Lazare Kaplan International Inc. Signs Strategic Cooperation Agreement with NamGem.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 9, 2004

Lazare Kaplan International Inc. (AMEX:LKI) today announced that it has signed a strategic cooperation agreement with NamGem Diamond Manufacturing Company (PTY) Ltd. ("NamGem") for the cutting and polishing of

Under the terms of the agreement LKI will provide marketing and technical manufacturing assistance to NamGem. LKI will purchase rough diamonds and supervise the manufacturing of those deemed suitable to cut and polish. LKI will pay NamGem for manufacturing on a fee for service basis. All rough and polished diamonds will be bought and sold by LKI for its account.

"LKI understands the strategic importance of NamGem to the people and the government of Namibia and looks forward to a close and successful cooperation," said Leon Tempelsman, President of LKI.

Lazare Kaplan International Inc. sells its diamond and jewelry products through a worldwide distribution network. The Company is noted for its ideal cut diamonds which it markets internationally under the brand name, Lazare Diamonds(R).

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include a softening of retailer or consumer acceptance of or demand for the Company's products, pricing pressures, adequate supply of rough diamonds and other competitive factors. These and other risks are more fully described in the Company's filings with the Securities and Exchange Commission.