W.B. DAVID & CO., INC.
AUCTION SALE-MAY 25, 2006

G.E.M. Auction, Corp. as agents for ABN Amro Bank N.V. and Israel Discount Bank of New York will sell at public auction on May 25, 2006 approximately $3,000.000.00 of certified, uncertified diamonds and rings.  Contact John Cronin at 718-222-0100 for more information. 

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NOTICE OF PUBLIC SALE

NOTICE IS HEREBY GIVEN that, pursuant to Section 9-610 of the Uniform Commercial Code (“UCC”), as adopted in the State of New York and the terms and provisions of certain notes, guarantees, loan, pledge and security agreements and other related loan documents (collectively referred to herein as the “Loan Agreements”), and pursuant to that certain Order Granting Motions of ABN AMRO Bank N.V. and Israel Discount Bank of New York Pursuant To Section 362 Of The Bankruptcy Code For Relief From The Automatic Stay entered by Judge Robert Gerber on February 16, 2006 in In re W.B. David & Co., Inc., Case No. 06-10150 pending in the United States Bankruptcy Court for the Southern District of New York, the Israel Discount Bank of New York and ABN AMRO Bank, N.V. (collectively, the “Banks”), through their agent, G.E.M. Auction Corp. (the “Auctioneer”), will offer for sale to the public (the “Auction”) all of the right, title and interest of W.B. DAVID & CO INC., in and to certain certified and uncertified diamond and other jewelry inventory (the “Collateral”), on an “AS IS WHERE IS” basis, pursuant to the following terms and conditions.

TIMING/LOCATION OF THE AUCTION
Date and Time of Sale: MAY 25, 2006 at 11:00 a.m. (Eastern Time)
Location of Sale: Mayer, Brown, Rowe & Maw
1675 Broadway, 19th Floor
New York, New York 10019-5820

TERMS AND CONDITIONS OF THE AUCTION
1. The Collateral will be offered for sale first in bulk and then in single lots. The Collateral will be sold to the purchaser(s) that make the highest and best bid and/or aggregate of bids at the Auction. The Auctioneer, in consultation with the Banks, shall determine the highest and best bid for the Collateral.
2. Parties interested in bidding at the Auction should contact the Auctioneer for additional information and details concerning the Collateral, Further, arrangements can be made with the Auctioneer to examine the Collateral prior to the date of the Auction. The Collateral will not be available for inspection at the Auction itself.
3. The Collateral is being sold on an “AS IS WHERE IS” basis, without recourse, warranty or guaranty, whether express or implied. Neither the Auctioneer, nor either of the Banks, make any representations or warranties as to the Collateral and the sale is specifically subject to all taxes, liens (other than those of the Banks), claims, assessments, liabilities and encumbrances, if any, that may exist against the Collateral under the UCC and applicable law. Without limiting the generality of the foregoing, the Auctioneer and the Banks expressly disclaim all representations or warranties with respect to the Collateral, including without limitation, those relating to the condition of title to, the completeness or accuracy any description of, or the rights and liabilities that accompany, the Collateral.
4. In order to participate in the Auction each potential bidder must be physically present at the Auction and demonstrate, to the satisfaction of the Auctioneer, in consultation with the Banks, that each such bidder has the financial means to close on any bid made at the Auction. The Auctioneer, in consultation with the Banks, reserves the right to reject any bid or all bids at the Auction or any adjournment of the Auction and to announce such other terms at the Auction as may be reasonably necessary under the circumstances. Further, the Banks reserve the right to direct the Auctioneer to cancel, postpone or adjourn the Auction by announcement made at the auction, either before or after the commencement of bidding, without written notice or further publication. The Banks, which collectively are owed amounts in excess of $5 million secured by the Collateral, reserve the right to credit bid any portion of that indebtedness at the Auction.
5. The Auctioneer, in consultation with the Banks, will determine the highest and best bid made at the Auction for any portion of the Collateral (the “Winning Bid”), and the party submitting a Winning Bid for such Collateral (the “Successful Bidder”) must provide at the Auction a cashier’s, bank or certified check made payable to the Auctioneer in the amount of not less than 15% of the initial bid made (“the “Deposit”). The Successful Bidder shall deliver the balance of the Winning Bid (the “Balance”) and a buyer’s premium equal to 5% of the Winning Bid (the “Buyer’s Premium and collectively with the Balance, the “Amount Due”), by wire transfer or certified funds within twenty-four (24) hours of the conclusion of the Auction (the “Payment Deadline”).  If the Successful Bidder fails to pay the Amount Due by the Payment Deadline, the Deposit will be forfeited to the Banks as liquidated damages. Following such default, the Auctioneer, in consultation with the Banks, may sell the Collateral that was the subject of such bid without further notice.
6. The Successful Bidder may remove the goods purchased by its Winning Bid at the Auction once the Amount Due has been paid, but in any event by no later than forty-eight (48) hours after the conclusion of the Auction (the “Pick Up Deadline”). All goods not removed by the Pick Up Deadline, whether or not payment has been made to the Auctioneer, may be resold at any time thereafter, without further notice, at the risk, expense and for the account of the Successful Bidder, without any responsibility whatsoever by the Auctioneer and/or the Banks.
7. Upon indefeasible payment in full of the Winning Bid by the Successful Bidder(s), the Banks will cause to be delivered to each such Successful Bidder or its designee a bill of sale for the Collateral purchased by such Successful Bidder at the Auction.

REQUEST FOR FURTHER INFORMATION
All inquiries concerning this Notice of Sale and requests to inspect the Collateral should be made to the Auctioneer G.E.M. Auction Corp., 499 Van Brunt St., Suite 4B, Brooklyn, N.Y. 11231 (telephone: 718-222-0100) (facsimile: 718-222-4030) (email: www.gemassociates.com). The Auctioneer, in consultation with the Banks, reserves the right to require any person making such request to disclose the person or entity upon whose behalf such information is being sought, and to require any person that seeks to inspect the Collateral to demonstrate to the reasonable satisfaction of the Auctioneer, in consultation with the Banks, that such person does not present a security risk and/or is financially capable of making a Winning Bid at the Auction.