As already announced on the occasion of the publication of the 2006 business results, Swatch Group launches a share repurchase program for the purpose of reducing the share capital at a later stage.

The share repurchase offer applies to both the bearer shares and the registered shares of Swatch Group and corresponds to a value of CHF 400 million. The share repurchase will take place on virt-x on a second trading line for both the bearer and 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.