Dear Plukka Investors,

June has been a busy month for Plukka. As many of you know the luxury goods climate has been a difficult one, and our share price has come under considerable pressure of late. We would like to reassure our investors that we are actively working to get Plukka back on track to delivering shareholder value, and on June 21st, I unveiled a plan to restructure the company and refine its business model at the ASX’s CEO Series Luncheon. The key points of the full presentation and the original ASX announcement are summarized below:

1. Company-wide restructuring starting with reduction in headcount by 56% over 3 months and a reduction of fixed costs to ~US$130,000 per month.

2. Greater leverage of “bricks" to "clicks” model to be based on the recently opened Chater House boutique – a low cost boutique in a high profile location. Chater House will be a key platform for the Asia/Pacific market and Plukka is considering similar opportunities both in the USA and in Asia Pacific. Plukka will not proceed with the opening of the Peninsula boutique, allowing funds to be diverted into the revised online marketing strategies and free management time on the core business activities.

3. Refinement of the marketing strategy to drive online sales by focussing marketing spend on strategic online channels with established ROI.

4. Focussing Plukka’s online product range by culling products unlikely to sell online and increasing focus on products priced between US$500 - $2,000.

5. Stricter product and designer exclusivity, in order to drive customer loyalty by reinforcing Plukka's reputation as the best destination for jewelry impossible to find elsewhere.

In addition, we are delighted to announce progress on other fronts in the month of June:

In this FNN interview recorded at the ASX CEO Sessions, Natalia Obolensky explains the core strengths of the Plukka business model and how the restructuring plan will enhance those strengths and lay the foundation for strong future growth.

On June 1st, Plukka signed an upstream manufacturing partnership with one of the world’s biggest cutters and polishers of diamonds and manufacturers of finished jewelry, Treliss. Leveraging on Treliss’ history of manufacturing jewelry for some of the world’s biggest luxury and premium brands, Plukka can now develop its own-brand products and incubate exclusive designer collections, increasing both margins and exclusivity. Watch the video interview here.

Plukka launched AYA by Chelsy Davy in both London and Hong Kong, giving a global launch platform to the British celebrity designer’s new brand inspired by Africa. Importantly, Plukka was her exclusive online global launch partner and is benefiting from extensive British media coverage about Davy’s jewelry brand. To wit, the Sunday Times just published a major feature about the launch of AYA.