De Beers Group Distribution Update

De Beers Group says it will streamline the Supplier of Choice application
process for the 2012–2015 contract period, requiring a single contract proposal
questionnaire per applicant to cover multiple categories of goods. In addition,
the Diamond Trading Company will change future intention-to-offer allocations
to better reflect sightholder demand.

De Beers also says Diamdel will continue to transfer more of its allocation
into the auction format while trying to provide wider market access. Diamdel
auctions represent a relatively small proportion of De Beers’ overall sales of
rough diamonds, but existing Diamdel customers, DTC sightholders, and
eventually the wider market will be able to participate in Diamdel auctions. Sightholders
can participate in Diamdel auctions beginning in October 2010 with no effect on
their ITO allocations.