Press release

Swatch Group: Enhanced synergies in the non-watchmaking sector

Biel/Bienne, August 11, 2005
In order to fully exploit the synergies within The Swatch Group Ltd., it has become necessary to restructure some of the Group's electronics businesses.

In view of this, Swatch Group SA has decided to reorganize the operations of Omega Electronics. This company, active in the non-watchmaking sector, is part of the Swatch Group's "Electronic systems" division.
• The sports business will be merged with Swiss Timing's sports activities and all the employees will be transferred.
• The RFID (Radio Frequency Identification) business will be merged with EM Microelectronic-Marin's activities. All the jobs affected will be transferred.
• The P.I.S. (Passenger Information Systems) business will be taken over by the Swiss company PEL Passenger Electronics SA in Biel/ Bienne. All employees affected will be transferred to the new business.

PEL is a new Swiss company belonging to Mr. R. Kossatz, owner of the German company Fernmeldewerk München-Aubing GmbH (FW).
Swiss Timing, a company in the Swatch Group, is the world leader for timekeeping at Olympic, international and top-level national sporting events.
EM Microelectronic-Marin, a company in the Swatch Group, is a world-class specialist offering high-tech solutions for energy-saving circuits and low-power products.

Swatch Group Contacts Investors and Financial Analysts:
Edgar Geiser, CFO, and Thomas Dürr, Corporate Treasurer
Tel +41 32 343 68 11, fax +41 32 343 69 16

Béatrice Howald, Media Office
Tel +41 32 343 68 33, Fax +41 32 343 69 22