Capital reduction in relation to the completed share repurchase program 2007 and parts of the current repurchase program 2008 – Notice to the Disclosure Office of the SWX in accordance to Article 9 in conjunction with Article 17 of the SESTO-SFBC.

Biel / Bienne (Switzerland), August 21, 2008 – With the cancellation of 4’055’000 registered shares and 820’000 bearer shares in relation to the completed share repurchase program 2007 and parts of the currently running repurchase program 2008 and the resulting capital reduction, the threshold of voting rights of the Swatch Group Ltd falls below 10%. The capital change was effected in the Register of Companies on August 19, 2008 and will be duly published in the SHAB.

Composition of the shareholding (art. 17 par. 1 lit. a SESTO-SFBC): please refer to attached document.