TIMEX denies any plan to change its Indian arm to 100 per cent subsidiary

Company release, January 18, 2005

New Delhi

TIMEX Watches Limited (TIMEX), today denied the news report "TIMEX Corp is buying residual 17 percent stake in the Indian arm" appearing in a section of the press. TIMEX Watches India Ltd. said that TIMEX Corp. has no plans to buy out the residual 17 per cent stake in its Indian subsidiary and converting the Indian arm from an 83 per cent to a 100 per cent subsidiary of the parent.

Mr. Kapil Kapoor, Vice President - Asia and Managing Director, TIMEX Watches Ltd. confirming the denial said, " Timex has reported a good Q2. This is a reflection of both the consumers and investors confidence in the Company. TIMEX has shown considerable growth this Q2 with cash profits of Rs. 74 lakhs for the quarter ended September 2004 against a loss of Rs.3.2 Cr for the corresponding period last year. There are no plans to make TIMEX India as 100% subsidiary of TIMEX Corp."

About Timex Watches Ltd.

The Timex brand has been at the top of the popularity and sales graph for decades now both in the US and Canada and in many places around the world. The TIMEX story dates all the way back to 1857 when it was established as The Waterbury Clock Company. The first TIMEX wristwatch was introduced in 1950 and quickly became the generic name in the field. TIMEX has a multi-brand strategy ranging from the sporty and high-tech to the dressy. There are also a variety of watches in cool colours and shapes aimed at the young and hip.

While every Timex produced since then has retained the virtues of those early watches, in the intervening 50 years, the company has introduced a steady stream of technological advancements including: Ironman Triathlon, the first full-featured performance sport watch. Indiglo night light, the unparalleled watch illumination system Data link, the first watch to interface with a personal computer Ironman Speed + Distance system, the first watch to use global positioning technology to accurately answer the questions; ''How far?'' and '' How Fast?'

TIMEX, headquartered in the United States, is one of the world’s preeminent watch brands. It is the leading brand in the US and Canada and enjoys strong market positions in several other countries around the world. TIMEX has worldwide manufacturing, marketing and distribution facilities in order to service its global presence.

Timex celebrated its landmark achievement of selling a 1 Billion watches worldwide and recently 150th year Anniversary Celebration. The TIMEX watch is the top seller in the US and Canada & is a brand valued and desired all over the world.

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