Charles & Colvard, Ltd. Announces Management Change

MORRISVILLE, N.C.--(Business Wire)--
Charles & Colvard, Ltd. (NASDAQ: CTHR) announced today that due to mounting
evidence that recovery of the depressed worldwide jewelry markets will be later
and slower than previously expected, Charles & Colvard, Ltd. and Bird Capital
Group, Inc. are in agreement that Charles & Colvard`s current business model
must be modified to work within the current economic environment as a low cost
operation and have mutually agreed on July 2, 2009 to terminate the Management
Services Agreement between the parties. Concurrently, Richard Bird resigned as a
director and officer of Charles & Colvard effective July 2, 2009. The Board has
initiated the search, led by Dr. Charles D. Lein, for a new chief executive
officer.

Mr. Bird has agreed to consult for Charles & Colvard until August 31, 2009, to
assist in the transition to a new management team. In this transition period,
Charles & Colvard employees will report to Mr. Timothy Krist, chief financial
officer. During this period both Mr. Bird and Mr. Krist will report to the Board
of Directors through George Cattermole, Chairman of the Board.

Mr. Cattermole said: "We want to thank Bird Capital Group for its contributions.
We believe that the combination of changes we are making will position the
Company not only to move forward during these difficult times, but also to
emerge as a much stronger, more successful company."

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

Safe Harbor Statement

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 management¹s 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 the Company¹s 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,
continued listing of our common stock on the NASDAQ Global Select Market, the
impact of significant changes in our management on our ability to execute our
business strategy in the near term and the impact of adverse resolution of legal
proceedings on our operating results or financial condition. These and other
risks and uncertainties, many of which are addressed in more detail in our most
recent Annual Report on Form 10-K filed with the Securities and Exchange
Commission, could cause our actual results and developments to be materially
different from those expressed or implied by any of these forward-looking
statements. 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.

Charles & Colvard, Ltd.
Timothy L. Krist, CFO
919-468-0399, ext. 295
tkrist@charlesandcolvard.com
or
Investor Relations
Deborah K. Pawlowski
Investor Relations
716-843-3908
dpawlowski@keiadvisors.com

Copyright Business Wire 2009