Tiffany & Co. Celebrates Opening of Laurelton Diamonds Facility in Canada's Northwest Territories.

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 28, 2003

Tiffany & Co. today celebrated the opening of its Laurelton Diamonds cutting and polishing center located in Yellowknife in Canada's Northwest Territories. The Founding Ceremony was attended by local dignitaries and civic leaders, including Northwest Territories Premier Stephen Kakfwi and Yellowknife Mayor Gordon Van Tighem.

Laurelton Diamonds, a Northwest Territories company and wholly-owned subsidiary of Tiffany & Co., has designed this 12,000-square-foot, state-of-the-art facility to ultimately accommodate 75 employees. The skilled workforce, currently in start-up mode with 6 polishers, will play an important role in supporting Tiffany's expanding needs for diamonds of the highest quality.

Tiffany & Co. Chairman Michael J. Kowalski said, "Laurelton Diamonds is an important link in a chain of supply that gives us more control over the sourcing of our diamonds. This new facility also helps achieve our stated objective of providing meaningful economic opportunities to the local community and establishing closer ties to our Canadian partners."

Mr. Kowalski also announced a $25,000 contribution to the Stanton Territorial Hospital Foundation to assist with "Operation Looking Glass," a fundraising effort to purchase endoscopic equipment for the Stanton Territorial Hospital. "Wherever Tiffany is welcomed to a new community, we make every effort to support the work of local institutions and organizations that serve the needs of the community. It is our great pleasure to participate in the fundraising efforts of the Stanton Territorial Hospital."

In 1999, Tiffany purchased a 14.7% equity investment (USD$71 million) in the Canada-based Aber Diamond Corporation, a 40% owner of the Diavik Diamonds Project in the Northwest Territories of Canada. Tiffany also entered into a diamond purchase agreement with Aber to purchase a minimum of USD$50 million in diamonds, subject to Tiffany's quality standards, annually for 10 years.

Tiffany is the first retailer to enter into such an agreement to source rough stones directly from a mine. In addition to establishing a direct supply of high quality rough diamonds, the Diavik mine meets Tiffany's rigorous standards for securing materials in the most environmentally and socially responsible manner. The first diamonds mined under the contract were delivered in March 2003, with the rough sent to Tiffany's new sorting center in Antwerp, which has subsequently sent some of the rough to the Territories to be polished at this new Laurelton Diamonds facility.

Tiffany is also creating business opportunities in the wider community. The company has signed an agreement with the Behcho Ko Development Corporation and the Kitikmeot Corporation that gives the Dogrib and Inuit business groups design and financial support for the development of a Northern inspired jewelry collection and the establishment of related manufacturing and merchandising operations in the North.

Tiffany & Co. is the internationally renowned jeweler and specialty retailer. Sales are made primarily through company-operated TIFFANY & CO. stores and boutiques in the Americas, Asia-Pacific and Europe. Direct Marketing includes Tiffany's Business Sales division, Internet and catalog sales. Specialty Retail primarily includes the retail sales made in Little Switzerland, Inc. stores and also includes consolidated results from other ventures now operated or to be operated under non-TIFFANY & CO. trademarks or trade names. TIFFANY & CO. is a publicly held company with its shares traded on the New York Stock Exchange (symbol: TIF). Additional information can be found on Tiffany's Web site at www.tiffany.com.

TIFFANY & CO. and TIFFANY are trademarks of Tiffany and Company.