Repurchasing of own shares – opening of second trading line on virt-x and on SWX Swiss Exchange as of December 10, 2007.

Biel / Bienne (Switzerland), December 7, 2007 – As already announced in the press release on the occasion of the closing of the last repurchase program dated November 9, 2007, the Swatch Group will launch another share repurchase program.

The share repurchase offer applies to both the bearer shares and the registered shares of Swatch Group and corresponds to a value of CHF 420 million. The share repurchase will take place on virt-x on a second trading line for the bearer shares and on the SWX Swiss Exchange for the registered shares, established solely for this purpose.

Taxation Aspects

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