DGSE Companies, Inc. Announces Record Revenues of $35,639,571 for Fiscal 2005; Net Income for the Fiscal Year Increased 38.3 Percent to $485,212 or $.10 Per Share; EBITDA Increased 21.9 Percent to $.24 Per Share

Business Wire, March 31, 2006

DALLAS -- DGSE Companies, Inc. (Nasdaq:DGSE), which wholesales, retails and auctions fine watches, jewelry, diamonds, precious metal and rare coin products via traditional and Internet channels, today announced operating results for the year ended December 31, 2005.

Earnings

--Basic and diluted earnings per share for Fiscal 2005 were $.10 versus basic and diluted earnings per share of $.07 per share in fiscal 2004. Net Income s increased 38.3 percent to $485,212 from $350,829 in fiscal 2004

--Fourth Quarter 2005 basic and diluted earnings per share were $.03 versus a loss of ($.01) per share in the Fourth Quarter of 2004

Revenues

--Total Revenues for Fiscal 2005 were $35,639,571. This represents a 24.43 percent increase over Fiscal 2004 Total Revenues of $28,642,217.

--Total Revenues for the Fourth Quarter of 2005 were $14,843,535. This represents a 59.2 percent increase over Fourth Quarter 2004 Revenues of $9,318,246.

Performance Metrics & Liquidity

--EBITDA (earnings before interest, taxes, depreciation and amortization) was $1,188,086 in 2005. This represents a 21.9 percent increase over $974,647 in 2004.

--Shareholders equity at year-end 2005 was $6,071,128 or $1.23 per share. This represents an increase of 8.6 percent versus $5,590,586 or $1.14 per share.

"Fiscal 2005 was an important investment year for DGSE," noted William H. Oyster, President and Chief Operating Officer of DGSE Companies, Inc. Mr. Oyster continued, "We invested significant capital in our expanding PayDay business as well as additional significant capital in our new facility in Charleston, South Carolina. While these investments were expensed as they were incurred and thus constrained 2005 results, we expect the benefits of the investments to positively impact results in Fiscal 2006. Additionally, our investment in the expansion of the capabilities USBullionExchange.com has already significantly increased both our precious metals and rare coin businesses. During the Fiscal year, DGSE also increased our portfolio of internet domains to over 500. This valuable portfolio now includes, among others, variations of Gold and Silver Exchange and Gold and Diamond Exchange for every State in the United States as well as a long list of major metropolitan areas. We continue to explore interesting opportunities for expanding our core businesses. Our financial metrics continue to improve with shareholders equity growing, revenues expanding and our revenue sources continuing to diversify. We expect our earnings growth to accelerate in 2006."

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., one of the largest vintage watch wholesalers in the country. In addition to its retail facilities, the Company operates live Internet auctions which can be accessed at www.dgse.com. Real-time price quotations and real-time order execution in precious metals are provided on another DGSE web site at www.USBullionExchange.com. Wholesale customers can access our full vintage watch inventory through the restricted site at www.FairchildWatches.com..

The Company is headquartered in Dallas, Texas and its common stock trades on The Nasdaq Stock Market(R) under the symbol "DGSE".

This press release includes statements which may constitute 'forward-looking" statements, usually containing the words "believe," "estimate," 'project," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. 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. 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. In addition to the results presented in accordance with Generally Accepted Accounting Principles throughout this press release, DGSE has presented non-GAAP financial measures as EBITDA. The Company believes that these non-GAAP measures, viewed in addition to and not in lieu of the Company's reported GAAP results, provide useful information to investors because they are an integral part of the Company's internal evaluation of operating performance. In addition, they are measures that DGSE uses to evaluate management's effectiveness. DGSE's non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies.