CHARLES & COLVARD CREATED MOISSANITE™ LAUNCHES NEW AD CAMPAIGN

FOR IMMEDIATE RELEASE

New York, NY – October 25, 2007 - Charles & Colvard created Moissanite™ will launch an International advertising campaign designed to stimulate women to purchase dazzling and surprisingly affordable moissanite as a reward for the milestone moments in their lives.

Designed and created by Charles & Colvard, Ltd., the new campaign will be launched in the November issues of fashion and lifestyle magazines throughout the U.S. including People, InStyle, Us Weekly and O' The Oprah Magazine. It is also being translated into different languages and will be launched worldwide. The advertisements for the campaign vary by publication to feature select moissanite retailers such as JCPenney, Helzberg, Kohl's, Boscov's, Belks and Macy's as well as various new moissanite product styles including a dazzling moissanite buckle ring and a pair of three carat martini stud earrings. The campaign will run through December 2008 and will be supplemented with in-mall messaging and billboard advertising.

Charles & Colvard research provided key insight that led to the campaign's creative element that specifically targets female consumers. The research shows that moissanite's beauty and price point continues to appeal to the self-purchasing woman. In fact, 78 percent of moissanite buyers are women and 71 percent of moissanite purchases are self-gifts. The advertising campaign aims to excite and entice women to purchase moissanite throughout the year as a reward for the milestone moments in their lives. Additionally, the new copy focuses the reader on moissanite's superior visual properties of fire and brilliance.

"Charles & Colvard, Ltd. continues to focus on the self-purchasing woman when positioning moissanite in the marketplace because it continues to fill the marketing niche called 'reward for achievement' like no other jewel can" said Bob Thomas, CEO of Charles & Colvard, Ltd. "We believe this campaign will not only raise awareness for moissanite's exceptional fire and brilliance, but also re-introduce its overall affordability for women everywhere."

For more information about moissanite and Charles & Colvard Ltd., visit www.moissanite.com or contact Jenn Blum at 212.620.0356 ext. 208, or jblum@kinneyandkinsella.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.

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