ARMENIA'S CUT DIAMOND PRODUCTION DROP 1.5% IN H1

August 01, 2005

Tacy Ltd., Israel
Aug 1 2005

Armenia cut diamond production totaled US$136.3 million in the first
half of 2005, a decrease of 1.5 percent as compared to the parallel
period last year, says Gagik Mkrtchian, the Trade and Economic
Development Ministry's official in charge of gemstones and jewelry.

Mkrtchian said that diamond sales rose by 0.5 percent to US$136.4
million, while diamond exports rose by 1.1 percent to US$136 million.

Armenia cut diamond production fell by 20 percent in 2004 and sales
fell by 19.8 percent. The drop in production and sales was attributed
to the dollar's devaluation against the Armenian dram in that year.