Charles & Colvard’s Lulu Avenue® Signs License Agreement with Frances Gadbois to Be Exclusive Designer

Charles & Colvard, Ltd.’s (NASDAQ:CTHR) direct sales division, Lulu Avenue®, has signed a new exclusive, design and license agreement with Frances Gadbois, effective immediately. Its prior license agreement with JudeFrances Jewelry was terminated with mutual consent of both parties.

The agreement with Frances Gadbois, who designed the fashion and moissanite jewelry collections for Lulu Avenue® under its prior agreement with JudeFrances Jewelry, calls for Ms. Gadbois to continue to design fashion and moissanite jewelry for Lulu Avenue®. As the designer of the Lulu Avenue® collection, Ms. Gadbois has devoted significant amounts of her time to the collection, creating classic, elegant, and trend-setting designs.

Michelle Jones, President of Lulu Avenue®, said, “We are extremely pleased with Frances Gadbois’ spectacular designs, and look forward to our continued partnership with her. Having secured Frances’ availability to create exclusive designs, we believe, enables even greater collaboration and creativity as we grow our direct sales business.”

Frances Gadbois said, “Working with Lulu Avenue® over the past year, seeing the tremendous success of our stellar Style Advisors, has inspired me to continue designing creative jewelry that is stunning and on-trend. I look forward to devoting my time to Lulu Avenue® and working closely with the team.”

Randy N. McCullough, Chief Executive Officer of Charles & Colvard, said, “We believe that this agreement with Frances will propel Lulu Avenue® to the next stage of its growth, and strengthen the appeal of our jewelry offerings to a wide variety of customers through our Style Advisors.”

About Lulu Avenue®

Lulu Avenue® is an innovative social selling and e-commerce jewelry brand sold primarily through Lulu Avenue's® growing network of Independent Style Advisors who earn an income by selling the exclusive Lulu Avenue® branded jewelry online and through boutique-style Trunk Shows. Lulu Avenue® is the world’s only direct sales Company featuring Moissanite – The World’s Most Brilliant Gem®, and exclusive jewelry designs by Frances Gadbois. Lulu Avenue® offers a selection of fine and fashion jewelry for today’s modern woman that appreciates classic, elegant and on-trend designs. Through the power of direct sales, Lulu Avenue® is bringing style, financial independence and empowerment to women across the country. Lulu Avenue® is available through your local Style Advisor or online at www.luluavenue.com.

About Charles & Colvard, Ltd.

Charles & Colvard, Ltd., is the global sole source of moissanite, a unique, near-colorless created gemstone that is distinct from other gemstones and jewels based on its exceptional fire, brilliance, luster, durability, and rarity. Charles & Colvard Created Moissanite® and Forever Brilliant® are currently incorporated into fine jewelry sold through domestic and international retailers and other sales channels. Charles & Colvard, Ltd.’s common stock is listed on the NASDAQ Global Select Market under the symbol “CTHR.” For more information, please visit www.charlesandcolvard.com.

Forward-Looking 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,” “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, our dependence on consumer acceptance and growth of sales of our products resulting from our strategic initiatives; dependence on a limited number of customers; our ability to fulfill orders on a timely basis; the financial condition of our major customers; dependence on Cree, Inc. as the sole current supplier of the raw material; our current wholesale customers’ potential perception of us as a competitor in the finished jewelry business; intense competition in the worldwide jewelry industry; general economic and market conditions, including the current economic environment; risks of conducting business in foreign countries; the pricing of precious metals, which is beyond our control; the potential impact of seasonality on our business; our ability to protect our intellectual property; the risk of a failure of our information technology infrastructure to protect confidential information and prevent security breaches; possible adverse effects of governmental regulation and oversight; and the failure to evaluate and integrate strategic opportunities, in addition to the other risks and uncertainties described 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, 2012 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.