<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>4
<FILENAME>dgse8kex991081406.txt
<TEXT>

EXIBIT 99.1
-----------

                 DGSE COMPANIES, INC. ANNOUNCES THAT ITS PRIMARY
              LENDER, TEXAS CAPITAL BANK, HAS INCREASED ITS CREDIT
                             FACILITY TO $4,000,000



DALLAS, Texas ( August 16, 2006) - DGSE Companies,  Inc. (NASDAQ: "DGSE"), which
wholesales,  retails and auctions fine watches,  jewelry,  diamonds and precious
metal and rare coin  products  via  traditional  and  Internet  channels,  today
announced that its primary lender,  Texas Capital Bank, has increased its credit
facility to $4,000,000.

"As we announced last week, our revenues for the first six months of fiscal 2006
increased by 84 percent to $22,267,050  from  $12,546,053 for the same period of
2005 and we expect the balance of 2006 to see further  expansion of our revenues
in all segments of our business."  noted William H. Oyster,  President and Chief
Operating Officer of DGSE Companies,  Inc. Mr. Oyster continued, "The additional
resources provided by our primary lender will give us greater capacity to manage
our growth and produce attractive results for our shareholders."

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.

Texas  Capital  Bank is a  commercial  bank that  delivers  highly  personalized
financial  services to businesses  and private  clients.  With  headquarters  in
Dallas,  the  bank  has  $3  billion  in  assets  as of  year-end  2005.  It has
full-service offices in Austin, Dallas, Fort Worth, Houston and San Antonio. The
bank is the primary subsidiary of Texas Capital Bankshares (NASDAQ:TCBI),  which
is included in the Russell  2000 Index.  For further  information,  please visit
www.texascapitalbank.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




<PAGE>

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.

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




</TEXT>
</DOCUMENT>
