Press release

Swatch Group: 1st half 2002 results

Biel-Bienne, 21 August 2002

Performance of The Swatch Group in a difficult environment

Key figures for the Group as a whole

Conversion to IAS
The figures published for the first half of 2001, which were based on Swiss GAAP FER, have been converted to IAS, as was already the case for the annual financial statements for 2001. Changes in the operating result are explained primarily by the IAS requirement for capitalization and annual depreciation of goodwill on acquisitions, as well as expenditure for pension fund contributions. The effects of treasury shares and unrealized gains and losses on securities are not included in the Group result but are recognized in shareholders’ equity.

Notes on the 1st half of 2002 and prospects for 2002 as a whole

In the Group’s core business area, the 18 brands of the watch division, growth of +1.1 % was achieved in local currency terms, despite the difficult environment. The continuously rising value of the Swiss franc against all other currencies more than offset this positive effect (currency effect at Group level: approx. 70 million, equivalent to 3.4% of sales). In the component sector, optimization of production and costs enabled the operating margin to be improved significantly.
The sustained pressure on prices and worldwide overcapacities, especially in the telecom sector and also for automobile components, had a negative impact on the electronic systems segment.
The Group has a particularly strong industrial base – the strongest in its field of business – and clearly positioned brands in all price segments backed by a particularly efficient global distribution network.
Particular attention will be given to even more intensive new product launches in the second half of the year, reflecting the Group’s ongoing innovative capability and leading to further progress in these months in which sales are traditionally at their highest.
However, reliable predictions until the end of the year are difficult due to uncertainty on the currency front and due to the impact on consumer sentiments of an environment influenced by economic and political factors, apart from the financial market and the media. The Group’s mid to long-term objectives will be maintained despite the possibility of short-term fluctuations caused by external influences.
Despite a difficult situation on the financial markets and its consequences for the world economy, the Swatch Group remains very confident for the rest of the year 2002.
Group Management reiterates its commitment of keeping the ongoing and long-term corporate strategy of our rock-solid Group on course for growth, despite all the turbulences on the stock markets; the enormous assets and potentials of the Group will be further safeguarded and strategically advanced through active, cost-conscious and entrepreneurial action.

Watches

Sales in this segment grew by +1.1% in local currency terms. The biggest share of the negative currency influences affecting the Group concerned the watch sector (approx. – 4,5 %).
Within the individual watch segments, all areas reported a slightly positive trend in local currency terms. This shows once again that broad diversification within the watch segment, especially in a difficult market environment, is the right strategy.
In regional terms – with very few exceptions – all countries reported slight growth; however, this was for the most part neutralized by consolidation of the accounts in Swiss francs. We expect this trend to continue for the whole year, expecially for the non-touristic areas.
Market conditions for watch sales remain difficult in the tourist centers. Contributory factors are the reluctance to travel and economic uncertainty. However, we are able to report that performance of the Group’s own retail stores contrasts favourably with this trend.
Demand for high-price watches in the top luxury category remains sustained and despite investments in new manufacturing plant and personnel, intensive use is still being made of our capacities.
Clear progress is apparent in the Group’s retail business. The Group is continuing its expansion in this area. Despite the difficulty in finding satisfactory first-class locations, a Blancpain store was opened in Paris, and the former Columna stores in Basel and Lugano were converted to the Tourbillon concept. A new Breguet store is available to customers on Bond Street in London in August as well as a Tourbillon store in Lausanne. Furthermore, an Omega boutique in Bangkok and Milan will shortly be inaugurated.
The expansion of the jewellery collection at Breguet, Léon Hatot, Omega and Swatch is proceeding as planned and with success.
Recently, there has been a tendency for the retail trade to operate with lower inventories. However, this will have a positive impact on the Group towards the end of the year.

Horological production

Strong and sustained demand enabled sales of mechanical movements and components to be increased. This in turn had a positive impact on capacity utilization and on the profitability of the Group member companies concerned.
For example, the watch hand manufacturer Universo was restored to profitability through operational measures and higher production.
However, optimization of inventories within the Group and a slight downturn in orders from third party customers for Swiss Made movements in the medium price category counteracted this positive trend.
In the low price sector of movements made and marketed in the Far East, continuing price pressure was observed with an adverse effect on margins. Conversion of sales achieved in Asia into Swiss franc terms also had a negative effect on the sales trend.
The increased profitability of this segment and the effect of the cost optimization measures taken enable the Group to look forward confidently to the rest of the year, all the more that orders and turnover increase significantly in the second part of the year.

Electronic systems

The Group member companies in the technology sector have not emerged unscathed from the difficult environment prevailing in this field. Declining orders and, above all, pressure on prices were the two factors which had a negative impact on sales and profitability.
Unlike the situation in the watch segment, the sales trends of companies operating in the technology business differ widely. Telecom equipment suppliers were more seriously affected by the tough market conditions than the other companies.
Despite these conditions, a double-digit operating margin (16.3 %) was again reported in the first half of 2002. This is mainly attributable to the gain of market shares as well as the position of certain companies as niche market suppliers and to the ongoing adjustment of costs to the changed market conditions.
Group Management tends to expect a modest recovery in this segment, as overcapacities continue to exist and further, although slightly weaker, pressure must be expected on the price front.
Further efforts have been put in hand on the cost side and will bring their first successful outcomes in the second half of the year.

Consolidated Semi-Annual Financial Statements

CONDENSED INCOME STATEMENT (unaudited)

Net financial result
The net financial result at the end of June 2002 comprises essentially the net result of foreign currency operations.

Bonds
No bonds were issued during the period January to June 2002. In regard to the last bond issued by the Group, 97 bonds representing 22'310 shares were converted in 2002.

Treasury shares
A net total of 32 682 registered treasury shares were sold during the first six months of 2002.

Dividend
The company pays only one dividend per fiscal year. For the year ended 2001, the following dividend was paid on 13 June 2002, according to a decision of the Annual General Meeting held on 7 June 2002:
Dividend per registered share CHF 0.20
Dividend per bearer share CHF 1.00
Representing a total of mio CHF 58.4

Post balance sheet events
The disastrous flooding in Germany also affected our company Glashütter Uhrenbetriebe GmbH. According to our most recent information, the company escaped relatively unscathed from the disaster. The company resumed operations on 19 August 2002. All damages, as well as the results of the production interruption, are fully covered by insurance.

CONTACTS
Edgar Geiser, CFO, et Thomas Dürr, Corporate Treasurer
The Swatch Group Ltd, Bienne
Tél. +41 32 343 68 11, fax +41 32 343 69 16
Courriel investor.relations@swatchgroup.com

Béatrice Howald, PR & Press Office
The Swatch Group Ltd, Bienne
Tél. +41 32 343 68 33, fax +41 32 343 69 22
Courriel press@swatchgroup.com

Press release
April 2002

Swatch Group acquires dial producer Rubattel & Weyermann

Biel/Bienne and La Chaux-de-Fonds (Switzerland), April 23, 2002

The Swatch Group Ltd. acquired today 100% of the shares of the watch dial manufacturer Rubattel & Weyermann in La Chaux-de-Fonds (Switzerland) from the owner, Mr. Michel Theurillat. Mr. Theurillat will remain head of the profitable company which employs some 80 persons, thus ensuring the supply to all their present clients of the upper price segment within and outside the Swatch Group.
The considerable know-how that Rubattel & Weyermann, founded in 1890, acquired during more than a century in the manufacturing of prestigious watch dials will adequately complement the upper segment of the Swatch Group production sector.

Contact: Béatrice Howald,
PR & Press Office Swatch Group Ltd., Biel/Bienne
Phone +41 32 343 68 33, Fax +41 32 343 69 22
E-Mail: press@swatchgroup.com

Press release

Swatch Group:

Operating income and net income for 2001 slightly under the record level achieved in 2000

Biel-Bienne, March 21, 2002 – Following the turnover figures published on February 5, 2002, key data for the Group result can now be presented as follows:

OVERVIEW OF THE GROUP AS A WHOLE.

CONVERSION TO IAS
In order to follow the developments in stock exchange legislation, we have already been working for some time, in close collaboration with our auditors, on converting the presentation of our financial statements from Swiss GAAP (FER) to IAS. This conversion has made it imperative to restate the financial statements for 2000. This resulted in the following changes in the presentation of the previous year’s results:

The changes in operating income stem principally from the capitalization and annual amortization of goodwill linked to acquisitions, as required under IAS, as well as book entries in connection with pension fund contributions. As far as concerns net income, according to IAS profit on own shares is no longer included but is entirely neutralized via the Group’s equity, and the financial income from other investments has also been restated in line with these new standards.

The changes in the balance sheet for the Group, as required under the new standards, will be explained in detail in the Annual Report.

DISTRIBUTION OF PROFITS

At its meeting on March 20, 2002, the Board of Directors decided to propose a dividend of 45 % at the Annual General Meeting of shareholders to be held on June 7, 2002.
In the previous year, a nominal value repayment was made which has to be considered as exceptional both in its form and in its extent.

THE GROUP AS A WHOLE
Despite the well-known unfavorable circumstances and events of 2001, the Group succeeded in raising turnover in local currency by 0.7%. Taking into account the negative influence of exchange rates, there was a slight drop of - 1.9% to CHF 4,182 million. EBIT (earnings before interest and taxes), after depreciation and amortization, amounted to CHF 644 million, which was -5.7% below the record figure achieved the previous year (CHF 683 million according to IAS). The net income, which reached CHF 504 million, was also slightly below (-7.7%) the figure for the previous year (CHF 546 million according to IAS).

After the nominal value repayment of CHF 172 million and the repurchase on the second line of own shares with a total value of CHF 195 million in the previous year, equity remained at a respectable level of 70.0% of the balance sheet total.

WATCHES

The brands managed to maintain their position and increased their market share against a difficult trading environment which was aggravated in the second half of the year. Through firm control on expenses and despite certain advance efforts to expand the brands’ presence in the retail market, operating income slightly increased. In this respect, the continual strengthening of our position in the top luxury and prestige segment, as well as in the middle segment, played an important role. In the basic segment, major expansion projects to strengthen brand presence involving retail outlets in key markets necessitated preliminary investment which should bear fruit in the coming years.

PRODUCTION OF WATCHES, MOVEMENTS AND COMPONENTS

The increase in turnover, in particular in relation to more expensive mechanical movements and their components, combined with improved profitability for these products, was more than compensated by the efforts made by the Swatch Group brands to reduce their inventories. The pressure on movements produced and sold in the Far East, which was felt in particular in the second half of the year, combined with certain adjustments in the production of components (mainly hands and cases) resulted in below-average growth in operational profitability. Measures have been introduced to eliminate the weaknesses that have arisen and the situation should improve in the course of the current year.

ELECTRONIC SYSTEMS

In this field, the marked weakening of the mobile telephone sector, especially in the second half of the year, had a particularly noticeable effect. A reduced work-load and a certain pressure on prices led to a drop in operating margins in particular at Micro Crystal and Oscilloquartz, where turnover fell by -27% and -16% respectively. With turnover levels more or less equal to those achieved in the previous year, EM Marin also suffered a fall in operating margin as a result of product mix and price concessions. Lasag succeeded in raising turnover and income over the previous year’s figure, while at Renata turnover fell slightly, but operational income could be somewhat improved.

PROSPECTS FOR THE FUTURE
The Group’s Executive Management is looking towards the future with cautious optimism. After a moderate start in the first quarter of 2002, turnover is expected to exceed the previous year’s level. The Swatch Group will deploy all available resources in order to implement its strategic plans. This includes targeted expansion in the top prestige and luxury segment with new products and marketing concepts, as well as gradually including distribution in our wholesale structure in markets still covered by third party agents. This concerns the expansion of the Breguet brand, as well as the international expansion of Glashütte, Jaquet Droz and Léon Hatot. At strategic locations, a few additional well targeted own points of sales are planned. Following initial positive experiences in the jewelry sector, this area will be expanded selectively.
The other brands are also planning the launch of new products this year, some of which will create a new impetus at the coming Watch and Jewelry Fair in Basel.
As far as concerns production, every effort will be made to increase production capacity for mechanical movements and specialties. Furthermore, the corrective measures taken at certain component manufacturers should produce the first positive results.
The electronic sector will depend very much on further development of turnover and prices in various markets such as mobile telephone sector, the automobile industry etc. In this respect we also expecting the situation to improve, at the latest during the second half of the year.
Despite the current difficult and uncertain economic environment, the Swatch Group’s solid position will enable it to gain market shares and to take advantage of an economic recovery of which first signs seem to appear in some areas.

Contacts
Edgar Geiser, CFO and Thomas Dürr, Corporate Treasurer
The Swatch Group SA, Biel-Bienne
Tel: +41 32 343 61 11, Fax: +41 32 343 69 16
E-mail: investor.relations@swatchgroup.com

Béatrice Howald, PR & Press Office
The Swatch Group Ltd, Biel-Bienne
Tel: +41 32 343 88 33, Fax: +41 32 343 69 22
E-mail: press@swatchgroup.com

Press release
February 2002

Swatch Group – Turnover for 2001 at high level established in the previous year – expected operating income and net income slightly under record results of previous year

Biel/Bienne, February 5, 2002
Despite difficult economic and political conditions, the Swatch Group Ltd achieved a modest rate of organic growth of 0.7 % in local currency in 2001.

This performance is all the more remarkable since, on the one hand, the comparable period in 2000 closed with record results in all sectors and, on the other, no effect of new acquisitions is included. The sale respectively the phasing out of a number of product groups, such as components for the medical sector and measuring instruments of the Cary Division at Nivarox-FAR, components for the automobile industry at Universo-Plastik and other products, diminished the turnover by over CHF 20 million compared to the previous year.

The year 2001 also presented our Group with some major challenges. Consumer sentiment became clearly more reluctant, especially in the USA, after the marked weakening of financial markets since spring, the terrorist attacks and other worldwide as well as local unrest. Turnover for the most important last 4 months of the year turned out to be below our expectations.

In the sector of Electronic Systems, owing to a drop in orders from the mobile telephone industry, Micro Crystal’s turnover was reduced by approx. -27 %, the one at Oscilloquartz reduced by -16 %, thus resulting in a fall in turnover of -9.8 % in this sector.

Thanks to the solid basis of the Group, with its 18 brands covering all price categories and its geographical diversification combined with a strong distribution network, it was nevertheless possible to achieve a slight growth in local currency for the entire Group. A major contribution in this respect was made by the strong trend in the luxury segment and the associated manufacturing activities.

The recovery of the Swiss franc, especially against the Euro and the Yen as well as a number of other currencies, reduced the Group’s turnover in Swiss Francs by -2.6 %. Taking into account this effect, turnover fell by -1.9 % below the figure for the previous year.

Watches

With the newly-integrated brands Breguet, Léon Hatot, Jaquet Droz and Glashütte-Original, each of them with a rich tradition, the Group has set up an excellent starting base over the last two years, which together with Omega and Blancpain, will enable it to develop into one of the most important manufacturers in the top-end luxury and prestige segment. With the support of our strong manufacturing base, the Group has been able to develop and sell masterpieces of the most outstanding watchmaking craftsmanship. With the inauguration of three further Breguet stores in Cannes, New York and Vienna, two new boutiques each for Blancpain and Omega in Cannes and Paris, a Glashütte sales outlet in Frankfurt, plus the first multi-brand top-range store in Paris under the name of “Tourbillon” at the end of 2001, the foundations for a growing brand and market presence were built.

The fruits of last year’s expansion program, which included the highly successful launch of a jewelry range under the Breguet, Léon Hatot and Omega brand names, should be seen in particular in the coming years.

While Breguet enjoyed an excellent growth rate during the past year, at Omega, for example, a large proportion of growth in local currency in European markets was almost equalled by a slump in particular in business in the USA. Longines too achieved a solid growth rate, while Rado’s result was slightly negative last year. The other brands in the luxury segment have considerable development potential, but during 2001 they did not yet make a notable contribution to the results of the Group as a whole.

In the medium-price segment it was in particular Tissot which achieved strong growth. The difficulties in the delivery capacities of new products (i.e. T-Touch) have largely been overcome in the meantime.

The segment of the basic range was characterized by a further drop in private-label business. At Swatch, the planned reduction in supply of telecommunications products and a certain degree of tightening up of distribution structures was particularly noticeable in the USA, while turnover in Swatch’s own stores showed notable growth compared to the previous year. Toward the end of the year, turnover generated through the e-commerce platform in the USA showed a remarkable rise. Turnover in 2000 connected with the Olympic Games in Sydney was not forthcoming in 2001. In the future, this should be compensated for through increased market presence and authentic products in connection with the 2004 Olympic Games in Athens and the 2008 Games which will be held in China. It is well-known that the Swatch Group has signed an exclusive contract with the Olympic Committee according to which the Group will be responsible for timing and data-processing for the next 10 years.

The production of watches, movements and components

The trend in turnover in this sector was characterized by a rise in demand for mechanical movements in all price categories. Our manufacturers of movement components were also able to take advantage of this development. The efforts made to further optimize stocks of our own brands resulted in a drop in internal supplies, while deliveries to third parties increased by +5.5 %.

While order books at manufacturers of higher price-range movements remained at a high level, a certain reluctance in placing orders for traditional, electronic, Swiss-made movements was witnessed among our Swiss customers toward the end of the year.
As for the basic range of movements produced and sold in the Far East, increased pressure on prices was felt, especially in the second half of the year, which reduced sales revenues.
On the other hand, the expansion of sales of micromechanical components produced by Microcomponents, in particular for the automobile industry, progressed well.

Electronic systems

In this sector, the drop in demand from the mobile telephone industry was particularly noticeable in the second half of the year. This affected in particular the activities of Micro Crystal, whose turnover fell by approximately -27 %. As a manufacturer of frequency stabilizers for major telecommunications companies, Oscilloquartz saw a decrease in turnover of -16 % and felt the effects of the reduced or delayed investment from partly state-owned companies. On the other hand, a satisfactory rise in turnover was achieved at Lasag with its market-oriented laser systems. The chip manufacturer EM Marin managed to maintain turnover more or less at the previous year’s level. At Renata there was a small rise in the volume while turnover fell slightly.

Expected profit for 2001

Although the final results are not yet available and have as yet not been checked and approved by the auditors and the Board of Directors, the following reserved remarks can be made at the present time.

As far as concerns operating profit, 2001 saw a slight drop, well under 10 % in comparison with the record result achieved the previous year. In order to follow developments in stock exchange legislation, the Swatch Group has been making the necessary preparations for some time now to change its accounting system from FER (SWISS GAAP) to IAS norms. This move will make it easier to compare the Group with its competitors in the luxury segment. At the same time it is imperative that the results for 2000 be revised in collaboration with our external auditors.
There are no major differences between the restatement of the operating result for 2000 compared with the original published result. The difference here is well under –5 %. With the application of IAS norms, the Group’s net income for 2000 is reduced by approximately -15 %, mainly stemming from non-realized gains on securities.
The revised figures for the year 2000 will be published in March before the final figures for 2001 are announced; details and comments will be available in due time.

According to figures obtained so far on a comparable basis, a slight drop in the operating result is to be expected for 2001, which will however be clearly under 10 %. This drop will be very slightly increased to somewhat above -10 % in the net result for the Group, taking into account the impact of movements in the financial markets. Overall, the final figures for 2001 should be in line with the average market estimates.

Contacts
Edgar Geiser, CFO and Thomas Dürr, Corporate Treasurer
The Swatch Group SA, Biel-Bienne
Tel: +41 32 343 61 11, Fax: +41 32 343 69 16
E-mail: investor.relations@swatchgroup.com

Béatrice Howald, PR & Press Office
The Swatch Group Ltd, Biel-Bienne
Tel: +41 32 343 88 33, Fax: +41 32 343 69 22
E-mail: press@swatchgroup.com

Press release

January 2002

ETA SWISSL@B

Superior and exciting software tool for everyone within the watch trade.

ETA SA have developed a way to deliver communication on special calibers, especially the more complex movements. This tool in the shape of a CD-ROM is based on the e-learning technology (Computer assisted training). The target groups are skilled watchmakers, service centres, instructors, watch making schools etc. on a world-wide scale. In a simple and interactive way the material itself describes: how to carry out service, doing adjustments and how to use the individual movement.

STRUCTURE
Each CD-ROM contains the complete programme for a specific caliber. In this introduction the caliber Mecaline 131/4... ETA 7750 is used. The CD-ROM is divided in 3 modules:

1. After Sales Service containing:
- Disassembling
- Assembling
- Start/Stop/Reset (description of the functions)
- Adjustment (how to adjust the functions)
- Tools (description of available special-tools)
- Oiling guide / oil types

2. How to use
- Dial and hands (the various dials and hands)
- Functions (all functions of the chronograph can be tried using the push-buttons and the effect is shown in an animated view on screen).

3. Documents ?
- 3 seperate documents can easily be printed out and used as instructors material, technical documentation and guide for the customer in the shop. The 3 documents are Disassembling, Assembling and How to use. The documents are in Adobe Acrobat Reader (PDF) format (also included on the CD-ROM).
- For an instructor or teacher preparation for a seminar is made easier; the material is just printed out in the needed numbers and in one of the 6 languages below. The documents can also be printed out at the seminar location, thus eliminating the need to carry a lot of paper when travelling. Of course this requires availability of a laser printer in an acceptable quality.

LANGUAGES
The CD-ROM is developed in different languages that may be selected in the main system window. The following languages is available: English, French, German, Spanish, Danish, and Italian.

PERSONAL UPDATING
The CD-ROM gives you the possibility to update your knowledge, as well as serving as a step-by-step walktrough on the complete movement.

PEDAGOGICAL STRUCTURE
The system structure is build in a fashion that presents the movement in a pedagogical way. By combining a computer and a laser beamer a walktrough and instructions can be shown on a large screen for a larger audience. For workshops with several employees a short, internal seminar can easily be held. The only thing required is an ordinary computer with a CD-ROM drive. No additional software is needed.

FUTURE PERSPECTIVE
The future requires better service and well?trained watchmakers to the advantage of the customer in the shop. It is maybe not always easy to leave the workshop to join a seminar. The ETA SWISSL@B system helps the individual workshop in ensuring a motivated staff with updated knowledge and a high degree of skills.

Please order the CD-ROM from:

ETA SA Fabriques d'Ebauches
Ausbilclungszentrum
Bahnhofstrasse 9
CH-2540 Grenchen Schweiz
Tel.: +41 (0)32 655 27 72
Fax: +41 (0)32 655 71 74
E-Mail: etaformation@eta.ch
Internet: www.eta.ch

Press release

21 September 2001

Swatch Group - Share Repurchase Program

As part of the successfully launched share repurchasing program, The Swatch Group Ltd has repurchased, since September 24, 2001, 3,758,673 registered shares with a nominal par value of CHF 0.45 and 757,550 bearer shares with a nominal par value of CHF 2.25 for close to CHF 200 million on the second trading line, representing 2.42% of the announced 4.48% of the share capital.
At the next General Meeting of The Swatch Group Ltd, a proposal will be put forward to destroy the shares repurchased through the second trading line.
The current situation offers The Swatch Group Ltd new opportunities for further strengthening and expanding its already strong market position in a broad range of fields.
In order to maintain the necessary freedom of action, the share repurchasing program has been put on hold for the moment. As part of a dynamic and flexible management of our balance sheet, it is planned to continue it at a later stage.

Business during the period January to October 2001

Expected annual result By the end of the first ten months of the year, the Group had realized slight organic growth, despite a slight fall in turnover in the electronic systems segment and a negative impact of foreign exchange of between 2.5 and 3.0%.
According to current estimates, the important Christmas sales should be at least equal to if not slightly higher than the figures for last year.

Contacts
Edgar Geiser, CFO and Thomas Dürr, Corporate Treasurer Swatch Group, Biel-Bienne
Tel: +41 32 343 61 11, Fax: +41 32 343 69 16
E-mail: investor.relations@swatchgroup.com

Watches at auction: Patek Philippe continues to break world records in auction bids for its precious timepieces.

Patek Philippe
Geneva October 2001

Following exceptionally strong results at auctions during the last few years, Patek Philippe has continued to attract impressive bids during the 2000-2001 sales, crossing the million-dollar threshold on two occasions. The collector community's interest in the Geneva watch brand is greater than ever, particularly for complicated wristwatches, because they are rare and unique timepieces of utmost quality.

In 1999, the world listened with awe when a 1923 round Calatrava men's watch with a split-seconds chronograph fetched the incredible price of US$ 1,918,387 at an auction. This rare 18K yellow gold timepiece established a new global record for a wristwatch. In December of the same year, the famous super-complicated pocket watch which had belonged to Henry Graves changed hands for more than 11 million dollars. These extraordinary results clearly confirm the increasing interest of collectors in pocket watches and rare timepieces made by Patek Philippe.

Patek Philippe remains the blue-chip index of the market
The 2000-2001 auction seasons were marked by a considerable number of impressive bids for high-quality watches and eager competition among passionate bidders. For many timepieces, the hammer prices achieved at these auctions set a new world record for the respective models.
The interest of collectors in the Patek Philippe brand is constantly growing. Wristwatches are the most coveted collectibles, but the demand for pocket watches is picking up again as well. Watches of distinctive design as well as timepieces from the company's current collections also seem to be attracting greater attention among bidders. This buoyant auction market for watches has recently witnessed the arrival of an entirely new generation of high-net worth collectors, most of them from the United States.

Third all-time world record for a wristwatch
In its 1932 original version, the Calatrava is Patek Philippe's basic current collection model. Thanks to its timeless character and numerous versions, this model continues to appeal to collectors and watch enthusiasts. A unique complicated version of this famous model made in 1941, with triple date apertures and in rose gold, was sold for US$ 1,169,550 by Antiquorum inGeneva on November 19, 2000. Today, this bid is the third highest price ever paid at an auction for a wristwatch.

Four other timepieces fetched in excess of US$ 800,000
A World Time wristwatch in rose gold, featuring a blue translucent enamel dial and manufactured in 1953, was sold for US$ 1,050,750. A cushion-shaped wristwatch with minute repeater, in yellow gold and platinum, dating back to 1925, was sold for US$ 858,250. This timepiece had belonged to Ralph R. Teetor, the famous blind mechanical-engineer who invented cruise control. A wristwatch in yellow gold with a split-seconds chronograph - an extra large and unique piece with a black dial made in 1952 - was acquired for US$ 820,660. Finally, a steel wristwatch chronograph with a perpetual calendar, manufactured in 1948, fetched a price of US$ 814,490.

Watches of distinctive design
Whether tonneau, square or rectangular, specially shaped wristwatches are now attracting greater attention and enthusiasm among collectors. For example, a rose gold wristwatch dating back to 1958 was sold for CHF 152,000 (approx. US$ 84'920). This 1950s creation, featuring very structured contours, had already reached a record price in 1999. Another form wristwatch, also in rose gold and dating from 1954, was acquired for CHF 109,100 (approx. US$ 60'950). This is an impressive first bid for this very rare watch with a pronounced dome shape.

Renewed interest in pocket watches and special pieces
The record bid of over 11 million dollars in New York on December 2, 1999, for the Henry Graves Super Complication most certainly revived the market for Patek Philippe pocket watches. A number of surprising sales illustrate this point: a travel clock in golden bronze featuring a detent-spring escapement, small strike and alarm clock sold for CHF 86,000 (approx. US$ 48'860); a pocket watch with a hunter case, minute repeater and split-seconds chronograph sold for CHF 68,625 (approx. US$ 38'125); another hunter-case pocket watch featuring a minute repeater with pushbutton and case entirely decorated with champlevé polychrome enamel in purest Art Nouveau style sold for CHF 207,750 (approx. US$ 118'420); and finally a Chronometro Gondolo pocket watch, featuring an engraved caseback decorated with the scene "St. George slaying the dragon" sold for CHF 43,700 (approx. US$ 24'830).

Unique watches of ever-increasing value
Auction sales have regularly substantiated that Patek Philippe timepieces maintain their value over time and even appreciate to unprecedented levels. This is a strong testimony of collectors' unfailing confidence in the production of a company widely regarded as the market leader. The value of some Patek Philippe timepieces that are more than 20 years old can rise to levels far beyond the original retail price, particularly in the case of rare, complicated or limited-edition pieces.

Collectors' criteria: rarity, quality, authenticity and variety in style
Rarity, the collector's principal criterion, is ensured by Patek Philippe's low production volume and small series ranging from one to several hundred pieces per model. In more than 160 years of uninterrupted production, Patek Philippe has produced less than 1% of the total current annual production output of the entire Swiss watch industry.
The recognized quality of Patek Philippe watches is the second factor sustaining its blue-chip status at auction sales. Patek Philippe has always designed and built its watches to function indefinitely, and its quality standards of workmanship have remained consistently high. The Geneva Seal, the highest official quality distinction in traditional watchmaking, is awarded to all mechanical movements produced by the company.
Patek Philippe can guarantee the restoration of all timepieces ever crafted in its workshops since the company was founded in 1839. For instance, the service department has the ability to reproduce a 19th century gear wheel using the original tools from the respective era. Since the craftsmanship and skills of Patek Philippe are handed down from generation to generation, the Geneva watchmakers can service and overhaul even the oldest timepieces without jeopardizing their integrity. For watches that are 40 or 50 years old, they will use original spare parts whenever possible, thus preserving the authenticity of the timepieces - a highly decisive aspect for most collectors.
Additionally, Patek Philippe maintains detailed records on all its timepieces since 1839. The company's books list all the serial numbers that are engraved on the movements and in the cases of each watch. All inspections and repairs performed by the Geneva workshops are painstakingly documented. Thus, these books are the company's memory, so to speak, providing evidence of the authenticity of its products. The records also contain complementary data that allows owners of Patek Philippe timepieces to peruse the history of their rare and treasured collectibles.
Apart from limited annual production, the rarity of Patek Philippe timepieces is also a consequence of the diversity of models and styles. Collectors can easily find watches which correspond to their individual tastes and preferences or timepieces that reflect different periods, styles or horological techniques. Patek Philippe designs are often avant-garde, but their unique elegance stands firm through changing fashions.

Illustrious examples of record bids of recent years for Patek Philippe timepieces at major auctions

For further information, please contact:

Ms. Jasmina Steele International Public Relations Director
Patek Philippe Geneva P.O. Box 2654 1211 Geneva 2
Tel.: +41 22 884 20 20 Fax: +41 22 884 20 40

or visit us on the Internet at: http://www.patek.com Click on "Communications" and then on "Press and PR Information".

Press release

21 September 2001

Swatch Group - Share Repurchase Program / Reduction of Capital

Biel, September 21, 2001.

Repurchasing of own shares to reduce its share capital - Second trading line on virt-x commencing September 24, 2001.

In 1998, the Swatch Group announced a program to repurchase shares amounting to 10 percent of its share capital for the purpose of capital reduction. Since then, 5.78 percent of the shares outstanding at that time was bought back and was nullified according to the resolution of the respective General Assembly. At that time, the board of directors reserved the right to halt or reinstate the program at any time.

Plans are now underway to continue with the program commencing on September 24, 2001 and to initially buy back the remaining 4.22 % of the share capital. This corresponds to 4.48% of the current equity capital. A corresponding capital reduction, in the amount of the repurchase, will be submitted by the Board of Directors to the ordinary General Meeting of Shareholders 2002. Whether or not to proceed with a further share buyback program will be decided at a later date.

Through the planned capital reduction, Swatch reinforces its intention to actively manage its equity capital basis and to optimize its capital structure. The share repurchase program will positively affect both the return on equity and the earnings per share. Sufficient leeway will remain to successfully continue with the Group's long-term strategy, such as the expansion program for the retail activity and the expansion and modernization within the production sector.

The share buyback offer applies to both the bearer shares with a nominal value of CHF 2.25 each and to the registered shares with a nominal value of CHF 0.45 each. The repurchase will take place exclusively on the virt-x on second trading lines established solely for this purpose (for the bearer and registered shares). The repurchase price on these second trading lines, where only Swatch Group may purchase shares, will be based on the price of Swatch registered and bearer shares traded on the principal line of trading. Shareholders can therefore either sell Swatch shares by means of normal trading, or make the shares available to Swatch in the second line of trading for the purpose of the subsequent capital reduction. The second trading line on the virt-x will be opened on September 24, 2001.

Taxation Aspects
The Swiss federal withholding tax will be applied to the sale of shares via the second line at a rate of 35% on the difference between the repurchase price of the Swatch registered or bearer shares and their nominal value. We recommend that all shareholders interested in this program obtain appropriate individual advice regarding tax implications.

Contacts
Edgar Geiser, CFO and Thomas Dürr, Corporate Treasurer Swatch Group, Biel-Bienne
Tel: +41 32 343 61 11, Fax: +41 32 343 69 16
E-mail: investor.relations@swatchgroup.com

Beatrice Howald, Swatch Group Press Office
Tel: +41 32 343 88 33, Fax: +41 32 343 69 22
E-mail: press@swatchgroup.com

Press release

Mai 2001

Patek Philippe and Tiffany & Co. Celebrate the 150th Anniversary of Their Partnership With the introduction of the "T 150" Limited Edition Timepieces

For further information, please contact your local P.R. representative or:
Mrs. Jasmina Steele / International Public Relations Director
Patek Philippe Genève / CP 2654 / 1211 Genève 2 / Suisse
Tél.: +41 22 884 20 20 Fax: +41 22 884 20 40

or consult the site www.patek.com click on "Communications", then "Press and PR Information".

Press release

Mai 2001

9th edition of the "PATEK PHILIPPE" magazine

This 7 languages edition (English, French, German, Italian, Spanish, Japanese and Chinese), is distributed in 135.000 copies, exclusively to owners of Patek Philippe watches of the whole world.

For more information, please contact:
Mrs. Jasmina Steele / International Public Relations Director
Patek Philippe Genève / CP 2654 / 1211 Genève 2 / Suisse
Tél.: +41 22 884 20 20 Fax: +41 22 884 20 40

or consult the site www.patek.com click on "Communications", then "Press and PR Information".

Press release

26 April 2001

SWATCH GROUP AND AOL TIME WARNER ANNOUNCE AN INNOVATIVE MARKETING AND TECHNOLOGY COLLABORATION

Biel/Bienne / New York, April 26, 2001, Internet Time @250

AOL Time Warner and The Swatch Group, the world's leading watch manufacturer and creator of Internet time, announced today an innovative collaboration designed to utilize the strengths of each company in the areas of media, entertainment, technology, sports, timekeeping and next generation Internet access devices.

Under this multiyear agreement AOL Time Warner will create unique and innovative programs and promotional initiatives for The Swatch Group's eighteen global brands across online, print and television platforms, including Time Inc. and the America Online interactive properties.

As part of the new relationship, The Swatch Group intends to strategically develop, promote and market a range of product lines with AOL Time Warner entertainment content, as well as next generation Internet enabling technologies within their watch products and wrist devices across AOL Time Warner properties. These products will be designed to make Internet access easier and create an additional emotional and exciting experience for the consumer. For instance, using Swatch technologies currently available on Syncro.Beat and Net.Invader product lines, consumers could store their favorite AOL website addresses as well as AOL screen names for quick access to unique online activities which will be offered by AOL Time Warner and Swatch Group.

Bob Pittman, Co-COO of AOL Time Warner said: "This agreement with the Swatch Group demonstrates AOL Time Warner's ability to provide a truly unique value to our partners through a range of offline and online brands. We're very pleased to work with a global leader and innovative marketer like Swatch Group, whose popular brands are favorites with consumers around the world, to both showcase their products and explore opportunities to bring new interactive devices to consumers."

Nick Hayek, Co-Chairman of Swatch Ltd. and member of the Swatch Group Managing Board added: "We are enthusiastic to go one step further with AOL Time Warner with whom we have had excellent relations for many years. Considering the strong consumer impact of our brands, this agreement perfectly matches the global leadership strategies of The Swatch Group with its strong development and its worldwide, solidly founded activities."

About The Swatch Group Ltd.
The Swatch Group Ltd. is known for its unique position in mastering the technology for the wrist, its design competencies together with the recognized inventive communication skills and the global presence of its highly emotional authentic watch brands and companies Breguet, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union, Tissot, Calvin Klein, Certina, Mido, Pierre Balmain, Hamilton, Swatch, Flik Flak, and Endura.

The Swatch Group Ltd. is today the world's largest manufacturer of finished watches and producer of high quality movements, watch components and electronic devices. The Swatch Group Ltd. achieved a new record in the year 2000 with gross sales up to CHF 4.26 billion (+17.6%) and a net income of CHF 651 million, representing an almost +50% increase over the preceding year.

About AOL Time Warner AOL Time Warner (NYSE:AOL) is the world's first Internet-powered media and communications company, whose industry-leading businesses include interactive services, cable systems, publishing, music, networks and filmed entertainment.

Contacts: AOL Time Warner: Bruce Harris Phone +1 703 265-1408

The Swatch Group Ltd, Béatrice Howald, Press Office
Seevorstadt 6, CH 2501 Biel / Bienne
Phone +41 32 343 68 33, Fax +41 32 343 69 22
press@swatchgroup.com

Press release

April 2001

Ulysse Nardin- FREAK

• 1. Participation in the extraordinary result of the faithful sharehold ers, holding the stock since many years, by means of an appropriation of available earnings which is particularly tax attractive for individuals. No withholding tax is deducted from the repayment of share capital.
• 2. Reduction of the considerable share capital of CHF 312.1 mio to CHF 140.6 mio without major influence on the consolidated equity of the Group which would only be slightly reduced from 71.2 % as of December 31, 2000 to 67.6 % (previous year 63.8 %) and thus still representing two thirds of the total balance sheet.
• 3. Dynamic management of the equity while keeping the full range of action with respect to maintaining the reserves resp. the result brought forward.

• 1. Further expansion and reinforcement of the top prestige and luxury segment. In this connection, the integration of Breguet and Glashütte Original in the Group’s distribution structures and the launch of Léon Hatot and Jaquet Droz products should be mentioned, along with the launch of high quality and highly complicated mechanical watches.
• 2. The jewellery collections of Breguet, Swatch, Omega and Léon Hatot will continue to be expanded.
• 3. Targeted strengthening of market presence by opening further retail outlets in the form of single-brand stores, in particular for Breguet and Omega, a first multi-brand store in the top segment under the name of “Tourbillon“, and setting up the e-commerce site for Swatch in the USA.
• 4. Launch of new products for all brands and in all price segments and support through brand-specific, independent and customer-targeted communication.
• 5. The further expansion and modernization of pro duction facilities, as well as improving efficiency, for top range mechanical and electronic movements and watch components for companies within the Group and third parties.
• 6. Expansion of margin -generating areas of the electronic components sector to meet market requirements.
• 7. Back-up for all measures through investment projects in all areas in line with the investment framework already announced.

Press release

Mars 2001

Parmigiani launches its own automatic movement

Two years after the launch of its hand-wound mechanical 8-day movement, the Parmigiani Fleurier manufacture will present at SIHH 2001 the second of its own movements, the Calibre 331 Automatic.
Of traditional size (11 1/2 lignes in diameter and 3.5 mm thick), the new automatic movement from the Parmigiani Fleurier manufacture has a power reserve of 55 hours stored by two spring barrels arranged in series.
The rewinding power of the Calibre 331 has a factor of two, meaning that, while it is being worn for one hour, the mechanism will accumulate a power reserve of two hours. The central oscillating weight pivoting on a ball race with 7 balls is of 22-carat gold.
Controlled by a balance oscillating with a frequency of 4 Hz (28,800 alternations per hour), the mechanism has the functions of hours, minutes, seconds and date. The Calibre 331 has 32 jewels and consists of 186 individual parts.
Intending to produce this new calibre only in small quantities, the Fleurier manufacture will use nickel silver as the main material. Stronger and less liable to oxidation than brass, the use of nickel silver alloy is a feature of the small series.
The bridges of the Calibre 331 are decorated wtih 'Côtes de Genève' enriched with snailing and chamfered by hand. The plate is circular-grained on both sides, while the levers and springs have their rims drawn and their upper surfaces stoned after chamfering.
The Calibre 331 will be used in the Forma, the new model which Parmigiani Fleurier is presenting at the forthcoming SIHH 2001.

Technical description Calibre 331

• 2 spring barrels in series giving a power reserve of 55 hours
• Balance frequency of 28,800 alternations /hour or 4 Hz
• Flat balance spring for precision timing to COSC requirements
• Glucydur balance with moment of inertia of 4.8 mg cm2
• Regulator assembly: 2 left-handed screws
• Uni-directional automatic winding
• Semi-instantaneous date change
• 3-position winding stem for manual winding, date setting and time settingw ith stop seconds
• 32 jewels
• Oscillating weight in 22 carat gold on a ball bearing (7 balls)
• 3 levels of hands for the dials 0.40, 0.80 and 1.50 thick
• Decoration of the bridges: Côtes de Genève and snailing on the upper surface, with hand-polished angles. Bridges rhodium-plated.
• Decoration of the plate: Circular graining on the bridge side and dial side. Plate rhodium-plated.
• Decoration of the steel parts: - levers, springs and jumpers: drawn top surface and outline, hand-polished angles
• Decoration of the wheelwork: wheels chamfered and circular-grained with sinks diamond polished on the bridge side

Swatch Group – In the year 2000 sales exceed the CHF 4 billion mark for the first time

Biel-Bienne, January 31, 2001

For the first time sales at the Swatch Group have reached CHF 4,263 million, with a growth rate of over 30 % in the top luxury segment alone
Once again the Swatch Group has achieved a record result with a growth in sales of 17.6 % compared with the previous year. Thanks to an improved consumer sentiment in Europe, the rapid recovery of markets in the Far East, a flourishing US economy during 2000 and the Group’s reinforced position in all markets sales rose to over CHF 4.26 billion for the first time in the history of the Swatch Group.
All sectors made a decisive contribution to this growth rate. It should be specially mentioned that, despite a high standard set in the second half of 1999, the Swatch Group suceeded in reaching a double-digit growth rate.

Despite of the weakening of the currency impact towards the end of the year to distinctively below 4 % of the annual turnover, the expectation of the Swatch Group Management of an annual growth rate of roughly 18 % was achieved.
With the strong growth rate in 2000, the benchmark has considerably increased once again. However, the Group is confident that it will achieve its ambitious objectives for 2001 thanks to its excellent starting position.
In view of the current development of the distrib ution network (retail and wholesale), the expansion of the electronic systems segment (increase of capacities) and the continuing high demand for finished watches and movements, in particular in the higher price ranges, a further rise in sales of between 10 and 15 % can be expected for 2001, depending on currency trends.

FINISHED WATCHES
Gross sales in 2000: CHF 3,120 m
(Previous year CHF 2,729 m) + 14.3 %

Annual sales in the finished watches segment rose by + 14.3 % over the previous year as a whole, despite the particularly high standard set in the second half of 1999.
The driving force, with a growth rate of over 30 %, was provided by the brands in the top luxury segment (excluding Rado and Longines). With a new management, innovative measures for both products and communication, Breguet achieved an above-average growth rate. Sales at Blancpain also increased at an extraordinary rate. A new addition in this segment is the brand Glashütte -Original. All brands showed excellent growth, the continuing marked success of Omega deserving special mention. The successful opening of the first Omega single-brand salespoint on the prestigious Bahnhofstrasse in Zurich was a further demonstration of this brand’s strength and potential.
Thanks to innovative ideas adopted on the product and marketing side, Longines also achieved an excellent growth rate. Rado increased its figures as usual steadily and solidly.
The middle-range segment also achieved double-digit growth, Tissot producing especially good results.
In the Basic Range it was mainly sales through Swatch Stores which produced a good sales increase. Whereas sales in the other distribution of some parts of Western Europe showed a slight decrease, all other markets show growth. Due to the partic ularly high utilization of our production capacities, the launch of the Swatch products Skin Chrono and Square planned for the latter part of last year was slightly delayed with the consequence that this part of the turnover will only be realized in the current year. Furthermore, the production of the low-priced Lanco watches and some areas of the Private Label products have been reduced in order to make capacity available which was concentrated on production of Swatch products as well as on the luxury and prestige segment. The importance of Swatch Telecom products has also decreased.
The specific and targeted development of the Group’s own retail structures, the launch of the e-commerce-platform in the USA in spring 2001, the step-by-step expansion of the jewelry sector at Breguet, Swatch, Omega and Léon Hatot and the continuing systematic integration of the brands Breguet and Glashütte -Original in the Group’s own sales structures (prior to the take-over, Glashütte-Original was almost exclusively distributed in Germany and Austria and will, therefore, take a strong advantage of the international scope of the Swatch Group) will have an additional positive impact on the Group’s ambitious targets for 2001.

PRODUCTION OF WATCHES, MOVEMENTS AND COMPONENTS
Gross sales for 2000: CHF 1,412 m
(Previous year CHF 1,190 m) + 18.7 %
Of which third parties CHF 727 m
(Previous year CHF 575 m) + 26.4 %

The enormous efforts made to achieve a turnaround in this segment led to an impressive result (rise in sale s of + 18.7%).
The higher price segment in particular saw strong demand for both mechanical and electronic movements, while in the low price segment, where prices remained relatively stable, only modest growth was targeted and realized.
It is planned to meet the current high demand for movements and components through expansion projects involving a considerable proportion of the investment program announced by the Group last summer which will be used to develop and modernize capacities as well as to rationalize production processes.
Progress was also made in rationalizing the production of components and sales figures rose accordingly. Favre & Perret considerably increased their production of gold cases for top range watches, both for brands within the Group and for third parties. The Group’s balance spring manufacturer Nivarox-Far also achieved double -digit growth and with further investment it will be in a better position to meet in the future rapidly increasing demand. Final assembly for all brands conc entrated in Swatch Group Assembly, a strategy which has had positive consequences. Universo, which manufactures hands and whose figures have been consolidated for the first time, will be drastically modernized using investment funds dedicated to rationaliz ations. This will have a positive impact in the future and turn the company from losses to clear profits.
Order books at ETA, Nouvelle Lémania and F. Piguet are more than full for 2001. In some parts of the product portfolio of ETA as well as the full range of products at Nouvelle Lémania and F. Piguet orders far exceed production capacity for the current year. Here too, detailed plans for expansion are being drawn up and first project realizations are in progress.

ELECTRONIC SYSTEMS
Gross sales for 2000: CHF 468 m
(Previous year CHF 377 m) + 24.1 %
Of which third parties CHF 412 m
(Previous year 320 m) + 28.8 %

Sales in the electronic systems sector also rose considerably in 2000. EM Marin increased its sales strongly in taking advantage of the numerous possibilities of applications in the field of low power / low voltage products with more than 70 % of sales to third parties, Lasag has taken profit of strong demand in the field of industrial laser applications and also Oscilloquartz developed significantly.Thanks to our strong position in many and various markets, particularly also outside the markets of mobile phones, and our solid foothold in the microelectronics manufacturing sector, further expansion can confidently be backed up by a targeted investment program.
Micro Crystal has taken advantage of the strong demand of the mobile phone producers. According to more recent projections, growth rates seem to slow down.
Following radical changes in mobile telephony Renata‘s lithium-ion battery project has been somewhat delayed, which has necessitated certain modifications in the product concept and the installations for production. Plans for the project were subsequently revised and the project was rescheduled. As a consequence, Renata’s turnover has stagnated.

EXPECTED PROFIT FOR 2000
With regard to operating result and net profit for 2000, final figures (despite of some shadows and problem areas mentioned above) are expected on record levels considerably exceeding those for 1999 and revealing growth rates substantially higher than those realized in sales which is the expression of the vigorous, manifold and well-balanced Swatch Group.

CONTACTS
Edgar Geiser (CFO) and Thomas Dürr (Corporate Treasurer)
The Swatch Group AG
Biel-Bienne Switzerland
Tel. +41 32 343 68 11, fax +41 32 343 69 16
e-mail: investor.relations@swatchgroup.com

Beatrice Howald, PR & Press Office
The Swatch Group AG
Biel-Bienne
Switzerland
Tel. +41 32 343 68 33, Fax +41 32 343 69 22
e-mail: press@swatchgroup.com

THE IOC AND SWATCH GROUP LTD SIGN LONG TERM PARTNERSHIP

LAUSANNE/BIEL, Switzerland (21 January 2001)
The International Olympic Committee (IOC) and The Swatch Group Ltd. announced the historic signing today of a long term partnership in the areas of Timing, Scoring and Venue Results Services for the Olympic Games.

The Swatch Group Ltd. will be the Official Timekeeper and Results Service Partner for the Games of the XXVIII Olympiad in Athens in 2004, the XX Olympic Winter Games in Turin in 2006, as well as the 2008 Olympic Games and 2010 Olympic Winter Games.

Following its success at the Atlanta and at the Sydney Olympic Games, the IOC selected The Swatch Group Ltd. to undertake the Timing and Scoring Services delivery and has also elected to extend their mandate to include On-Venue Results Services. The agreement also foresees the provision of similar services for the 2004 to 2010 Paralympic Games.

Commenting on the partnership, Nicolas G. Hayek, Chairman of the Board and Chief Executive Officer of The Swatch Group Ltd., suggested "the Olympic Games are not only the greatest sports event in the world, they are much more then a sporting event - the Games are an emotional festival and the most perfect, peaceful and warmhearted competition between the youth. The Olympic Games fit perfectly with Swatch's strategy."

The IOC President Jean Antonio Samaranch said "The Swatch Group has been a long standing Partner of the Olympic Movement, developing the necessary equipment and know-how, continuously training their experts. The Swatch Group has been, with a very few exceptions, the timekeeper of practically all the Olympic Games of the 20th century. The IOC is very pleased to be extending its relationship with the Swatch Group over the next decade."

The agreement marks the first time that the IOC has entered into a long term agreement for the provision of Timing, Scoring and Venue Results Services. The partnership further reinforces the IOC's strategy to develop a long term technology consortium, lead by the Sema Group as the systems integrator and composed of a small core of key technology partners to ensure the successful delivery and transfer of knowledge from one Olympic Games to the next.

Contacts CIO - Tel. +41 21 621 6111:
Michael R. Payne, Directeur du marketing
Emmanuelle Moreau, Chargée des médias
Contact Swatch Group - Tel.+41 32 343 68 11
Edgar Geiser, CFO du Swatch Group
Béatrice Howald, Service de presse Tel. +41 32 343 68 33

Swatch Group: The Federal Anti-Trust Commission of Germany approves the acquisition of Glashütter Uhrenbetrieb GmbH

Biel/Bienne, November 7, 2000
The Federal Anti-Trust Commission of Germany in Bonn approved the acquisition of the Glashütter Uhrenbetrieb GmbH, the most authentic watch manufacture of Germany, by the Swatch Group Ltd. in Biel/Bienne (Switzerland). The new factory plans for Glashütte can now be worked out and discussed with the government of Saxony and the competent authorities.

Swatch Group Ltd.: Acquisition of Glashütter Uhrenbetrieb GmbH

Biel-Bienne, October 9, 2000 – The shareholders and the management of Glashütter Uhrenbetrieb GmbH and the Swatch Group Ltd. agreed that the Swatch Group Ltd. acquires with immediate effect all the shares of the German watch manufacture Glashütter Uhrenbetrieb, Glashütte (near Dresden, Germany). The Glashütter Uhrenbetrieb manufactures high-quality mechanical watches situated in the luxury segment of the “haut de gamme” watch market.

The brand Glashütte Original with its exclusive timepieces will be integrated into the existing range of watch brands of the Swatch Group. The considerable development potential of the Swatch Group, with its 155 production centers (factories) and its universal distribution network the largest watchmaker in the world, and the motivation of Glashütter Uhrenbetrieb to face the challenges of the 21 century within a strong and internationally active group led to the strategic decision of the pool companies Aureus Private Equity Ltd. to sell the company to the Swatch Group. An innovative spirit of their own is as much part of the products of the manufacture Glashütter Uhrenbetrieb as their appealing soberness, but above all they are the masterpieces of precision and sophistication of the German watchmaker tradition.

Personnel
The Saxon manufacture Glashütter Uhrenbetrieb employs today over 150 persons – experts in various sectors and highly qualified watchmakers. The company will remain in Glashütte near Dresden and the staff is maintained by the Swatch Group.

History of the watch manufacture Glashütter Uhrenbetrieb
The Glashütter Uhrenbetrieb was founded in Glashütte in 1845 by Ferdinand A. Lange. With their stunning timepieces, Julius Assmann, Johannes Dür rstein and of course Ferdinand A. Lange, to name only a few of the master watchmakers in Glashütte at that time, were awarded numerous gold medals at world exhibitions and international competitions, thus laying the foundation of the internationally unique reputation of this town in the quiet valley of Müglitz. Through know-how and the spirit of innovation, the “Glashütter” achieved complete autonomy in the production of watches. Today the company has the worldwide reputation of a unique manufacture of luxury watches – made in Germany.

Luxury segment of the Swatch Group
With the Glashütte Original, an additional prestigious brand will join the sixteen worldwide known watch brands of the Swatch Group. It will enhance the existing prestige and luxury segment and the upper market segment of the Swatch Group, until now composed of Breguet, Blancpain, the new jewelry watch brand Léon Hatot, Jaquet-Droz, Omega, Longines, Rado and Swatch.

Structure of the Glashütter Uhrenbetrieb
The new acquisition will be, according to the Swatch Group strategy, incorporated in the most suitable way in the structure of the Swatch Group, as for the all the other brands and profit centers. The previous shareholder and general manager Mr. Heinz Pfeifer will continue as General Manager of this separate profit center. Glashütter Uhrenbetrieb will thus be able to take full advantage of the Swatch Group’s resources and synergies in the worldwide distribution as well as in the development and manufacturing areas.

Press Release

Nivarox-FAR: Cary Activities sold to Brown & Sharpe Tesa SA

Le Locle, September 27, 2000

Nivarox-FAR, a company of the Swatch Group of Switzerland, in Le Locle (Switzerland) has sold its metrology sector known under the CARY brand (slip, plug and ring gauges, metrology equipments and calibration lab) to Brown & Sharpe Tesa SA in Renens (Switzerland), an affiliate of Brown & Sharpe, North Kingston (USA). The company will take over these activities as from October 1, 2000.

The transaction involves twenty-six employees. Twenty-three persons are taken over by Brown & Sharpe Tesa SA; three persons have been proposed internal transfers within the Swatch Group. Gross sales of the CARY sector in 1999 were approximately CHF 2,5 million. Its activities will be carried on in Le Locle where Brown & Sharpe wishes to preserve the know -how.

The reason for Nivarox-FAR’s decision was their will to focus their efforts on strategic core-competences: balance-springs, balance, regulation and other components for the watch industry. On the other hand, the metrology division – more related to the machines and tools sector – now has the possibility to develop their know -how within an international and renowned company whose strategic axis lies in the high precision metrology.

Brown & Sharpe’s gross sales achieved US$ 321 million in 1999. The Swatch Group realized gross sales of CHF 3626 million in 1999.

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