This is not the full report see their website or SEDAR.com

TORONTO, April 2 /CNW/ - Harry Winston Diamond Corporation (TSX: HW,

NYSE: HWD) today reported fourth quarter and annual results for the period

ending January 31, 2009. The Company recorded consolidated net earnings of

$70.1 million or $1.15 per share for the year, compared to net earnings of

$106.4 million or $1.82 per share in the prior year. Consolidated net earnings

for the year included a non-cash write-down of the goodwill relating to the

retail operations of $93.8 million or $1.54 per share. The write-down was

partially offset by a $59.1 million net foreign exchange gain or $0.96 per

share, compared to a net $43.4 million foreign exchange loss or $0.74 per

share in the prior year. Consolidated net earnings also included an after-tax

gain on insurance settlement of $9.9 million or $0.16 per share, compared to

$8.0 million or $0.14 per share in the prior year.

Consolidated sales were $609.2 million for the year compared to $679.3

million for the prior year, resulting in a 13% decrease in gross margin and a

24% decrease in consolidated earnings from operations.

The mining segment recorded sales of $328.2 million, a 21% decrease from

$413.8 million in the prior year. The decrease in sales resulted from lower

rough diamond production and lower rough diamond prices in the fourth quarter.

Rough diamond production for the calendar year was down 23% to 3.7 million

carats produced versus 4.8 million for the prior year. Earnings from

operations for the mining segment decreased 24% to $168.6 million compared to

the prior year. The decrease was due primarily to lower sales and to a lesser

degree a decrease in gross margin.

The retail segment recorded a 6% increase in sales to $281.0 million,

with a loss from operations of $2.5 million compared to a loss from operations

of $3.1 million in the prior year. Retail segment SG&A as a percentage of

sales remained consistent with the prior year at 48%.

<<

Fourth Quarter and Fiscal 2009 Financial Highlights

(US$ in millions except Earnings per Share amounts)

------------------------------------...

Three Three Twelve Twelve

months months months months

ended ended ended ended

Jan. 31, Jan. 31, Jan. 31, Jan. 31,

2009 2008 2009 2008

------------------------------------...

Sales 118.4 188.2 609.2 679.3

------------------------------------...

Earnings from operations 10.1 59.1 166.1 217.7

------------------------------------...

Net earnings (loss) (73.0) 90.4 70.1 106.4

------------------------------------...

Earnings (loss) per share $(1.19) $1.55 $1.15 $1.82

------------------------------------...

>>

Robert Gannicott, Chairman and Chief Executive Officer said, "Credit is

the vascular system of the diamond industry. Its rapid decline last October

shocked the diamond supply chain to a sudden standstill that persisted into

this year. Our response, and that of our mine operating partner, Rio Tinto,

has been defensive while preserving the ability to increase production

promptly when conditions have sufficiently improved by reducing capital and

operating costs without jeopardizing the future of our production and sales

platforms. With the successful completion of the Kinross investment, we have

now paid down our mining segment debt.

We now see some tentative recovery in the diamond market, albeit from a

reduced base compared to 6 months ago. Diamonds are underpinned by their

deeply rooted use in bridal ceremonies throughout the world. The Diavik Mine

remains one of the highest margin diamond mines and Harry Winston a premier

diamond brand. We are well positioned for an improvement in global economic

conditions."

Thomas J. O'Neill, President added, "Harry Winston has met the economic

challenges with concentrated marketing and substantial cost reductions. The

premium position of the brand and the international diversity of our business

model support us through the present conditions and position us well for

future economic recovery."

Conference Call and Webcast

Beginning at 9:00AM ET, on Friday, April 3, the company will host a

conference call for analysts, investors and other interested parties.

Listeners may access a live broadcast of the conference call on the company's

investor relations website at http://investor.harrywinston.com or by dialing

800-510-0146 within North America or 617-614-3449 from international locations

and entering passcode 37236627.

An online archive of the broadcast will be available by accessing the

company's investor relations website at http://investor.harrywinston.com. A

telephone replay of the call will be available one hour after the call through

11:00PM ET, April 16, 2009, by dialing 888-286-8010 within North America or

617-801-6888 from international locations and entering passcode 73080790.