CORRECTING and REPLACING DGSE Companies, Inc. Announces Operating Results for 2008 Fiscal Year

Please replace the release with the following corrected version due to multiple revisions.

The corrected release reads:

DGSE COMPANIES, INC. ANNOUNCES OPERATING RESULTS FOR 2008 FISCAL YEAR

Operating Earnings before Impairment Charge and Discontinued Operations of $3,654,844 versus $1,188,032 for 2007; Revenues $105,219,060 versus $61,469,076

DGSE Companies, Inc. (NYSE Amex: DGC), which wholesales, retails and auctions fine watches, jewelry, diamonds and precious metal and rare coin products via traditional and Internet channels, today announced operating results for fiscal 2008.

Earnings and Revenues

• Operating income before impairment of goodwill and discontinued operations was $3,654,844 (basic and diluted of $.38 per share) for fiscal 2008 versus $1,188,032 ($.16 basic and $.14 diluted) for fiscal 2007.
• During 2008, the Company reflected $8,185,444 of goodwill relating to the acquisition of Superior Galleries. Inc. in May 2007. The Company is required to undertake an annual impairment test at its year end or when there is a triggering event. In addition to the annual impairment review, there were a number of triggering events in the fourth quarter due to the significant operating losses of Superior and the impact of the economic downturn on Superior’s operations and the decline in the Company’s share price resulting in a substantial discount of the market capitalization to tangible net asset value. Our evaluation of the recorded goodwill determined that the goodwill was impaired. Accordingly, to reflect the impairment, the Company recorded a non-cash charge of $8,185,444, which eliminated the value of the goodwill related to Superior.
• Basic and diluted net loss per share for the fiscal year after impairment charges and discontinued operations was ($.81) versus $.10 basic and $.09 diluted in the equivalent period in fiscal 2007. Net Earnings were ($7,851,207) for the fiscal year versus $755,019 for the equivalent 2007 period.
• Basic shares outstanding during the 2008 fiscal were 9,708,045 versus 7,507,579 (basic) for 2007. Fully diluted shares outstanding for 2007 were 8,281,887.
• Total Revenues for the fiscal year were $105,219,060. Revenues for the equivalent period of 2007 were $61,469,076.

Performance Metrics & Liquidity

• EBITDA (earnings before interest, taxes, depreciation and amortization) was $4,139,626 for 2008 ($.42 per basic share) versus $1,435,888 ($.19 per basic share) in the equivalent period of 2007. EBITDA during the 2007 period includes the onetime gain on the sale of real estate in the amount of $577,198.
• Shareholders’ equity at the end of 2008 was $12,595,523 or $1.30 per basic share.

Significant Events and Milestones

• During the Quarter AmericanGoldandSilverExchange.com increased its momentum and processed thousands of new requests for mailing packs for unwanted valuables. Response rates have continued to exceed expectations on all metrics. During the fourth quarter of 2008 AGSE added Federal Express and free insurance as options for customers. Also during the fourth quarter, a Spanish language version of AGSE’s website was launched and a completely remodeled website was introduced;
• Superior Estate Buyers continued to expand its activities visiting 26 cities during the year;
• Superior Precious Metals continued to enhance its productivity during the year with over $10,000,000 in new customer revenue during the period; SPM’s website has added enhanced viewing, charting and account management functionalities and will continue to add content and services throughout 2009;
• Our Euless/Fort Worth operation ( acquired as Euless Gold & Silver Exchange in the first half of 2007) produced over $12,500,000 in revenues for 2008 -- over 4 times the largest single year revenue in its pre-acquisition 20 year history;
• Pawn loan service fees increased 79 percent during 2008 to $548,853 compared to $306,413 during the equivalent period in 2007; merchandise sales increased by 121 percent to $1,584,878;
• During 2008, DGSE operations purchased over $50,000,000 in scrap jewelry, rare coins and bullion products directly from consumers versus approximately $27,000,000 in the equivalent period in 2007; The DGSE Treasure Hunt was launched in the second quarter of 2008 as a component of the DGSE.com website. The Treasure Hunt is a unique venue where customers can purchase jewelry and other items of value at extraordinary values that flow from DGSE’s buying activities. Items that DGSE would normally melt at refineries are imaged, described and offered in real time as they are purchased at slight premiums from their precious metals values. Sell through and margins have been very attractive and the activity will be expanded materially in the coming quarters including the launch of a free standing website; We expect Treasure Hunt to be increasingly attractive to value minded customers who are able to purchase high quality precious metals products at small premiums from the melted content of the item.
• During 2008 DGSE embarked on an ambitious program to remodel and integrate all of its internet activities across eight primary websites and over 900 landing sites. The plan includes creating a portal to all of the activities of the company with materially broadened functionality and efficiency. At the conclusion of the process each segment will have its own website that is seamlessly integrated with each other website. Customers will be able to, through a single front door, purchase any item in auctions or store format, participate in an expanded "Treasure Hunt”, sell valuables, learn more about each company and DGSE, and access extensive research and other content regarding our product lines. The objective is to make DGSE’s internet activities increasingly attractive to consumers as a one stop location for all of their precious metals, rare coins and jewelry needs. This complex project is continuing and is expected to be completed in the first half of 2009. DGSE completed the acquisition of 60 percent of the outside entity currently involved with the redesign of all of its internet presence. This professional technology firm is composed of 15 professionals with high level skills in website design, e-commerce, site optimization and technology infrastructure.
• During the fourth quarter of 2008 in light of adverse market conditions, we made the decision to discontinue the live auction segment of Superior Galleries. Superior will continue to increase its internet presence with online auctions and other direct to consumer activities. This decision will have less than a $2,000,000 affect on Superior’s revenues and will reduce Superior’s operating costs materially. The loss from discontinued operations for 2008 was $1,444,745.
• On February 19, 2009, Stanford International Bank, Ltd.)("SIB”) Superior’s primary lender and a significant stockholder of record of the company was placed in both domestic and Antiguan receiverships. It is uncertain at this time what impact these events will have on Superior. All obligations between Superior are current and there are no intercompany obligations between the companies. DGSE intends to assert claims against SIB in connection with the acquisition of Superior.
• Richard Gozia and Mitch Stoltz, both Directors nominated as independent Directors by SIB tendered their resignations effective immediately. Both resignations were accepted. The Board will now be 5 Directors with the majority remaining independent.
• The Board of Directors’ authorized the repurchase of up to 300,000 shares of the company’s common stock from time to time in the open market.

"Despite the negative effect on reported earnings of the decision to eliminate the Superior related goodwill and to discontinue the live auction segment of Superior, operating results were very strong,” noted William H. Oyster, President and Chief Operating Officer of DGSE Companies, Inc. Mr. Oyster continued, "Revenues exceeded $100 million for the first time in our history and operating earnings were almost $4 million. We are very confident that if we focus on our strengths DGSE will negotiate the difficult current environment and end the year stronger and more successful.”

DGSE Companies, Inc. wholesales retails and auctions jewelry, diamonds, fine watches, and precious metal bullion and rare coins products to domestic and international customers through its Dallas Gold and Silver Exchange, Charleston Gold and Diamond Exchange, Superior Galleries and National Jewelry 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 in Dallas and Euless, Texas, Charleston, South Carolina and Woodland Hills, California, the Company operates live Internet auctions which can be accessed at www.dgse.com and through Superior Galleries' website at www.sgbh.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. DGSE also purchases precious metals, rare coins, watches, diamonds and jewelry through www.Americangoldandsilverexchange.com and over 900 supporting websites. Through www.SuperiorPreciousMetals.com ,we provide precious metals and rare coin investing and trading opportunities all across the United States. The Company also makes collateralized consumer loans at its two Dallas locations.

The Company is headquartered in Dallas, Texas and its common stock trades on NYSE Amex under the symbol "DGC”.

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 such 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.