2. 1 Dubai – City of Gold - 2006 Dubai – City of Gold - 2006 Diamond Trading on the Internet Threat or Opportunity April 24, 2006 – Dubai Martin Rapaport Martin @ Rapaport. Com www. Rapaport. Com

3. 2 About Rapaport Rapaport Group –Global Organization About 100 employees Offices and Companies: Las Vegas, New York, Antwerp, Vicenza, Ramat Gan, Mumbai, Dubai, and Hong Kong –Rapaport Information Services Primary Source of Diamond Price and Market Information Rapaport Diamond Report Rapaport News @ www. Diamonds. Net; Research

4. 3 About Rapaport Rapaport Group –Diamond Trading Services INDEX ® – Internet Diamond Exchange – B2B RapNet ® – Diamond Trading Network – B2B –Daily Listings of over $2.25 Billion Diamond Tenders & Brokerage Services www. Diamonds. Com – B2C –Corporate Responsibility and Advocacy World Diamond Council – Kimberly Process Active in Sierra Leone with US AID & DFID Fair Trade Diamonds and Jewelry

5. 4 The Information Revolution Information Technology and the Internet are revolutionizing the world we live in Integrated Information Systems now store and process unlimited amounts of information The Internet provides a highly efficient global communications network enabling the delivery of highly specific information to everyone and anyone

6. 5 Information Issues Information revolution not evolution –IT capacity and capability is growing faster than our ability to use it. –We do not control information, information controls us. Unlimited information is too much information –The great challenge is how to mine and use information IT is powerful not because it stores information. –Real power comes from the ability to select and communicate information

7. 6 Information Issues Everyone and anyone has access to information –The cost of information communication approaches zero –There is no relation between the cost of information and its value –It is hard to control who gets information and how they use it Transparency is a social value because it is a technological inevitability

8. 7 Information Impact The unlimited availability of information is impacting global politics, economics, science and trade as it creates an enabling environment for globalization. We are at the dawn of a new information age whose impact on civilization will be greater than anyone can imagine.

9. 8 Internet Facts

10. 9 The Internet and Diamonds Diamonds come in a broad range of shapes, sizes and qualities. There are thousands of diamond types. Diamond demand tends be very specific. Finding the right diamond can be like looking for a needle in a haystack. The Internet provides instant access to hundreds of thousands of diamonds worth billions of dollars. It enables buyers to selectively and competitively search, compare, price and locate the exact diamond they need in minuets. The availability of diamonds on the Internet is having a major impact on the B2B and B2C diamond markets.

11. 10 The Internet and Jewelry

12. 11 Key Questions Can business survive when customers know prices? –Is an educated consumer our best customer? –Being transparent sounds good but what about profit margins Are diamonds a commodity? –If yes, is this good or bad for the diamond industry? –Gold has doubled in price since 2002, why hasn’t diamonds? –Can emotional demand coexist with a commodity? –Are investment diamonds dangerous? How will the Internet change the way we do business? –How can we use the Internet to enhance our position?

13. 12 Diamond and Gold Prices Thank You Martin Rapaport

14. 13 Conclusion The Candle Story

15. 14 Conclusion Thank You Martin Rapaport