Charles & Colvard Appoints Thomas G. Pautz as Vice President, Sales and Marketing

Mr. Pautz has 25 years' sales and marketing experience in the jewelry industry where he has worked with manufacturers and large retailers. Most recently, Mr. Pautz was employed as Vice President -- U.S. Sales by KTL, a Hong Kong-based jewelry manufacturer with operations in China. During his six-year tenure with the firm, Mr. Pautz grew sales in the United States ten-fold. Prior to this, Mr. Pautz was Vice President, Sales and Marketing with a U.S.-based jewelry manufacturer where he tripled sales in less than three years. Mr. Pautz earned a Bachelor of Science Degree from the University of Minnesota.

George R. Cattermole, Chairman of the Board and Interim Chief Executive Officer of Charles & Colvard commented, "Charles & Colvard is in a pivotal period as we solidify our sales and marketing strategies. We believe Tom's past successes as well as his extensive industry knowledge will contribute to the successful execution of our strategic direction going forward. We are very excited to have someone of Tom's caliber join us in the next phase of our evolution."

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. Charles & Colvard Created Moissanite is currently used in fine jewelry sold primarily through domestic and international retailers. For more information, please access www.moissanite.com or www.charlesandcolvard.com.

Charles & Colvard and Charles & Colvard Created Moissanite are registered trademarks of Charles & Colvard, Ltd.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. 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," "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 recent downturn in the worldwide economy and its ongoing impact on our business and the business of our customers and suppliers, any continued trends in the general economy that would adversely affect consumer spending, a further decline in our sales, dependence on consumer acceptance of our products, dependence on Cree, Inc. as the current supplier of most of the raw material, ability to develop a material second source of supply, dependence on a limited number of customers, risks of conducting operations in foreign countries, dependence on third parties for the sales and marketing of our products to end consumers, continued listing of our common stock on the NASDAQ Global Select Market, and the impact of significant changes in our management on our ability to execute our business strategy in the near-term, in addition to the other risks and uncertainties described in more detail in our filings with the Securities and Exchange Commission, or the SEC, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and subsequent reports filed with the SEC. 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 SEC, that discuss other factors relevant to our business.

SOURCE: Charles & Colvard, Ltd.

Charles & Colvard, Ltd. 
Timothy Krist, 919-468-0399,ext. 295 
Chief Financial Officer 
tkrist@charlesandcolvard.com 
or 
Investor Relations: 
Fran Barsky, 919-244-7357 
fbarsky@charlesandcolvard.com