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Swatch announces new Swatch smart watch that delivers exclusive entertainment information and more via Microsoft's MSN Direct

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"Paparazzi" Offers Free Content and Chance to Meet Celebrities
Swatch, the innovative, trend-setting
watch brand from Swatch Group, the leading global watch corporation
from Switzerland, has joined with MSN Direct, a division of Microsoft
Corp., to launch a stylish and colorful new watch known as
"Paparazzi." With four new multi-colored styles, Paparazzi offers
wearers exclusive entertainment information and the opportunity to
meet celebrities.  In addition, Paparazzi owners can access the MSN®
Direct service to receive personalized information - including news,
sports, weather, horoscopes, stock quotes and more.
The velvet rope just disappeared for Swatch Paparazzi wearers.
Paparazzi owners will be in the know before everyone else thanks to
"Swatch City," the new, specialized content provided by Time Out that
offers tips on hot bars, cool clubs, hip locales, free events around
town.  Also unique to Swatch Paparazzi is the opportunity to register
to win a "Swatch Meet A Celebrity" package.
Swatch Paparazzi enables consumers the chance to meet a celebrity
from the worlds of business, sports and film/entertainment.  The
'Swatch Meet' sweepstakes unfolds over the next six months and is
available to buyers and non-buyers alike.  The first celebrity
meetings featured in the 'Swatch Meet' sweepstakes include: a tour of
the Consumer Electronics Show in January 2005 with Microsoft Chairman
and Chief Software Architect Bill Gates; a training session with
Olympic Gold Medalist Carl Lewis; and a visit to the set of the O.C.
with star Mischa Barton.  More information about 'Swatch Meet' is
located at www.swatch.com.
Swatch Paparazzi represents the first Swatch Smart Watch offering
automatic content out of the box.  The following content is available
to every Swatch Paparazzi buyer upon purchase: 'Swatch City'
(entertainment news and national news headlines); local weather highs
and lows; major stock indexes; Swatch Meet and Swatch News, which
relates brand happenings.
Nick Hayek, Jr., Swatch Group CEO, said, "Communication is very
powerful. The information you share is one part and the way you
communicate it is the other.  Swatch Paparazzi offers a lifestyle of
communication that is original and fun - clearly a plus for the
wearer."
MSN Direct - Sophisticated Technology
MSN Direct offers Paparazzi wearers the ability to customize
various channels of information, including news, sports, weather,
horoscopes, personal messages, calendar appointment reminders, stock
quotes, lottery information and more. Subscribers to MSN Direct
choose only the information they wish to receive on their watch by
visiting the MSN Direct Web site at www.msndirect.com.  Since MSN
Direct was launched at the Consumer Electronics Show (CES) in January
of this year, the amount of content offered by the service has
doubled, and subscribers can choose from a range of pricing options
to best fit their needs.
"The introduction of the Swatch Paparazzi watch represents a major
milestone for Smart Watches and MSN Direct.  We are thrilled to work
with an industry leader like Swatch to offer specialized content and
stylish watches specially tailored for Swatch customers," said Bill
Mitchell, corporate vice president of the Mobile Platforms Division
at Microsoft.
Swatch Meet
Of all the functions provided by Paparazzi, perhaps the most
evocative is the opportunity to meet a celebrity.  Through the
sweepstakes called "Swatch Meet" wearers can register to win the
chance to spend time with one of four celebrities representing the
worlds of business, sports, music and film/entertainment.  The
sweepstakes is scheduled to start on October 20 and will run for six
months.  One winner every six weeks will be selected at random and
flown to meet the celebrity of the month - courtesy of Swatch.
About Swatch Paparazzi
The Swatch Paparazzi is available in four vivid colors including
orange, red, black and blue/beige, and all sport a silicon strap
(with adjustable length). The traditional Swatch plastic case comes
in a new chunky design and an X-large size. Five function buttons
recessed into the case allow the wearer to navigate and control the
watch functions. The Swatch Paparazzi is waterproof and comes with a
lithium-ion rechargeable battery and a 2-year warranty. Swatch
Paparazzi retails for $150 at all 40 Swatch stores and online at
www.swatch.com.
About MSN Direct
MSN Direct, part of the Smart Personal Objects Technology
initiative, is a specialized wireless service that combines
technology and fashion to deliver customized and personalized
information to people. Those interested in learning more about MSN
Direct can visit http://www.msndirect.com.
About Microsoft
Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader
in software, services and solutions that help people and businesses
realize their full potential.
About Swatch
Swatch is a member of the Swatch Group, the world's largest watch
producer and distributor, with over 157 production sites in
Switzerland. The Swatch Group is the official timekeeper and
data-handling operator for the Olympic Games in Athens, Turin,
Beijing and other cities.
Microsoft and MSN are either registered trademarks or trademarks
of Microsoft Corp. in the United States and/or other countries.
The names of actual companies and products mentioned herein may be
the trademarks of their respective owners.
Note to editors: If you are interested in viewing additional
information on Microsoft, please visit the Microsoft® Web page at
http://www.microsoft.com/presspass on Microsoft's corporate
information pages. Web links, telephone numbers and titles were
correct at time of publication, but may since have changed. For
additional assistance, journalists and analysts may contact
Microsoft's Rapid Response Team or other appropriate contacts listed
at http://www.microsoft.com/presspass/contactpr.asp.

Contact:

Carmen Daetwyer
Swatch Int'l PR Department
Tel. 0041/32/343'97'28
E-Mail: carmen.daetwyler@swatch.com

Dave Hanon or Rapid Response Team
Waggener Edstrom for MSN Direct
Tel. 001/425/638-7000 or 001/503/443-7070
E-Mail: daveh@wagged.com or rrt@wagged.com