The Customer Wants to Know

Transparency & theNew World of Diamonds

Mr. Amihai Zivan SussholzYEI- Yahalomei Espeka International Ltd.

YEI at a Glance

Founded in 1969

Sightholder since 1993

Serves hundreds of clients from 6 offices in major worldwide diamond

centers

Specializes in fine-make small round diamonds under 1ct

Capable of catering to very specific client requests (special sizes)

Over 2,600 employees in two manufacturing facilities

State-of-the-art production facility in Panyu, China

Luxury Jewelry - Raising Standards

THEY WANT MORE! More services More partnership – particularly in product development

and marketing More flexibility More attentive to make More careful about quality - end-customer is more informed

Luxury jewelry manufacturers want more professional partners who provide transparency

and real added value

Sorting and ease-of-ordering

Sorting and ease-of-ordering

Partnership via joint marketing initiatives

Partnership via joint marketing initiatives

Inventory / Availability

Inventory / Availability

Conveniently located offices

Conveniently located offices

Fine-make diamonds)or other “specialty(”

Fine-make diamonds)or other “specialty(”

Efficient, ethical sourcing

Efficient, ethical sourcing

CUT

CUT

SUPPLY VALUE

Expectations

How it Works @ YEI

ValuePre-sorted product and easy

ordering as well as joint marketing programs and other

value-added services.

ValuePre-sorted product and easy

ordering as well as joint marketing programs and other

value-added services.

CutHighest standards for fine-

make production.

CutHighest standards for fine-

make production.

SupplyCustomers have what they want available when and

where they need it.

SupplyCustomers have what they want available when and

where they need it.

ProfessionalismHave attained and exceeded

industry standards for production and

ethical practices (BPP, ISO).

ProfessionalismHave attained and exceeded

industry standards for production and

ethical practices (BPP, ISO).

Cut

Maintain high-quality rough sourcing

capabilities (located in Israel).

Sightholder status enhances customer

confidence in the product.

Excellent reputation for fine-quality make

backed up by experienced, well-trained

staff and top-notch facilities.

Supply - Sorting

Over 2000 assortments available.

Customers can purchase specific sizes and not only parcels.

For both large and small clients, pre-sorted product helps clients save time and money.

For both large and small clients, pre-sorted product helps clients save time and money.

Supply – Inventory/Availability

Each of over 2,000 items are stored independently. Online “Harmony” stock system allows customers to

know exactly what’s available. Worldwide offices to reduce time for communication

/delivery

Having a large inventory means the customer

doesn’t need to maintain one.

Having a large inventory means the customer

doesn’t need to maintain one.

Value - Ease-of-Ordering

Clear Code - YEI’s proprietary coding system

Developed as “The Espeka Language” and upgraded over the years.

Order precisely the stones they need, with no leftovers and

no bulk packages.

Simplifies ordering and especially reordering

Value - Partnership

YEI has developed joint marketing initiatives with

both U.S. and Asian jewellery manufacturers

PERFECTLY MATCHED DIAMONDS:

Identically-cut fine-make stones manufactured

by YEI.

Jewelry created by retailer

Marketing & Advertising - developed jointly

Support includes advertising,

in-store materials and staff training

Establishing clear objectives and goals (which each side needs to

consider and agree upon)

Expectations, milestones for success, etc

Understanding the local market and consumer

Choosing the right communications approach

Maintaining consistency (over time/geography)

Value - Partnership (cont.)

Excellent reputation for fine-make diamonds State-of-the-art China manufacturing complex – excellent

evaluation in annual BPP review… Exceed industry standards so clients can be more confident in

product ISO 9001 certification achieved in early 2008

Professionalism

Who Wins?

EVERYONE!

ClientsBetter service, lower costs

ClientsBetter service, lower costs

YEISatisfied customers

YEISatisfied customers

IndustryProgressive practices

become the norm

IndustryProgressive practices

become the norm

Leading the way to the

New World of Diamonds