M. Fabrikant & Sons Forms Joint Venture

September 18, 2003

M. Fabrikant & Sons Forms Joint Venture

M. Fabrikant & Sons, Inc., New York City, together with Jean Paul Tolkowsky and Lior Kunstler of Exelco N.V., Antwerp, Belgium, announced they have formed a new joint venture for the cutting and polishing of ideal cut triple excellent diamonds in Thailand, and for the opening of a new diamond trading operation in Antwerp. The Thailand cutting venture is a result of the acquisition by M. Fabrikant & Sons of a 50% ownership position in H&A Cutting Works, Ltd., with the remaining 50% owned by Jean Paul Tolkowsky and Lior Kunstler.

"This is an exciting opportunity for us to work with talented, experienced and entrepreneurial marketers," says Matthew Fortgang, President of M. Fabrikant & Sons. "This partnership will expand the reach of Fabrikant and the commitment we have to our customers by continuing to offer the best value for the finest cut and polished stones available in the marketplace."

Fabrikant and its partners will expand H&A Cutting factory to increase the manufacturing of ideal cut Hearts and Arrows and triple excellents, as well as numerous other signature diamonds, both round and fancy shapes. The company anticipates as many as 600 workers will be employed when the expansion is completed in January.

The new selling and trading operation in Antwerp, to be known as FTK Worldwide Manufacturing, will sell goods produced in the Thailand factory as well as trade in original business, selected production and rough stones.

"We are excited about the prospect of working with Fabrikant," Exelco principals Tolkowsky and Kunstler commented in a press release. "The marketing and distribution strength of Fabrikant, coupled with our manufacturing and trading skills will enable both organizations to experience significant growth."

M. Fabrikant & Sons, Inc. is a fifth generation family owned and operated business. It is one of the oldest diamond and jewelry companies in the world. Jean Paul Tolkowsky is a seventh generation diamond entrepreneur whose tradition and family includes Marcel Tolkowsky who famously described the "ideal cut" diamond, and Gabi Tolkowsky who cut and polished the De Beers Centenary diamond. Lior Kunstler comes from a third generation diamond family with a background in manufacturing and marketing.

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