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Richemont announces restructuring proposals

May 22, 2008

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Geneva—After an extensive review period, Swiss luxury group Richemont has announced proposals that would see the company separated into two entities: a luxury goods business and an investment vehicle.

The luxury business would be headquartered in Switzerland, and the investment vehicle, currently proposed as an investment fund, would be based in Luxembourg.

According to the proposals, Richemont shareholders, in addition to retaining their shares in the luxury goods business, would receive shares in the investment vehicle. Further, shareholders would also be able to receive a substantial part of their interest in British American Tobacco (BAT) shares directly.

Subject to confirmation from Swiss regulators and the SWX Swiss Exchange (SWX), the luxury goods business would continue to be listed on SWX, and it is expected that the new investment vehicle would be listed in Luxembourg, subject to the approval of Luxembourg regulators and the Bourse de Luxembourg.

Appropriate arrangements would be made to allow holders of Richemont South African depository receipts (DRs) to hold and trade DRs for both the luxury goods and investment entities, subject to the approval of the JSE Ltd., which operates the Johannesburg stock exchange.

Discussions are also in progress with BAT, which has committed to apply for a secondary listing of its shares on the Johannesburg stock exchange. This would enable South African residents who currently hold Richemont DRs to hold BAT shares directly.

According to Richemont, significant progress has been made in developing and refining the proposals. Restructuring the group is complex, however, and to date, not all the necessary approvals have been obtained, and a number of specific conditions must be fulfilled before the proposed restructuring can be implemented.

Richemont owns a portfolio of leading international brands or "Maisons," which are managed independently of one another, recognizing their individuality and uniqueness. The businesses operate in five areas: Jewellery Maisons, including Cartier and Van Cleef and Arpels; Specialist Watchmakers, including A. Lange and Sohne, Baume and Mercier, IWC, Jaeger-LeCoultre, Officine Panerai, Piaget and Vacheron Constantin; Writing Instrument Manufacturers, including Montblanc and Montegrappa; Leather and Accessories Maisons, including Alfred Dunhill and Lancel; and other businesses, including Chloé, smaller Maisons and watch-component manufacturing activities for third parties.

In addition to its luxury goods business, Richemont holds a 19.4 percent interest in BAT, one of the world's leading tobacco groups.

For more information about Richemont, visit its Web site, Richemont.com.
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