SOURCE: Global Diamond Exchange

December 20, 2006 16:30 ET

/ CORRECTION - Global Diamond Exchange Inc. Retires Common Stock, Further Reductions Considered

NEW YORK, NY -- (MARKET WIRE) -- December 20, 2006 -- In the news release "Global Diamond Exchange Inc. Retires Common Stock, Further Reductions Considered," issued earlier today by Global Diamond Exchange Inc. (PINKSHEETS: GBDX), the company mistakenly stated that the Authorized Share count was 975,000. The correct number is 975,000,000, which was reduced from seven billion as per the company's announcement December 5, 2006. Also, the share count of 88,000,000 was mistakenly stated as 88,000,000 million. The underlying issue of the 88,000,000 share reduction is correct, and the new Outstanding Share count will be 376,674,517. Global Diamonds sincerely regrets this oversight and any inconvenience this may have caused. Complete corrected text follows.

Global Diamond Exchange Inc. Retires Common Stock, Further Reductions Considered

NEW YORK, NY -- December 20, 2006 -- Global Diamond Exchange Inc. (PINKSHEETS: GBDX) has instructed its transfer agent, First Global Stock Transfer, to retire 88,000,000 shares of the company's common stock. This action will take effect immediately and comes on the heels of the company reducing its Authorized Share count from 7 billion to 975,000,000 shares.

This reduction is part of a continued program to increase shareholder value. Furthermore, additional reduction of the company's common stock is being considered. The company is also going through a transition period right now as it gets ready to move from its temporary office that building management has been kind enough to provide, into its new office on the seventh floor of 2 West 46th Street as the previous tenant has honored its obligation and has left the premises. Management will continue to update its shareholders on the second diamond shipment and further reductions in common stock throughout the holiday season.

About Global Diamond Exchange:

Global Diamond Exchange originally opened their office on 2 West 46th Street in the heart of the New York's Diamond District. After several years of operation at their New York office, the company decided to shut down the operation due to low pricing and soft demand in North America. The company concentrated its efforts on exporting cut diamonds from the Russia Federation and European locations. The new company has reopened its sales offices in the original building ready to take on the increased demand for fine quality diamonds.

NOTE: Safe Harbor for Forward-Looking Statements.

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, the ability of the Company to complete the planned bridge financing, market conditions, the general acceptance of the Company's products and technologies, competitive factors, timing, and other risks described in the Company's SEC reports and filings.

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