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Press release from Business Wire

Tiffany Responds to Swatch Termination Claim

Monday, September 12, 2011

Tiffany Responds to Swatch Termination Claim11:11 EDT Monday, September 12, 2011 NEW YORK (Business Wire) -- Since Tiffany & Co. and The Swatch Group Ltd. entered upon this venture more than three years ago it has become increasingly clear that Swatch is unwilling to honor the terms of our agreement, make the necessary commitments and work cooperatively to develop the business for TIFFANY & CO. watches in the luxury space. Despite assurances to contrary made in 2007, Swatch has failed to provide appropriate distribution for TIFFANY & CO. brand watches, with the result that our current business forecasts do not include any meaningful increase in watch sales or royalty income. Tiffany has honored its obligations under the agreement, and insisted that Swatch honor its own obligations, particularly its obligation to respect Tiffany's rights regarding brand-management and product design. Tiffany & Co. is confident that its position will be vindicated in the pending arbitral proceedings in relation to this matter and Swatch's misconduct. About Tiffany & Co. Tiffany & Co. operates jewelry stores and manufactures products through its subsidiary corporations. Its principal subsidiary is Tiffany and Company. The Company operates TIFFANY & CO. retail stores and boutiques in the Americas, Asia-Pacific, Japan and Europe and engages in direct selling through Internet, catalogue and business gift operations. For additional information, please visit tiffany.com or call the shareholder information line at 800-TIF-0110. Tiffany & Co.Linda Buckley, 212-277-5900linda.buckley@tiffany.comMark Aaron, 212-230-5301mark.aaron@tiffany.comCarson Glover, 212-277-5917carson.glover@tiffany.com