This will be ALROSA’s first international auction to sell over 10.8 ct diamonds, extra large-sized stones included.

Bidding is scheduled to take place at the premises of the Diamond Chamber of Russia (Russian Diamond Bourse) in August 2003. The decision to hold the auction sale has been made pursuant to the recently adopted Resolution on the Importation into and Exportation from Russia of Natural Rough and Polished Diamonds approved by a special decree of the President of the Russian Federationin November 2002.  

Formerly large diamonds (sizes over 10.8 ct) were sold by auction exclusively to Russian diamond manufacturers.

Extra large size goods (sizes over 50 ct) – those which have not been pronounced ‘unique’ by the Finance Ministry panel of experts – and indivisible lots of diamonds sized 10.8-50 ct will be offered for sale.

The sale is to be held in the form of a closed auction where established Russian diamond manufacturers and foreign-based diamantaires of high repute, all specializing in large goods, will be invited as buyers.

Upset prices of extra large single diamonds and boxes of large goods have been set by ALROSA experts through valuation of the rough on the basis of polished value projections.         All the bidders will be given an opportunity to examine the goods to be sold prior to the auction. Those of the bidders who will have come up with the highest price for an item or a lot will be regarded as winners.

Note:

ALROSA Co. Ltd.

 ALROSAis a world’s major diamond producer accounting for about 25 per cent of the world diamond output. In 2002 it produced $1466 million worth of rough diamonds, its sales volume amounting to $1557 million, with $106 million from polished diamond sales. ALROSA’s production target for 2003 is $1560 million. The company’s biggest shareholders are the Russian Ministry of State Property (37%), and the Yakutian Ministry for the Management of State Property (32%).

For more information please contact:

Yuri Beskakotov                                         

ALROSA Press Service                              

E-mail: smi@alrosa.ru                       
Phone/Fax: 957-95-51                                             

External Affairs Department
E-mail: ead@alrosa.ru