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September 19, 2007 – Coughlin Stoia Geller Rudman & Robbins LLP (“Coughlin Stoia”) (http://www.csgrr.com/cases/ljinternational/) today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of LJ International Inc. (“LJ”) (NASDAQ:JADE) common stock during the period between February 15, 2007 and September 6, 2007 (the “Class Period”).

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Coughlin Stoia at 800/449-4900 or 619/231-1058, or via e-mail at djr@csgrr.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.csgrr.com/cases/ljinternational/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges LJ and certain of its officers and directors with violations of the Securities Exchange Act of 1934. LJ is engaged in the design, branding, marketing and distribution of jewelry to jewelers, department stores, national jewelry chains and electronic and specialty retailers.

The complaint alleges that throughout the Class Period, defendants provided false and misleading reports overstating the Company’s fiscal 2005 and 2006 financial results. As a result of those false statements, the Company’s stock traded at inflated prices during the Class Period, reaching a high of $13.15 by May 14, 2007.

On July 16, 2007, the Company announced that it was delaying the release of its fourth quarter 2006 through second quarter 2007 financial results because the Company’s new auditors were unable to sign off on the Company’s accounting. Then on September 6, 2007, LJ disclosed that it had not achieved the fourth quarter and fiscal 2006 financial results it had previously provided on January 8, 2007, and upgraded on February 15, 2007, due to a “potential tax provision,” and that its fiscal 2006 earnings report of $3 million would “likely be adversely impacted.” On this news the Company’s stock price fell on extremely high trading volume, trading below $6 per share in the weeks following the July 16, 2007 disclosure and below $5 per share after the September 6, 2007 disclosure.

According to the complaint, the true facts, which were known by defendants but concealed from the investing public during the Class Period, were as follows: (a) defendants had understated LJ’s fiscal 2005 and 2006 tax liability and overstated the Company’s earnings and EPS prior to and during the Class Period and those false statements remained alive in the market during the Class Period; (b) revenues in LJ’s wholesale division had softened during the Class Period; (c) defendants made materially false and misleading representations regarding the Company’s ability to report the earnings required to facilitate meeting its stated goal of growing its Chinese stores to 100 in advance of the 2008 Beijing Olympics; and (d) the Company did not have the financial controls in place to accurately report financial results or to provide meaningful forward guidance during the Class Period.

Plaintiff seeks to recover damages on behalf of all purchasers of LJ common stock during the Class Period (the “Class”). The plaintiff is represented by Coughlin Stoia, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Coughlin Stoia, a 180-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Coughlin Stoia lawyers have been responsible for more than $45 billion in aggregate recoveries. The Coughlin Stoia Web site (http://www.csgrr.com) has more information about the firm.