Press Release

Monday, October 18, 2004

OPIC & U.S. Company Partner to Improve Diamond Production and Sales in Emerging Markets

WASHINGTON, D.C - The Overseas Private Investment Corporation (OPIC) and one of the world’s leading diamond cutting company, Lazare Kaplan International Inc. (LKI), have entered into a partnership by which OPIC will support LKI efforts to improve diamond production and sales in emerging markets throughout the world, particularly in Africa.

OPIC President and CEO Dr. Peter Watson announced that OPIC would provide a global framework credit facility to support investments by LKI in enterprises engaged in diamond mining or diamond cutting and polishing activities in Angola, Botswana, Namibia, or the Russian Federation.

Using its expertise, LKI will work to improve selected companies’ factory management and retail sales, and provide polished diamond branding and direct cooperation with international jewelry houses. LKI will target mining operations which lack the support of an independent marketing organization.

“Diamond production is a leading industry in many emerging markets, generating millions in revenue and vital ancillary economic activity. OPIC’s partnership with LKI will help countries upgrade their diamond production and marketing, resulting in a powerful transfer of technology and entrepreneurial capacity,” said Dr. Watson.

LKI Chairman Maurice Tempelsman said, “The United States consumes approximately 55 percent of all diamonds produced in the world. The partnership with OPIC, in addition to generating growth in diamond producing countries, will also benefit U.S. consumers by providing access to new and expanded sources of supply.”

Lazare Kaplan International is the only publicly traded diamond cutting and polishing company in the United States. LKI has manufacturing operations in Puerto Rico, Russia, Namibia and Belgium; and has extensive marketing and retail networks in the United States, Japan, Pacific Rim and Europe. As a founding member of the United Nations Global Compact, LKI actively supports and complies with the U.S. and international laws and regulations which prohibit the trade in conflict diamonds, prevent money laundering and combat the financing of terrorism.