LJ International Announces Formation of Special Committee to Review "Going Private" Proposal

LJ International Inc.

("LJI" or "the Company"), a leading colored gemstone and diamond jeweler with retail and wholesale businesses, today announced that its Board of Directors has formed a special committee of disinterested directors (the "Special Committee") consisting of 3 independent directors, Mr. Xiang Xiong Deng, Mr. Jin Wang and Ms. Jieyun Yu, to consider the non-binding proposal from Mr. Yu Chuan Yih ("Mr. Yih"), Chairman of the Board of Directors, President and Chief Executive Officer of the Company, and Urban Prosperity Holdings Limited, an affiliate of FountainVest Partners to acquire all of the outstanding ordinary shares of the Company not currently owned by Mr. Yih. The Special Committee intends to retain an independent financial advisor and legal counsel to assist it in its work. No decisions have been made by the Special Committee with respect to the Company's response to the proposed transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. About LJ International Inc. LJ International Inc. (LJI)

is engaged in the designing, branding, marketing and distribution of