PRESS RELEASE, New York, July 5, 2011 - Certified polished diamond prices maintained their strong uptrend in June as U.S. buyers fought to keep pace with Far East competitors. While some price resistance is apparent, the outlook for the second half of the year remains strong.

The RapNet® Diamond Index (RNDI)™ for 1.00ct. diamonds rose by 7.4% in June to 109.17, 0.50ct. increased by 13% and 3.00ct. grew by 8.2%. The RapNet Composite Index increased by 8.4% to 179.96 during the month.

During the first half of 2011, the RNDI for 1.00ct. stones increased 34.3%, with 0.50ct. up 37.2% and 3.00ct. up 31.6%. The RapNet Composite Index™ rose by 32.5% during the past six months.

Rough prices continue to rise and Rapaport estimates that average rough prices have increased by about 30% to 35% in the first half of the year.

According to the just released Rapaport Research Report titled “Half Way There,” diamond prices were buoyed by Far East demand as Chinese and Indian buyers set the tone at recent trade shows in Las Vegas and Hong Kong. At the same time, U.S. retailers continue to increase their inventories as they begin to prepare for the end of year selling season.

The first half of 2011 proved to be a positive period for the diamond industry, but dealers are concerned that the pace of growth might not be sustainable as rough prices may be overheating. Furthermore, the U.S. economy continues to be sluggish and may be entering a more difficult period as the Federal Reserve ended its quantitative easing program.

Additional information about the state of the diamond market is available in the just-released Rapaport Research Report - “Half Way There” at www.diamonds.net/report and has also been attached for convenience.