SWX Swiss Exchange - Ad Hoc Publicity: Preliminary Investigation Of The Swatch Group Ltd Stayed

On 8 August 2003, the SWX Swiss Exchange announced that it had initiated a preliminary investigation of The Swatch Group Ltd with regard to a potential violation of Art. 72 of the Listing Rules ("Ad hoc publicity"). On the basis of this preliminary investigation, the SWX has concluded that The Swatch Group Ltd did not breach the provisions governing ad hoc publicity. The SWX has therefore stayed the proceeding.

The SWX has made enquiries into whether the CEO of Swatch, Mr Nick Hayek, disclosed potentially price-sensitive facts to the financial newspaper CASH in an interview. The interview took place on 28 July 2003 and was published in part on 6 August 2003 and in full in CASH no. 32 of 8 August 2003.

Under Art. 72 of the Listing Rules, price-sensitive facts are new facts which, because of their considerable effect on the issuer's assets and liabilities or financial position or on the general course of its business, are likely to result in substantial movements in the price of the securities. Accordingly, selective disclosure of such facts to a limited circle of individuals is prohibited. However, conversations with analysts and journalists are permitted, provided that no potentially price-sensitive facts are disseminated.

To the present knowledge of SWX, such was not the case in this particular case, which is why the SWX has stayed the proceeding.