Collectors Universe's Diamond Grading Unit GCAL Selected by the Government of the
Northwest Territories to Provide Services for Its Diamond Certification Program
NEWPORT BEACH, Calif., April 20 /PRNewswire-FirstCall/ -- Collectors Universe, Inc.
(Nasdaq: CLCT), a leading provider of value-added authentication and grading services
to dealers and collectors of high-value collectibles and diamonds, today announced
that its diamond grading division, Gem Certification & Assurance Lab, Inc. (GCAL),
has been selected by the Government of the Northwest Territories of Canada (GNWT)
to provide Gemprint digital imaging as the unique identification technology for
the GNWT's diamond certification program.
The selection of GCAL to provide Gemprint digital imaging is part of the continuation
of an existing GNWT program that began in 2001 whereby diamonds are certified, at
the option of the diamond manufacturer, by GNWT as being mined, cut and polished
in the Northwest Territories. The Gemprint process is a non-invasive, patented identification
technology that captures and stores a digital image of the unique refractive pattern
that is, in essence, the diamond's "fingerprint." To participate in the GNWT certification
program, a diamond manufacturer is required to use GCAL's certification service,
which includes a Gemprint digital image of the diamond. GCAL forwards that Gemprint
image to the GNWT for inclusion as a part of the GNWT diamond certificate. Each
GNWT diamond certificate is signed by the Premier of the GNWT and is provided to
the diamond manufacturer and can accompany the diamond through the various distribution
channels to the retail counter. Because the Gemprint image for a GNWT certified
diamond can be retrieved from GCAL's database at any point in the distribution process
for matching to the GNWT certificate, there is an increased level of security against
anyone being able to successfully substitute, during the distribution process, diamonds
sourced outside of the Northwest Territories for the diamonds that have been certified
by the GNWT.
In addition to these services, GCAL will support a co-marketing program with the
GNWT to promote diamonds from the Northwest Territories that are certified under
this GNWT program.
GCAL plans to market its diamond grading services and related bundled services,
such as direct light performance, together with its Gemprint service, to the Northwest
Territories diamond manufacturers. According to the GNWT, in 2004, an estimated
total of 12.6 million carats or $1.65 billion USD in rough diamonds from the Northwest
Territories were processed, although not all of this production participated in
the GNWT certification program. Canada is the third largest producer of diamonds
in the world. (Source: 2005 Diamond Industry Report, Diamond Facts, Northwest Territories
Canada)
GCAL President Don Palmieri commented, "The Canadian diamond program is the most
noted verified source program and it is an ideal match for GCAL and the GCAL Five
Star Diamond Certificate, since we already include the Gemprint identification 'fingerprint'
as one of the five stars from our services."
Chief Executive Officer of Collectors Universe, Michael Haynes said, "Diamonds sourced
from the Northwest Territories are becoming more important in the U.S. and world
markets. We believe that the combination of the Northwest Territories certification
and the associated GCAL Gemprint will increase the confidence of the diamond buyer
regarding the source of these Canadian diamonds. This agreement represents another
step in our efforts to become a driving force in the diamond authentication and
grading market."
More information about the GNWT certification program and diamonds can be found
at http://www.iti.gov.nt.ca/diamond/index.htm. Retail information about GNWT certified
diamonds can be found at www.rareinnature.com.
About Collectors Universe
Collectors Universe, Inc. is a leading provider of value added services to the high-value
collectibles and diamond markets. The Company authenticates and grades collectible
coins, sports cards, autographs, stamps currency and diamonds. The Company also
compiles and publishes authoritative information about United States and world coins,
collectible sports cards and sports memorabilia, collectible stamps and diamonds.
This information is accessible to collectors and dealers at the Company's web site,
www.collectors.com, and is also published in print.
Forward Looking Information
This news release contains statements regarding our expectations about our future
financial performance which are "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements can be identified
by the use of words such as "believe," "expect," "anticipate," "intend," "plan,"
"estimate," "project," or future or conditional verbs such as "will," "would," "should,"
"could," or "may."
Due to a number of risks and uncertainties to which our business is subject, our
actual financial performance in the future may differ, possibly significantly, from
our expected financial performance as set forth in the forward looking statements
contained in this news release. Information regarding those risks and uncertainties,
and their possible impact on our future financial performance, including, but not
limited to the risks that our strategy to expand into new collectibles and other
high value asset markets, such as the diamond market, will not be successful in
enabling us to improve our profitability and that those businesses and the services
that they provide will not gain market acceptance, or will increase our operating
expenses and possibly cause us to incur losses. Additional information regarding
these and other risks and uncertainties to which our business is subject is contained
in our Annual Report on Form 10-K for our fiscal year ended June 30, 2005 which
we filed with the Securities and Exchange Commission on September 13, 2005 and our
quarterly report on Form 10-Q for the fiscal quarter ended December 31, 2005, which
was filed with the Securities and Exchange Commission on February 9, 2006. Due to
the above-described risks and uncertainties and those described in our 2005 Annual
Report on Form 10-K and our quarterly report on Form 10-Q, readers are cautioned
not to place undue reliance on the forward-looking statements contained in this
news release, which speak only as of its date, or to make predictions about future
performance based solely on historical financial performance. We also disclaim any
obligation to update forward-looking statements contained in this news release or
in our Annual or Quarterly Reports filed with the Securities and Exchange Commission.
Contacts:
Joe Wallace
Chief Financial Officer
Collectors Universe
949-567-1245
Email: jwallace@collectors.com
E.E. Wang
Investor Relations
The Piacente Group, Inc.
212-481-2050 ext. 605
Email: ee@thepiacentegroup.com
SOURCE Collectors Universe, Inc.
04/20/2006
CONTACT: Joe Wallace, Chief Financial Officer of Collectors Universe,
Inc., +1-949-567-1245, jwallace@collectors.com; or Investor Relations, E.E.
Wang of The Piacente Group, Inc., +1-212-481-2050, ext. 605,
ee@thepiacentegroup.com, for Collectors Universe, Inc.
Web site: http://www.iti.gov.nt.ca/diamond/index.htm
Web site: http://www.rareinnature.com
Web site: http://www.collectors.com
(CLCT)