REEDS JEWELERS BOARD RESPONDS TO SPARKLE, LLC TENDER OFFER

WILMINGTON, NORTH CAROLINA, MARCH 5, 2004 --- REEDS JEWELERS, INC. (ASE: RJI)
today responded to the Tender Offer from Sparkle, LLC for the outstanding shares
of Reeds Jewelers, Inc. not owned directly or indirectly by Sparkle, LLC.

On January 29, 2004, Sparkle, LLC, a North Carolina limited liability company
made an offer to purchase for cash all the outstanding shares of common stock of
Reeds Jewelers, Inc. not owned by Sparkle, LLC or its subsidiaries at $1.85 per
share.

Sparkle, LLC was formed by members of the Zimmer family, the family which
founded Reeds Jewelers, Inc., for purposes of making the tender offer and taking
Reeds Jewelers, Inc. private or removing the shares from the public trading
market.

Since certain members of Sparkle, LLC are also members of the Board of Directors
of Reeds Jewelers, Inc., Reeds' Board of Directors asked the independent members
of the Board of Directors of Reeds Jewelers, Inc. to consider and respond
regarding the Sparkle, LLC tender offer.

The independent members of the Board of Directors of Reeds Jewelers, Inc. made
its informed and unanimous response to Reeds Jewelers, Inc., which the Reeds'
Board unanimously adopted as follows:

        THE BOARD OF DIRECTORS OF REEDS JEWELERS, INC. HAS DETERMINED THAT IT
        WILL TAKE NO POSITION ON THE TERMS OF THE TENDER OFFER MADE BY SPARKLE,
        LLC TO PURCHASE ALL OF THE SHARES OF REEDS JEWELERS, INC. NOT OWNED
        DIRECTLY OR INDIRECTLY BY SPARKLE, LLC.

The Board of Directors of Reeds Jewelers, Inc. is taking "no position" regarding
the tender offer for the following reasons: (1) the independent directors had
determined to take "no position" regarding the Tender Offer; (2) the position of
the independent directors should be the position of the Reeds' Board of
Directors; and (3) no independent investment analysis on behalf of Reeds was
performed. The Board is aware, however, that with the passage of the
Sarbanes-Oxley Act of 2002, the costs in terms of expense and management time of
maintaining the status of Reeds as a public company have significantly
increased. In addition, the Board is aware that the shares are thinly traded and
that the continued listing on the American Stock Exchange is in question due, in
part, to the low price per share at which the stock has traded. The
determination by the Board to take "no position" means that the shareholders
should consider these factors, among other matters, in deciding whether to
tender Shares in response to the Offer.

This release includes certain forward-looking information that is based on
assumptions made by management and data currently available to management. This
information which has been, or in the future may be, included in reliance on the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995, is subject to a number of risks and uncertainties, including but not
limited to the factors identified in the Company's 10-K and other documents
filed with the Securities and Exchange Commission. Actual results may differ
materially from those anticipated in such forward-looking statements. The
Company undertakes no obligation to update or revise any forward-looking
statements to reflect subsequent events or circumstances even if experience or
future changes make it clear that any projected results expressed or implied
therein may not be realized.