Press release

Press Release Repurchasing of own shares for the purpose of capital reduction
reopening of second trading line on virt-x as from May 14, 2004

Biel/Bienne, May 11, 2004

As already announced on the occasion of the publication of the 2003 business results, Swatch Group continues with the share repurchase program launched in November 2001, with the intention – for the time being – of repurchasing own shares amounting to a total value that corresponds to a maximum of 2% of the share capital for the purpose of reducing the capital at a later stage.
Upon termination of this share buyback, Swatch Group will have brought to an end the share repurchase program started in 1998 and will have repurchased a total of 10% of the share capital available at that time. The share repurchase offer applies to both the bearer shares and the registered shares of Swatch Group. Based on current share prices, the maximum buyback volume corresponds to a market value of roughly CHF 200 million. A capital reduction in the amount of the repurchased shares will be submitted by the Board of Directors to the ordinary General Meeting of Shareholders 2005.
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. The second trading line on virt-x will be reopened on May 14, 2004.

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.

Contacts :

Thomas Dürr, Swatch Group Treasurer
Telephone +41 32 343 67 29 Fax +41 32 343 69 11

Béatrice Howald, Swatch Group Public Relations / Press Office
Telephone +41 32 343 68 33 Fax +41 32 343 69 22