september 2006 nasdaq:hotj . 2 safe harbor statement we make forward-looking statements in this...

September 2006NASDAQ:HOTJwww.hotj.com

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Safe Harbor StatementSafe Harbor Statement

We make forward-looking statements in this presentation which represent our expectations or beliefs about future events and financial performance. Forward-looking statements are identifiable by words such as “believe,” “anticipate,” “expect,” “intend,” “plan,” “will,” “may” and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties, including those described in the Company’s filings with the Securities and Exchange Commission. In addition, actual results could differ materially from those suggested by the forward-looking statements, and therefore you should not place undue reliance on the forward-looking statements.

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Who We AreWho We Are

Designs and markets branded jewelry in growing market

Exclusive jewelry licensees of Dame Elizabeth Taylor and Kathy Ireland. Jewelry brands include:• Elizabeth®

• House of Taylor Jewelry®

• Kathy Ireland Jewelry® Exclusively for House of Taylor Jewelry

Provides independent fine jewelry retailers worldwide with unique branding vehicle

Established, long-term supply relationships

Founded May 2005 by entities controlled by Dame Elizabeth Taylor and Kathy Ireland, and members of the Abramov family

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A Unique GemA Unique Gem

Beautiful, high quality jewelry

International recognition of Dame Elizabeth Taylor

Experienced management team

Branding power of Kathy Ireland

Worldwide

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World-Renowned Elizabeth TaylorWorld-Renowned Elizabeth Taylor

Academy Award-winning actress synonymous with jewelry

Successful marketer of fragrances• Legendary fragrances, White

Diamonds, Passion and Gardenia are historic in their successes

Respected activist and philanthropist

Owner of one of world’s largest and most valuable private jewelry collections

Virtually unmatched branding power worldwide

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Branding Power of Kathy IrelandBranding Power of Kathy Ireland

$1 billion-plus annual retail sales of Kathy Ireland-branded consumer products

Kathy Ireland’s exclusive products and specialty brands are in more than 50,000 retail doors worldwide

Exceptionally strong brand recognition with women 18-49 with annual income above $50,000

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Experienced Management TeamExperienced Management Team

Jack Abramov – President & CEO • Seventeen years jewelry industry

experience including manufacturing and diamond sourcing. Co-founded Techline Jewelry Inc.

Monty Abramov – EVP, Design Director• Twelve years creative jewelry

design experience. Utilizing innovative CAD technology, launched “Original Diamond Handbag Collection,” “Players Club” and “Flower Power.”

Pauline Schneider – CFO• Previously VP Finance for PRB

Gas Transportation Inc., where she saw company through early financing, IPO and two acquisitions.

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Recent Operational MilestonesRecent Operational Milestones

Robust inventory of 600-plus newly designed jewelry pieces ranging from entry level to premium and couture

Established relationships with nearly 135 independent retail organizations representing about 175 retail doors

Recruited and trained sales force with deep industry knowledge and existing retailer relationships

Completed product packaging, retail point-of-purchase displays, co-op advertising programs

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Expanding Retail Door PenetrationExpanding Retail Door Penetration

Retail Door Penetration

CA

NVIA

MN

OK

CO

MI

MT

WA

GA

FL

NH

ME

NY

OHIN

KYVA

NJPA

MD

DC

DE

OR

ID

WY

KS

NE

SD

ND

UT

AZNM

TX

AR

MO

LA

MSAL

TN

SC

NC

WVIL

WI MARICT

VT

HI

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Retail Brand StrategyRetail Brand Strategy

Offer jewelry lines representing two of the world’s top branding personalities

Multi-brand product lines include exquisite collections from entry level to one-of a kind couture pieces

Reach entire spectrum of consumers by using different brands covering various price points

Provide retailers strong branding opportunity as they face competition from other non-core retail jewelry channels

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The BrandsThe Brands

Includes one of a kind pieces• Classic• Elegant• Collectible

$3,000 to $1 million+

Frequently purchased, traditional jewelry• Rings• Pendants• Earrings• Bracelets

$3,000 to $25,000

Designs aligned with• Style Guides• Specialty brands

− acafe− Jardin du Jour− Quilts of Gees

Bend

$200 to $3,500

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Product CategoriesProduct Categories

Diamonds Colored Stones Pearls Bridal Gold Silver Watches Men’s

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Retail Marketing SupportRetail Marketing Support

Point-of-purchase display elements

Branded packaging

Use of Dame Elizabeth and Kathy Ireland images

Consumer advertising

Co-op program

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Retail Partnership PlansRetail Partnership Plans

Elizabeth Couture Partnership• Initial buy-in of

$100,000 with annual commitment of $200,000

Prestige Partnership• Initial buy-in of

$32,500 with annual commitment of $65,000

Platinum Partnership• Initial buy-in of

$50,000 with annual commitment of $100,000

Couture Partnership• Annual commitment

of $165,000+

Cherished Friends Partnership• Initial buy-in of

$12,500 with annual commitment of $25,000

Family Circle Partnership• Initial buy-in of

$25,000 with annual commitment of $50,000

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Notable Retail RelationshipsNotable Retail Relationships

*

*Participating in Christie’s October 11 auction

atMandalay Bay, Las Vegas

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Consumer Jewelry MarketConsumer Jewelry Market

$60 billion industry in U.S. alone

Diamond jewelry sales in U.S. rose 7% in 2005• 10th consecutive year of increased sales • Represented more than 50% of worldwide sales

Favorable Demographics• Jewelry consumer predominately female, age 25-54 with annual

income in excess of $50,000

Women’s inflation adjusted full-time earnings increased 17% over the past 15 years

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Growth StrategiesGrowth Strategies

Selectively expand multi-channel network• Elizabeth

− Limited number in each major metro market

• House of Taylor Jewelry− Upper tier retailers focusing on leading brands

• Kathy Ireland Jewelry Exclusively for House of Taylor Jewelry− Broad range of independent local, regional and national retailers

Secure additional supplier relationships

Maintain significant presence at major trade shows

Rollout specialty product brands from Kathy Ireland family of brands• Distribute through established Kathy Ireland retail channels

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OwnershipOwnership

Total common shares outstandingas of June 30, 2006: 39,385,153

Executive Officers and Directors 19%

Interplanet Productions, Limited 36%• Controlled by Dame Elizabeth Taylor

Sandbox Jewelry, LLC 18%• Controlled by Kathy Ireland

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Financial OverviewFinancial Overview

For the three months ended June 30, 2006, net sales increased to $2.5 million from $809,000 a year ago and increased from $1.4 million in the immediately preceding first quarter of 2006

For the first half of 2006, net sales rose to $3.8 million from $1.9 million in the comparable prior-year period

At June 30, 2006, company had cash and cash equivalents of $7.3 million and working capital of $11.5 million, compared with $3.1 million and $4.7 million, respectively, at December 31, 2005

Issued $11.66 million of convertible notes May 2006

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Investment HighlightsInvestment Highlights

Start-up company with existing infrastructure, global brand recognition and talented team • Early stage of lifecycle with significant room to grow

Distinctively positioned in lucrative, highly-fragmented marketplace estimated to be $60 billion in the U.S. alone and growing

Powerful brand portfolio

Proven management team with decades of experience designing and bringing fine jewelry to market

Branded jewelry becoming an ever growing trend

Unique value in brands, products and retail plan

Major ownership by Licensors

September 2006NASDAQ:HOTJwww.hotj.com