Monday February 3 6:12 PM EDT
TAG Heuer Reports 10.6% Increase in 1996 Sales Company Acquires
Its UK Distributor
Announces Employee Stock Program
MARIN, SWITZERLAND, Feb. 3 /PRNewswire/ -- TAG Heuer International SA today reported that for the year ended
December 31, 1996, sales increased to a record Sfr. 419.7 million, a growth of 10.6% over the Sfr. 379.6 million in 1995.
The audited results for 1996 will be released in the first week of April.
"We are very pleased with our sales in 1996, which met our goals for the year, and position us for continued growth in
1997. Our strategy of reinforcing the prestigious positioning of the brand continues to be an essential objective in enabling us
to maximize revenue growth. To this end, in 1996, we were able to increase the average selling price per unit to Sfr. 586
compared to Sfr. 540 last year," Christian Viros, Chief Executive Officer, said.
Acquisition of UK Distributor
The Company also announced that it has signed an agreement to acquire its UK distributor, Duval, which has been
instrumental in successfully developing the TAG Heuer brand in the UK. The acquisition is an excellent strategic fit and
allows TAG Heuer to gain control over distribution in its most important European market. According to the terms of the
agreement, the highly skilled Duval team, under the management of Neil Duckworth, will remain with the Company. The
acquisition will be financed from internal resources and is expected to have a positive impact on earnings.
Employee Stock Program
As indicated at the time of the IPO, the Board of Directors has approved an employee stock program to further align the
interests of key executives with those of the Company's shareholders. Under this program, TAG Heuer will purchase stock
on the open market and award it to a group of about thirty managers. It is expected that the initial program will cost
approximately Sfr. 4 million and, under US GAAP, this cost will be spread over a three-year period during which time sale
of the shares will be restricted. In the following years, the global value of the program will increase by approximately Sfr.
0.7 million per year.
TAG Heuer International SA, through its wholly owned Swiss subsidiary TAG Heuer SA, is a leading designer, producer
and marketer of prestigious Swiss sports watches and chronographs which are sold under one of the world's most
recognized watch brands. Built on a history of achievement in precision timing dating back to 1860, TAG Heuer competes
worldwide in the prestige sports watch market with a series of sports watches that are distinguished by their strong sports
image, recognizable design, precision and durability.
Shares are listed on the Swiss and New York Stock Exchanges. In the United States, its shares are traded on the NYSE as
ADR's under the symbol, "THW." SOURCE TAG Heuer International SA
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