Exhibit 99.1


                    [MOISSANITE CHARLES & COLVARD(TM) LOGO]


For Immediate Release                    Contact: Jessica Blue, Richard French &
                                         Associates  919-832-6300


                      Charles & Colvard Provides Updates on
              Fourth Quarter Performance and Business Developments


MORRISVILLE, N.C., January 9, 2001 -- Charles & Colvard, Ltd., (Nasdaq:CTHR) the
sole source of moissanite - a created jewel available for use in fine jewelry -
today reported an update on fourth quarter and year-end shipments and other
business developments.

While the quarter's results have yet to be finalized, the company shipped
approximately 18,600 carats, which reflect a 26 percent increase over the same
period in 1999. The company expects dollar sales for the quarter to be
approximately the same as the fourth quarter of 1999. Total carat shipments for
2000 aggregated 68,800 carats, as compared to 1999 carat shipments of 55,000.
Full financial results for 2000 will be released on February 28, 2001.

Robert S. Thomas, president and chief executive officer of Charles & Colvard,
said, "Our decision to partner with domestic distributors in the second quarter
of 2000 continued to generate increased volume in the fourth quarter. Domestic
carat shipments are up 65 percent over 1999, while our international carat
shipments dipped, in part, due to the strong dollar.

Thomas continued, "The company's average selling prices were approximately the
same as the third quarter of 2000, but decreased compared to fourth quarter of
1999 due to volume discounts offered to domestic distributors. Our cash position
at year end was approximately $3.7 million, reflecting our ongoing efforts to
manage our liquidity."

In other corporate news, the company and Cree, Inc. have agreed on a framework
for purchases of silicon carbide crystals for calendar 2001. Under the terms of
the agreement, Charles & Colvard will be obligated to purchase silicon carbide
crystals only upon issuance and Cree's acceptance of purchase orders. The
company currently has no purchase commitment.

Thomas added, "This new agreement reflects the evolution of the business
relationship between the company and Cree. While we work to reduce overall
inventory levels in 2001, new material will be required to replace the most
popular shapes and sizes of gemstones."

                                     -more-



Charles & Colvard
January 9, 2001
Page 2 of 2



Charles & Colvard, based in the Research Triangle Park area of North Carolina,
became a public company in 1997. For more information, please access
www.moissanite.com.

This press release contains forward-looking statements that relate to the
company's future plans and objectives. These statements are subject to numerous
risks and uncertainties, including without limitation the limited operating
history upon which the company and its prospects can be evaluated, the need for
further development of the company's products, the company's reliance on Cree,
Inc. as a developer and supplier of silicon carbide crystals, the small size of
the current market for the company's products and uncertainty of market
acceptance and demand for such products in the future. These and other risks and
uncertainties, which are detailed in the company's filings with the SEC
including Forms 10-K and 10-Q, could cause actual results and developments to be
materially different from those expressed or implied by any of the
forward-looking statements included in this press release.

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