78 percent of moissanite buyers are women. With 71 percent of women purchasing the jewel for themselves, showing that a piece of moissanite jewelry is what women turn to when it's time to find something simply stunning.

"Women love the big, bold look of moissanite jewelry; they appreciate it as a gift and buy it as a reward for themselves," says Charles & Colvard President and Chief Marketing Officer Dennis M. Reed. "Market research shows us that we're succeeding in positioning moissanite as a luxury accessory-we're filling a gap in the luxury product industry."

Moissanite's largest customer base consists of independent women who are decision-makers with disposable income, appreciate value and enjoy treating themselves. The demographic of the 35+ year-old, educated and savvy woman who finds plenty of reasons to treat herself with luxury products is gaining increased influence in today's marketplace. Research shows that "self-purchases" usually cost between $500 and $1,000, and typically include designer handbags, travel, shoes or a trip to a day spa-but not fine jewelry.

"There is nothing in that price range in a jewelry store that speaks to this group of women and captures their self-worth," says Charles & Colvard CEO Robert Thomas. "The designer quality and styles of moissanite jewelry are changing that."

To learn more about the incredible sparkle and value of Charles & Colvard created Moissanite, visit www.moissanite.com.

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™ 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.