CHARLES & COLVARD REPORTS 1ST QUARTER FISCAL YEAR 2023 FINANCIAL RESULTS.

RESEARCH TRIANGLE PARK, N.C: Charles & Colvard, Ltd. (Nasdaq: CTHR) (the "Company"), a globally recognized fine jewelry company specializing in lab created Made, Not Mined gemstones, reported financial results for the quarter ended September 30, 2022 ("First Quarter Fiscal 2023"), with net sales of $7.4 million and net loss of $0.03 per diluted share.

"While we remained focused on the execution of our key strategic initiatives as our fiscal year began, we faced some softness, we believe due to the current macroeconomic environment, as well as higher shipping costs and unforeseen weather-related supply chain constraints," said Don O'Connell, President and CEO of Charles & Colvard. "Despite these conditions, this quarter we still reported the fourth highest comparable trailing twelve months revenue of over $40 million, all while maintaining $16.6 million in cash and cash equivalents and increased in-stock rates in support of the upcoming holiday season, which has traditionally been our busiest period."

"As we position ourselves to become a leading direct-to-consumer destination for the conscious consumer, we continued to make strategic investments in our systems and infrastructure, as well as our product assortment, with exciting new collections, including Couture, Signature Men's and, in October, our Precious Colored Gemstone and Lab Grown Diamond Collections that we believe will position us to capture a greater share of wallet appealing to a broader audience in the quarters to come," continued O'Connell.

"In addition, we are extremely excited to have opened in October our first retail Signature Showroom location at our Company headquarters in the Research Triangle Park region of North Carolina, for those consumers who want to see our premium product in person. We believe that it remains imperative to stay top-of-mind for consumers who are seeking Made, Not Mined fine jewelry with a conscience, providing them with a superlative shopping experience," concluded Mr. O'Connell.

Recent Corporate Highlights

Announced grand opening of the Company's first retail Signature Showroom location in October;

Maintained recycled precious metals utilization of 99% for fiscal year 2022;

Executed a successful Labor Day Sale, Diamond Event and End of Summer Sale;

Launched new Couture, Signature Collection Men's Bands and, in October, our Created Color Collections in Caydia(r) lab grown diamond;

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