On March 1, 1999, Pegasus Overseas Limited (POL), a new subsidiary of Lazare Kaplan International Inc. (LKI), announced "an exclusive agreement under which POL will market natural diamonds that have undergone a new GE process that enhances certain characteristics of select, natural gemstone diamonds."

The Gemological Institute of America (GIA) shares the industry’s concern brought about by this announcement, and is calling for immediate information in an effort to provide identification criteria.

"GIA has not been privy to the development of this alleged treatment, and to date has received very little information from the parties involved," reports William E. Boyajian, GIA’s president. "It is usual for GIA to be consulted well in advance by firms involved in gemstone treatments, and I see this situation as no exception. Early consultation is a vital stage of the disclosure process. It enables GIA to fulfill its mission to inform and educate the industry about new developments, and to protect the consumer. Due to such scant information, GIA has yet to discover any conclusive evidence to identify this treatment."

GIA has investigated rumors over the past several years, mainly emanating from Russia, which allude to the possibility of altering the color of gem quality diamonds. Since POL’s announcement, GIA has investigated a small sample of diamonds suspected as having undergone the GE process, and has noted some unusual gemological features in some of the stones that will require further investigation. Based on past research and recent observations, GIA believes it likely that only a small percentage of diamonds, in a narrow category, could potentially respond to the treatment.