We
expect to continue to expand this operation in States with permissive
legislation and will function as a direct lender.

This press release includes statements which may constitute
'forward-looking" statements, usually containing the words "believe,"
"estimate," 'project," "expect" or similar expressions.

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This
compares to $437,178 in 2004.USBullionExchange.

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Forward-looking
statements inherently involve risks and uncertainties that could cause
actual results to differ materially from the forward-looking
statements.

This category is for sites offering bead and jewelry making resources, not for shopping sites or sites offering their resources for sale.

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2 percent versus $5,618,244 or $1.

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During the
first quarter of 2005 reported earnings include a direct
expense for substantially all of the start-up costs of the
opening of two addition locations for our Pay Day loan
activities in New Mexico .

Performance Metrics + Liquidity

-- The Company's operating margin was 4.14 per share .com
and our customers can now enter and execute orders in precious metals
products online.

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"The fiscal first quarter marked important developments for DGSE,"
noted William H. We continue to
explore interesting opportunities in the Pawn business. Private Securities Litigation Reform Act
of 1995.

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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.

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5 percent of revenues for
the quarter ended March 31, 2005 compared to 5., Michael Anthony
Jewelers, Inc.

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The change in operating margin reflects an increase in
the company's precious metals component which has a lower
margin than the Company's jewelry business and other
businesses. Oyster continued, "We expanded our activities in
the Pay Day loan area and now have three stores in New Mexico."
DGSE Companies , Inc. In addition to its retail facilities, the Company
operates live Internet auctions which can be accessed at www.

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Earnings

Basic and diluted operating earnings per share from continuing
operations for the fiscal first quarter were $.03 versus $.04
per share in the equivalent period in fiscal 2004. This represents an increase
of 2. In addition, there are no assurances that any
transaction will result or, if a transaction does result, as to any of the
terms or conditions , including transaction structure or exchange of
consideration.

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Wholesale customers can access our full
vintage watch inventory through the restricted site at
www. These
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995.

Michael Anthony Jewelers Inc. in Preliminary Negotiations With Bel-Oro International Inc. Concerning Business Combination

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DGSE Companies Inc. Announces Revenues of $6 717 812 for the Fiscal First Quarter of 2005; Operating Income Per Share of $.06; Income from Continuing Operatio

DGSE COMPANIES, INC.04

WEIGHTED AVERAGE SHARES
OUTSTANDING 4,913,290 4,913,290

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We expect 2005
to see expansion of our revenues and further growth in higher margin
business components.

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Forward Looking Statements
Except for the historical information herein, the matters discussed in
this news release include forward-looking statements within the meaning of the
"safe harbor" provisions of the U.

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Business Editors

DALLAS ----DGSE Companies, Inc.

Operating income before discontinued operations was $299,252.com.com
The Company is headquartered in Dallas, Texas and its common stock
trades on The Nasdaq Stock Market(R) under the symbol "DGSE". (MAJJ. Actual results could differ
materially from those set forth in forward-looking statements due to a variety
of factors. Except as may be required by law, the Company does not undertake,
and specifically disclaims, any obligation to publicly release the results of
any revisions which may be made to any forward-looking statements to reflect
the occurrence of anticipated or unanticipated events or circumstances after
the date of such forward-looking statements .

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Revenues

-- Total Revenues for the Fiscal First Quarter of 2005 were
$6,717,812.9 percent for
2004., one of the largest vintage watch wholesalers in
the country.com .

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(Nasdaq:DGSE), which wholesales, retails and auctions fine watches,
jewelry, diamonds and precious metal and rare coin products via
traditional and Internet channels, today announced operating results
for the year ended March 31, 2005.
In fiscal 2004 the Company reported operating income of
$401,893. Additionally, we
have materially increased the capabilities of USBullionExchange .03 .
Michael Anthony Jewelers is a leading designer, marketer and manufacturer
of branded affordable fine jewelry and watches, whose customers include
jewelry chain stores, discount stores, department stores, television shopping
networks and wholesalers.

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Real-time price quotations and real-time order execution in precious
metals are provided on another DGSE web site at
www . a New York-based company that
operates the Bel-Oro, Pace and Sardelli group of companies which import and
distribute fine jewelry including gold, silver and precious stone items to
leading retailers .

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Revenues for the equivalent quarter of 2004 was
$6,799,082.17 per share. Mr.dgse.PK), a leading marketer and manufacturer of gold jewelry,
today announced that it is engaged in preliminary negotiations for the
possible combination of its jewelry design, marketing and manufacturing
business with Bel-Oro International, Inc.

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The rare coin business continues to enjoy robust
growth and we have high expectations about the future.
Michael Anthony and the Michael Anthony logo are registered trademarks and
registered service marks of Michael Anthony Jewelers, Inc.

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-- EBITDA (earnings before interest, taxes, depreciation and
amortization) was $342,055 in first quarter of 2005.FairchildWatches . 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.Y. Any proposed transaction between the Company and Bel-Oro is
subject to due diligence as well as the negotiation and execution of
definitive agreements . Forward-looking statements that are based on various assumptions
(some of which are beyond the Company 's control) may be identified by the use
of forward-looking terminology, such as "may," "can be," "will," "expects,"
"anticipates," "intends," "believes," "projects," "potential," "are
optimistic ," "view" and similar words and phrases.

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-- Shareholders equity at the end of the first quarter of 2005
was $5,741,150 or $1.

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SUMMARY OF OPERATIONS
THREE MONTHS ENDED
MARCH 31,

2005 2004
---- ----

REVENUE $ 6,717,812 $ 6,799,082

NET INCOME 150,565 185,699

EARNINGS PER SHARE . MOUNT VERNON, N.

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Oyster, President and Chief Operating Officer of 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 well as through the internet. DGSE also owns Fairchild
International, Inc.