IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NEW JERSEY

ANCO INDUSTRIAL DIAMOND CORP. and

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AMERICAN DIAMOND TOOL & GAUGE, INC.,

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on behalf of themselves and all others similarly situated,

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Plaintiffs,

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-against-

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Civil Action Index

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No. 01-4463 (SRC)

DB INVESTMENTS, INC.,

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CSO VALUATIONS A.G.,

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CENTRAL SELLING ORGANIZATION,

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DIAMOND TRADING COMPANY,

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DE BEERS CONSOLIDATED MINES, LTD.

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and DE BEERS CENTENARY A.G.

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Defendants.

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NOTICE OF PENDENCY OF CLASS ACTION

TO:

ALL PERSONS WHO PURCHASED ROUGH DIAMONDS FROM DE BEERS OR AFFILIATES OF DE BEERS DURING THE PERIOD FROM SEPTEMBER 20, 1997 THROUGH SEPTEMBER 25, 2003

THIS NOTICE CONTAINS IMPORTANT INFORMATION ABOUT YOUR RIGHTS

A class action lawsuit was filed in the United States District Court for the District of New Jersey by Anco Industrial Diamond Corp. and American Diamond Tool & Gauge, Inc. (“Plaintiffs”) against the defendants listed above (“Defendants”) for violating federal antitrust laws. The lawsuit claims that from 1997 to date, Defendants and their co-conspirators engaged in an illegal restraint of trade in the sale of rough diamonds through a contract, combination and conspiracy to maintain the prices of rough diamonds at artificially high and noncompetitive levels and that Plaintiffs were injured because they paid more for rough diamonds than they otherwise would have. Default judgments of liability were entered against Defendants. The Court authorized this lawsuit to proceed on behalf of a class of rough diamond purchasers consisting of:

ALL PERSONS WHO PURCHASED ROUGH DIAMONDS DIRECTLY FROM A DEFENDANT, A CORPORATION OR ENTITY OWNED OR CONTROLLED BY A DEFENDANT, OR A CORPORATION OR OTHER PERSON ACTING IN COMBINATION WITH A DEFENDANT, OR ANY OF THEM, AT ANY TIME DURING THE PERIOD FROM SEPTEMBER 20, 1997 THROUGH SEPTEMBER 25, 2003. THE CLASS EXCLUDES DEFENDANTS, DEFENDANTS’ OFFICERS AND EXECUTIVES, DEFENDANTS’ PARENTS, SUBSIDIARIES AND AFFILIATES, THEIR RESPECTIVE OFFICERS AND EXECUTIVES, SIGHTHOLDERS, CO-CONSPIRATORS, AND ANY FEDERAL, STATE, OR LOCAL GOVERNMENT PURCHASER.

You may be a Class Member unless you exclude yourself. If you are a Class Member and do not exclude yourself in the manner provided below, you will have the right to participate in any recovery if the Plaintiffs prevail, and you will be bound by any judgment or determination in the lawsuit, whether or not it is favorable to Plaintiffs and the Class. A Class Member who does not request exclusion can appear through its own attorney if it wishes. You do not have to do anything at this time to be considered a Class Member. As a Class Member, you have no obligation to pay any attorneys’ fees or expenses, unless you appear through your own attorney.

If you exclude yourself from the Class, you will not be bound by any determination or judgment entered in the lawsuit, you will not have the right to participate in any recovery if Plaintiffs and the Class prevail, and you may pursue your own claims against Defendants, so long as you file your own lawsuit within the applicable time limitations.

To exclude yourself from the Class, send a signed written request for exclusion from the Class by first-class mail, postmarked no later than October 15, 2004, addressed to Stamell & Schager, LLP, One Liberty Plaza, 35 th Floor, New York, NY 10006. The Court will exclude from the Class any member who requests exclusion. The request for exclusion must include (1) your name and address, and (2) a brief statement indicating that you request to be excluded from the Class. If you fail to provide the required information or fail to comply with the deadline for requests for exclusion, your exclusion request will not be valid and you will remain in the Class.

Any questions about this Notice should not be directed to the Court or the Clerk of the Court, but should be directed in writing to counsel for Plaintiffs and the Class: Jared B. Stamell, Esq., Stamell & Schager, LLP, One Liberty Plaza, 35 th Floor, New York, New York 10006.

This Notice is a summary of the lawsuit. For more detailed information, you can refer to the pleadings and other papers on file in the Office of the Clerk, United States District Court for the District of New Jersey, Trenton Division, the Clarkson S. Fisher Federal Building and U.S. Courthouse, 402 East State Street, Trenton, New Jersey 08608.

DO NOT TELEPHONE THE COURT OR THE CLERK OF THE COURT ABOUT THIS NOTICE.

Dated:

June 23, 2004

CLERK OF THE COURT

UNITED STATES DISTRICT COURT

DISTRICT OF NEW JERSEY