DGSE Companies, Inc. Announces Acquisition of All of the Assets of Euless Gold &Amp; Silver

DGSE Companies, Inc. (NASDAQ: DGSE), which wholesales, retails and auctions fine watches, jewelry, diamonds, precious metal and rare coin products via traditional and Internet channels, today announced that it has completed the acquisition of all of the tangible and intangible assets of Euless Gold & Silver. The business will operate under the Dallas Gold & Silver Exchange name immediately. The transaction was completed for cash and a note and is expected to be immediately accretive to earnings. DGSE did not assume any liabilities of Euless Gold & Silver in the transaction. To facilitate the transaction DGSE’s primary lender modified its current credit facility and increased the company’s lines of credit.

“We are very pleased to have an opportunity to acquire the assets of a business with a 28-year history that did approximately $ 3.2 million in profitable revenue in fiscal 2006,” noted William H. Oyster, President and Chief Operating Officer of DGSE Companies, Inc. Mr. Oyster continued, “We had previously announced our intention to enter the Fort Worth, Texas market and the acquisition of a profitable existing business in the area allows us to immediately integrate these activities with our existing operations. The acquisition of the Euless operations along with the anticipated closing of our acquisition of Superior Galleries, Inc. in Beverly Hills, California in late May will provide DGSE with a more diversified platform for future growth. We will continue to explore other opportunities to buy or build to extend both our revenue and earnings.”

DGSE Companies, Inc. wholesales and retails jewelry, diamonds, fine watches and precious metal bullion products and rare coins to domestic and international customers through its Dallas Gold and Silver Exchange and Charleston Gold and Diamond Exchange subsidiaries and as well as through the internet. DGSE also owns Fairchild International, Inc., one of the largest vintage watch wholesalers in the country. In addition to its retail facilities, the Company operates live Internet auctions which can be accessed at www.dgse.com. Real-time price quotations and real-time order execution in precious metals are provided on another DGSE web site at www.USBullionExchange.com. Wholesale customers can access our full vintage watch inventory through the restricted site at www.FairchildWatches.com.

The Company is headquartered in Dallas, Texas and its common stock trades on The Nasdaq Stock Market(R) under the symbol “DGSE.”

This press release includes statements which may constitute “forward-looking” statements, usually containing the words “believe,”"estimate,”"project,”"expect” or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company’s products and services in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company’s periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. In addition to the results presented in accordance with Generally Accepted Accounting Principles throughout this press release, DGSE has presented non-GAAP financial measures as EBITDA. The Company believes that these non-GAAP measures, viewed in addition to and not in lieu of the Company’s reported GAAP results, provide useful information to investors because they are an integral part of the Company’s internal evaluation of operating performance. In addition, they are measures that DGSE uses to evaluate management’s effectiveness. DGSE’s non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies.

 For further information, please contact:  William H. Oyster President and COO of DGSE (800) 527-5307  

SOURCE: DGSE Companies, Inc.