House of Taylor Secures Financing

House of Taylor Jewelry, Inc. said it has completed several initiatives that strengthen its capital structure. These include:

* Securing a $30 million credit facility through New Stream Capital. The credit facility consists of a three-year, $5 million term loan and a $25 million revolving line of credit. The revolving credit portion of the facility permits borrowings based upon a formula based on the company’s working capital levels.

* Completing an equity financing and receiving gross proceeds of approximately $5.8 million through the issuance of approximately 6.1 million shares of common stock at 95 cents per share to an unnamed group of institutional and accredited investors and warrants that will allow them to purchase up to approximately 9.2 million shares of common stock. The term of the warrants is seven years and each of the warrants allows the holder to purchase one share of common stock at a price of 95 cents per share.

* Repaying the balance of the company’s senior secured convertible notes, which were issued in May 2006, for approximately $9.6 million using proceeds from the equity financing and borrowings from the credit facility.

Effective on completing these transactions, Bob Rankin, the company’s chief financial officer, assumed the additional executive role of chief operating officer.

“Completing these initiatives are milestone accomplishments which substantially increase the Company’s financial flexibility and provide us with the opportunity to effectively execute on our long-term growth strategies,” said Jack Abramov, president and chief executive officer. “In just 24 months, we have significantly expanded the number of independent retail doors that carry our branded products. The credit facility and equity investment position us to meet demand and ramp up production and distribution as we continue our strategic expansion of the Elizabeth Taylor and Kathy Ireland brands, particularly in our Kathy Ireland bridal and diamond essential categories.”

House of Taylor Jewelry is a Los Angeles-based jewelry company whose principal shareholders include entities owned by Dame Elizabeth Taylor and Kathy Ireland, along with members of the Abramov family. It serves fine jewelry retailers worldwide with diverse jewelry collections marketed under the brands Elizabeth, House of Taylor Jewelry, and Kathy Ireland Jewelry Exclusively for House of Taylor Jewelry.

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