ARMENIAN POLISHED DIAMOND OUTPUT DOWN BY A FIFTH

Tacy, Israel
July 24, 2006

Polished diamond production in Armenia fell by over a fifth from US$131
million in the first half of 2005 to US$112 million in the first half
of this year, syas Gagik Mkrtchian, the official in charge of gemstones
and jewelry at the Armenian Trade and Economic Development Ministry.

Sales fell by over 18 percent from US$128 million to US$105 million,
while exports were down by 20.2 percent to US$101.5 million.

Mkrtchian attributes the drop in production and sales to the situation
on the global diamond market, explaining that no diamonds were imported
from Russia in the first half of 2006 due to their high cost. Instead
rough diamonds were imported from both Israel and Belgium.