DGSE Companies, Inc. Announces the Retention of Southwest Securities, Inc. to Explore Its Strategic Alternatives to Enhance Shareholder Value

Market Wire, September, 2005

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, operates two consumer pawn operations in Dallas, Texas, and three American Pay Day Centers in New Mexico, today announced that it had retained the Dallas investment banking firm of Southwest Securities, Inc. to explore strategic alternatives to enhance shareholder value, which may include the possible sale of the Company.

“We are pleased to announce that we have engaged Southwest Securities, a member of the New York Stock Exchange, to help us find comprehensive ways to increase our shareholder value,” said William H. Oyster, President and Chief Operating Officer of DGSE Companies, Inc. Mr. Oyster continued, “We believe that our publicly traded securities do not reflect the inherent value of the Company’s activities. The engagement of Southwest Securities will give us an opportunity to professionally examine a range of short-term and long-term possibilities.”

DGSE Companies, Inc. wholesales, retails and auctions fine watches, jewelry, diamonds, precious metal and rare coin products to domestic and international customers through its Dallas Gold and Silver Exchange and Charleston Gold and Diamond Exchange subsidiaries, as well as through the internet. DGSE also owns Fairchild International, Inc., one of the largest vintage watch wholesalers in the country. The Company’s Consumer Finance Division operates two pawn operations in Dallas, Texas, and three American Pay Day Centers in New Mexico. 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® 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.

For further information, please contact: William H. Oyster President and COO of DGSE (800) 527-5307