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Lulu Avenue And JudeFrances Jewelry Enter Into Exclusive Design Agreement

Lulu Avenue TM, a brand of Charles & Colvard Direct, LLC, the wholly owned home party direct sales subsidiary of Charles & Colvard, Ltd. (NASDAQ Global Select Market: CTHR), today announced it has entered into an exclusive services and licensing agreement with JudeFrances Jewelry, Inc. Under the agreement, JudeFrances will custom design fashion and moissanite jewelry for Lulu Avenue. Known for their classic, sexy, elegant yet affordable designs, JudeFrances’ fashion jewelry and moissanite designs for Lulu Avenue are targeted to add a unique, trendsetting, and style-defining element differing from any other designs on the market today.

The collection will include fashion and moissanite jewelry designed by Frances Gadbois and will be produced in the same factories that make the JudeFrances Jewelry Collection. “I wanted to create something that all women could wear, while still delivering the finest quality at affordable prices,” commented Ms. Gadbois. “This classic, sexy, elegant, and affordable collection will be composed of a myriad of earring charms that can be worn on several different hoops; on-trend bangles and stackable rings for day into evening looks; and interchangeable pendants and chain necklaces that I believe will make the collection for Lulu Avenue the most versatile fashion jewelry collection around.”

“The agreement supports our commitment to women’s business ownership through direct selling,” commented Jude Steele, co-founder of JudeFrances. “With our JudeFrances business model we created a repeat customer business by offering different earring charms for different occasions, and we want to bring this same concept to the fashion jewelry world.”

The agreement leverages Frances Gadbois and Jude Steele’s exuberant personalities and fashion world access, further enhancing Lulu Avenue Style Advisors’ fashion credibility, opportunity, and community.

“This strategic agreement leverages both the design strengths of JudeFrances with the direct sales expertise of Lulu Avenue in the home party jewelry sales business,” commented Randy N. McCullough, Chief Executive Officer of Charles & Colvard, Ltd. “It signifies our commitment to the direct selling channel and we believe it positions the company for sustained growth by expanding business-to-consumer opportunities for moissanite gemstones.”

“Our Style Advisors will have the exclusive, trendy, and fun merchandise that is indicative of the best opportunities available in direct sales,” stated Kevin S. Raulston, General Manager of Charles & Colvard Direct, LLC. “Now our Style Advisors have affordable designer products available nowhere else upon which to build their businesses.”

Charles & Colvard, Ltd. will file a Current Report on Form 8-K with the Securities and Exchange Commission describing the material terms of the transaction.

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