BIEL-BIENNE, Switzerland, July 13, 2001 (PRIMEZONE) -- Peter Gschwind and Moritz Zuellig, co-founders of Progress Watch Group and former members of the board of Progress Watch Corp.(NQB:PROW), have announced their resignation from these functions. The Zurich-based management consultant Rudolf W. Hug has been mandated to put together a new board of directors for the holding company. Rudolf W. Hug has already been appointed chairman of the board of directors of Progress Watch AG. The second member of the board of directors of Progress Watch AG is Hanspeter Thiel. Hug and Thiel replace Willy Meier, who has stepped down from the board. Rudolf W. Hug was a member of the executive board of Credit Suisse for ten years as well as a member of the executive board of Credit Suisse First Boston. He is currently a member of the boards of directors of Swiss Post, Orell Fuessli Holding AG and Micronas Semiconductor Holding AG. Hanspeter Thiel was a partner at PriceWaterhouseCoopers in Zurich for more than 20 years, serving on the executive board for 15 years. Thiel was also chairman of the Swiss Chamber of Trustees from 1997 to 1999. The new board of directors of Progress Watch AG has thanked Peter Gschwind for his committed work.
Investors and customers have made available the funds required to solve Progress Watch AG's liquidity problems and ensure that the company can continue operations for the next few months. Salaries for June and July have been paid today. At the same time, the payments advanced by Canton Bern's unemployment fund (Arbeitslosenkasse) are to be paid back. Investors have also made commitments to finance the group's medium term growth. The bankruptcy ruling has thus been passed on to the next higher court (Supreme Court), and an appeal for a stay of bankruptcy has been submitted.
Employees of Progress Watch AG and the other subsidiaries were informed of these developments earlier today. There should be no need for any redundancies.
"The group's survival has been ensured for the time being. We now want to restart production and do the thing for which Progress Watch was originally created: i.e., produce first-class products for an attractive market at competitive prices," said Rudolf W. Hug. He is currently in the middle of talks with employees, customers and investors. Progress Watch Group should be ready to provide information about its long-term direction by the end of August at the latest.
Progress Watch Corp. is a company traded on the Pink Sheets of the Nasdaq OTC (over-the-counter) Market. It is the 100% owner of three subsidiaries in Switzerland: Progress Watch AG, Bienne, has been a successful developer and manufacturer of high quality mechanical movements since 1999. UF Microtechnique SA, Le Locle, develops and produces high quality precision components for mechanical movements. Spir-it SA, Bienne, develops and produces balance hairsprings made from new composites. Progress Watch AG owns the two development firms for mechanical movements Ind'M SA, Fontaines, and Conseilray SA, La-Chaux-de-Fonds, as well as Aigat SA and Claude Lehnherr SA, La Neuveville, which are involved in the precision stamping of watch movement components. Progress Watch AG has a production center in Tramelan.
This release contains certain forward-looking statements, which involve known and unknown risks,uncertainties and other factors not under the Company's control which may cause actual results, performance, achievements of the Company to be materially different from the results, performance of expectations implied by these forward-looking statements. These factors include, but are not limited to, the limited liquidity and the limited operating history of the Company.
Dr. Rudolf W. Hug
born 1944, Zurich
Education and training:
-- Doctorate in law from the University of Zurich
MBA from INSEAD Fontainebleau/F Senior Executive Program
of the Graduate School of Business, Stanford University.
Professional career:
1972-1976 - Credit Training Program at Chase Manhattan Bank, Geneva,
Frankfurt and New York. Responsible for credit business
with major customers at Chase Manhattan's Dusseldorf
branch.
1977 - Joined Credit Suisse.
1980-1982 - Head of the "Commercial Business with North America"
subdivision at head office in Zurich
1983-1986 - Head of Credit Suisse's office in Bern (10 regional
branches).
1987-1997 - Member of the executive boards of Credit Suisse and
Credit Suisse First Boston (CSFB).
Responsible for the group's international credit business and for
representing the bank on the boards of directors of various companies
including CKW, Sulzer, Rhone-Poulenc, Krupp Hoesch Maschinenbau
GmbH, Siemens subsidiaries, Pirelli.
Current activities:
Independent management consultant and autonomous member of various
boards of directors
Managing director of the private development bank EDESA SA.
Board memberships:
Swiss Post, Orell Fuessli Holding AG, Micronas Semiconductor Holding
AG, African Banking Corporation, Botswana (Chairman)
Hanspeter Thiel
Born 1939, Zollikon ZH
Training:
-- Cert. Auditor
-- Cert. Controller
Professional career:
1972-1978 - Executive board of a trustee company in Zurich
1979 - Schweizerische Revisionsgesellschaft, Zurich
Head of one of the audit departments.
1986 - Revisuisse (formerly Schweizerische Revisionsgesellschaft)
Head of the Zurich office and region, member of Swiss central
management committee.
1990-1997 - Revisuisse Price Waterhouse
Partner and member of Swiss executive board.
1998 - PriceWaterhouseCoopers
Partner and head of Global Risk Management Services, member of
the Swiss management board.
1.7.2000 - Retired.
Professional activities:
Auditing and consultancy for industrial, trading and service
companies, especially in the areas of corporate governance, risk
management, corporate finance and transaction support.
Expert witness in national and international arbitration procedures.
Professional bodies:
Member of various national and international auditing committees.
1986 - 1993 Chairman of the Swiss Chamber of Trustee's committee for
auditing practice.
1989- Member of the managing committee of the Swiss Chamber of
Trustees, 1997- 1999 Chairman.
Board memberships:
1999 Chairman of the board of directors of the Swiss Academy of
Auditors.