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.