Progress Watch, Corp. Announces Start of Production.

Business Editors

BIEL, Switzerland--(BUSINESS WIRE)--Feb. 4, 2000

Progress Watch, Corp. (OTC:BB PROW), is a company specializing in the development, manufacture and sales of high-end watch movements, through its fully owned subsidiary, Progress Watch AG, Switzerland. Progress Watch AG has its headquarter located in Biel, Switzerland, and its manufacturing plant in Tramelan, Switzerland, both in the center of the Swiss watch industry.

First 4Hz Tourbillon in the World

The first product from Progress Watch is a revolutionary Tourbillon watch movement, first presented at the annual watch exhibition in Basel April 1999. The Progress Tourbillon is the first 4Hz Tourbillon in the world, and features higher accuracy, significantly improved possibilities for individualization in less space, has approximately 50% fewer parts than existing Tourbillons, and is thereby more reliable and shock proof, properties in high demand within the watch industry.

The Tourbillon, with its fascinating mechanical construction, eliminating the negative gravity influence on accuracy, is considered the Masterpiece of watch making, only found in the highest end brands, incorporated in watches selling at US$ 50,000 and more.

First Test Series in Production

The first Tourbillon units, scheduled for delivery to various high-end watch manufacturers in Q1, are now in production. The first units, individualized to customer demand, will be incorporated in new models to be presented to the market spring 2000. Progress Watch is now in advanced negotiations with a large number of such high-end watch manufacturers for long term volume contracts.

The company's manufacturing plant, with the latest state-of-the-art manufacturing equipment, is estimated to be ready for volume production in Q3, 2000.

Preliminary Estimates

Progress Watch estimates revenues in its current fiscal year (ending December 31, 2000) exceeding USD 10 million, and revenues in the range of USD 20 million in year 2001, with estimated net profits exceeding USD 5 million.

Management

The Progress Watch Group incorporates in its management famous people within the watch industry, such as Peter Gschwind and Elmar Mock.

Peter T. Gschwind, CEO &Director of Marketing, born 1957, has a degree from the Swiss Watchmakers School in Solothurm, Switzerland. From 1981 to 1986, he was employed by ETA. ETA is the watch movement manufacturer of the Swatch Group, owning brands such as OMEGA, TISSOT and RADO, and the famous SWATCH. As Sales-Promotional Manager his department was responsible for sales, promotion and Point of Sales activities for SWATCH (1983 to 1986) world wide.

Gschwind created ideas such as the giant SWATCH on the front of the Commerzbank building in Frankfurt and at the Swiss Pavilion at the EXPO 86 in Vancouver, the SWATCH balloons, the Swatch Freestyle Championship and many other activities.

Since 1986 Gschwind has been an independent consultant for watch companies such as TISSOT and CITIZEN, advising them on market development, sales strategies and establishment of new brands in the industry.

Elmar Mock, Director of Research &Development, born 1954, has engineering degrees in micro-technology from the University of Biel, Switzerland (1975) and plastic technology from the University of Brugg, Switzerland (1978). Mr. Mock was in 1980 named as one of the two inventors of the famous SWATCH. From inception through 1985 he was one of the key people involved with several aspects of the famous SWATCH project.

Another successful project was his development of the RockWatch for TISSOT, for which he was responsible from conception through to its production stage.

In 1986 Mock founded CREAHOLIC AG, Switzerland, a company specialized in creative research &development. The company has been involved with several Swiss watch manufacturers, and is working with a number of renowned customers in Europe, Asia and America.