The Israeli Diamond Industry Signs Memorandum of Understanding with Indian Diamond Industry

MOU Signed by the Israel Diamond Institute Group of Companies and the Gem and Jewellery Export Promotion Council of India

RAMAT GAN, Israel, November 26 - The Israel Diamond Institute Group of Companies (IDI)
announced today that a Memorandum of Understanding (MOU) has been signed with
the Gem and Jewellery Export Promotion Council of India (GJEPC) for the
establishment of areas of cooperation between the two parties. The MOU was
signed at a ceremony in Mumbai today by IDI Managing Director Eli Avidar, and
GJEPC Executive Director Sabyasachi Ray.

The MOU states that the two parties share the desire to
promote positive relations between the two industries, and to enhance areas
of cooperation between them, as well as to intensify the dialogue concerning
issues of mutual interest via collaboration between the parties.

Moreover, the MOU states that the parties are convinced that
cooperation and partnership between them will benefit the development of
stronger relations between the two industries.

The MOU calls for:

    - An examination of joint interests to safeguard the industry;

    - Establishment of joint lobbying activities for the reduction
      of import taxes on loose diamond in pertinent markets;

    - Collective efforts to promote the sales of diamond jewelry
      in the local Indian and Israeli markets;

    - Creating a joint taskforce to examine the issue of
      international bankruptcy and the ways in which it affects the
      parties.

IDI Chairman Moti Ganz said, "We are very pleased to have come
to this agreement with the Gem and Jewellery Export Promotion Council. As two
of the world's strongest diamond manufacturing and trading centers we share
many areas of interest. The MOU will enable us to pursue collaborative
efforts which will certainly have a positive impact on the diamond industries
in both countries."

IDI Managing Director Eli Avidar said, "India represents one
of our most important potential business partners, for manufacturing, trading
and selling diamonds and diamond jewelry. The Israeli Diamond Industry today
enjoys excellent relations with the Indian industry. There is potential for a
dramatic growth in bilateral trade and cooperation between the two countries.
With the signing of this MOU, we believe that our mutual benefits will
increase exponentially." Avidar said that the new MOU is in keeping with of
IDI's policy of actively expanding cooperative relations with major diamond
manufacturing and commercial centers.

    Contact:
    Sharon Gefen
    Tel: +972-3-5442999; +972-54-4494494
    E-mail: sharon@gefenltd.com
    www.israelidiamond.co.il

Contact: Sharon Gefen, Tel: +972-3-5442999; +972-54-4494494, E-mail: sharon at gefenltd.com