M. Fabrikant And Sons, Inc., And Its Domestic Associate File Voluntary Petitions For Relief

On November 17, 2006, M. Fabrikant and Sons, Inc. and its domestic associate Fabrikant-Leer International Ltd., filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code.

It is reported that Fabrikant-Tara International, LLC, a diamond and gemstone jewellery wholesaler, primarily owned by Tara Jewels Holdings Inc. and, in part, by M. Fabrikant & Sons, has not filed for chapter 11 relief of the Bankruptcy Code and does not view the bankruptcy filings of M. Fabrikant & Sons, Inc. or Fabrikant-Leer International, Ltd. negatively affecting its business.

Fabrikant-Tara International, LLC continues to run its business smoothly and is able to live up to its commitments to its vendors and customers.