ITEM 2 — GENERAL DEVELOPMENT OF THE BUSINESS

Aber Diamond Corporation is a specialist diamond company with assets in the
mining and retail segments of the diamond industry.

Aber's interest in the mining segment consists of a 40% joint venture interest
in the Diavik Diamond Mine ("Diavik" or "Diavik Mine" or the "Joint Venture")
located off of Canada's Lac de Gras in the Northwest Territories. Under the
Joint Venture Agreement with Diavik Diamond Mines Inc. (the "Operator" or
"DDMI"), the 60% joint venture partner and wholly owned subsidiary of Rio
Tinto Plc,. Aber pays 40% of the project operating and capital costs and
receives 40% of diamond production. Aber markets a substantial part of its share
of diamonds to the global market through its rough diamond marketing arm, Aber
International N.V., based in Antwerp, Belgium.

Aber's participation in the retail segment of the diamond pipeline is by means
of its 51% controlling interest in Harry Winston, Inc.  ... More..."http://secfilings.nasdaq.com/edgar_conv_html%2f2005%2f04%2f28%2f0001047469-05-011705.html#FIS_BUSINESS"