Marked rise in Group sales despite high basis for comparison with the previous and continued negative currency influences.


 Increase in operating result to CHF 299 million before and CHF 293 million (+9.3%) after extraordinary items respectively.


 Above-average increase to CHF 267 million (+21.4%) in Group net income, due to a strong financial result.


 Growth in sales of high-end watches significantly higher than the statistics published by the Fédération Horlogère.


 Sharp rise in sales in the watches, movements and components production segment.


 Slight decline in electronic systems, but clear indications of recovery in June.


 Positive outlook for the second half-year and 2005 as a whole.


Full Report on www.swatchgroup.com

Source : Swatch Group Press Release/Aug. 24, 2005

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