NEWS:  Las Vegas  show  mixed.  Loose diamond sales  were  slower than expected but jewelry did well.  Large better quality diamonds sold out at  strong  prices in spite  of  some  buyer  price resistance.  Lower quality small goods were  steady but mid quality and prices ranges did not move well. June DTC sight estimated at $610 million with 'average'

5% price hike.  Aber Diamond changes name to Harry Winston and reports

Q1-2007 sales +18% to $141  mil, profits -88%  to $3 mil after $14 mil foreign  currency  loss.  Diavik  mine  production +45%  to  1 million carats.

Fancies: Pear  Shapes did OK at the  Vegas  show but not  as strong as many would like.  Relatively good demand  for larger Hearts and Ovals.

Cushions OK  but Princess  and  Emerald  sales  were  relatively weak.

Overall demand  for  high and low  end goods was healthy but mid range diamonds were weak.  Collection colors were strong and the  bigger the better.

RETAIL QUOTE:

"The month as a whole showed some recovery after weakness in April but

the   consumer   environment  continues  to  be   somewhat  unsettled.

Thankfully, gasoline prices at the  pump have receded  a little in the last couple  of weeks and  the economic picture  has brightened a bit, which points to better times ahead."

---Michael Niemira, chief economist and director of research

   International Council of Shopping Centers