Little Switzerland Plans Caribbean and Alaska Expansion As Part of Long-Term Strategy.

FT. LAUDERDALE, Fla.--(BUSINESS WIRE)--Nov. 21, 1996--Little Switzerland Inc. (NASDAQ:LSVI) will open its twenty-sixth Caribbean store on Dec. 15, 1996 and its third in Alaska in May 1997, John E. Toler Jr., president and chief executive officer, told investors here today. The additions will be in Castries, St. Lucia, and in Skagway.

Speaking at a conference sponsored by Southeast Research Partners, Mr. Toler outlined a long-term growth strategy for the luxury products retailer aimed at increasing both volume of sales and profitability. "Little Switzerland is a unique resort-retailing franchise linked to the rapidly growing travel and leisure industry, and can capitalize on its position to benefit shareholders," Mr. Toler said.

Tourism continues to be the fastest-growing industry in the world, and shopping is the number one leisure-time activity, he said. Little Switzerland, founded in 1954 and publicly owned since 1991, had net sales of $63 million for the fiscal year ended June 1, 1996. Mr. Toler, who became president and CEO in October 1995, outlined a two-pronged program aimed at revenue growth coupled with better operating and net income performance. "Our revenues strategy focuses on gaining greater market share in current locations by improving comparable store performance and by opening new stores where potential for growth exists. Parallel to this effort, we will continue to pursue opportunities in new locations in the eastern and western Caribbean, as well as in locations farther afield," he said.

The profit growth phase of Little Switzerland's strategy calls for a concentration on higher-margin products plus a streamlining of the company's vendor universe. "We are also investing in leading-edge management data retrieval that will enable us to move rapidly to improve inventory turn and maximize margin yield," Mr. Toler said.

Mr. Toler noted that the 900-square-foot jewelry and watch boutique in Castries, St. Lucia, will open on Dec. 15 in time to take advantage of the traditional peak Caribbean cruise season. "The store in Skagway, our third in the growing Alaska market, is scheduled for a May 1 opening," he continued. "Spring and summer is the peak season for cruises to the Pacific Northwest and in 1997 Skagway, the heart of the historic gold rush district, will attract 400,000 passengers and 150,000 overnight hotel visitors, virtually a captive audience for our new store."

Little Switzerland Inc. is a leading specialty retailer of brand name watches, jewelry, crystal, china, fragrances and accessories, currently operating 25 stores on ten Caribbean islands, and two in Alaska. The company's primary market consists of vacationing tourists attracted by free-port pricing, duty-free allowances and a wide variety of high quality merchandise.

CONTACT: Little Switzerland Inc.

Ron Lataille, 809/776-2010