Charles & Colvard Appoints Steven M. Larkin as Chief Operating Officer

Charles & Colvard, Ltd. (NASDAQ Global Select Market: CTHR), the sole manufacturer of created moissanite gemstones, The Most Brilliant Jewel in the World^®, announced today the appointment of Steven M. Larkin as its Chief Operating Officer effective May 6, 2013. Mr. Larkin has served on our Board of Directors since February 2011 and has resigned that position effective May 6, 2013. Mr. Larkin’s responsibilities in his new role will include the development of long-term operating strategies designed to enhance shareholder value by growing top-line revenue and improving net profit and cash flow.

Mr. Larkin's career spans over 30 years of diverse, progressive merchandising and marketing responsibilities in the retail, e-commerce, and fine jewelry industries. Since 2010, Mr. Larkin was most recently Senior Vice President, Direct, of Golfsmith International Holdings, Inc., a specialty retailer of golf and tennis equipment, apparel and accessories.

Previously, Mr. Larkin served as Executive Vice President, Chief Marketing and E-commerce Officer at Zale Corporation. Prior to Zale Corporation, Mr. Larkin served in a variety of marketing, merchandising, and e-commerce-related executive positions with various companies in the retail industry, including ShopNBC, The Fingerhut Corporation, and Federated Department Stores/Macy’s, Inc. Mr. Larkin is a graduate of The School of Management at Boston University.

Randy McCullough, Chief Executive Officer of Charles & Colvard, Ltd., commented, "We are extremely pleased to add Steve to our executive management team, and we believe his jewelry merchandising and marketing backgrounds will be a contributing factor to Charles & Colvard's future success. During his service on our Board of Directors, he has demonstrated the ability and the right cross-section of talent to help expand awareness and educate consumers of the great properties and value of our incredible gemstone via traditional and non-traditional channels.”

“I’m impressed with consumer acceptance and satisfaction with our products, and I’m confident via increased awareness and education campaigns that we can significantly grow market share in the large worldwide gemstone sector,” stated Mr. Larkin. “Opportunities exist in traditional and progressive digital channels. Social, mobile, and international media may all be utilized in expanding awareness and growing the business. As a prior Board member, I have been impressed and excited about the future that Randy and the team created thus far. I look forward to contributing in further growing the business and shareholder value,” concluded Larkin.

About Charles & Colvard, Ltd.

Charles & Colvard, Ltd., based in the Research Triangle Park area of North Carolina, 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. is headquartered in Morrisville, North Carolina, and its common stock is listed on the NASDAQ Global Select Market under the symbol “CTHR.” For more information, please visit www.charlesandcolvard.com.

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.