Charles & Colvard Delays Purchase

Charles & Colvard said Wednesday it has signed agreement with Cree, Inc., its primary supplier, to suspend the commitment to purchase $710,000 of silicon carbide during the fourth quarter 2008.

The company, the sole source of moissanite, said it has adequate inventory on hand to meet sales demand. This purchase commitment will be added to the company’s yet to be established 2009 purchase commitment with Cree, Inc.

“We are pleased to have reached this agreement with Cree as we work to reduce current inventory levels in the distribution channel,” said Dennis Reed, Charles & Colvard president. “We have had a good long-term relationship with Cree and we look forward to it continuing into the future.”