Progress Watch Corporation

September 22, 2010 10:00 ET

Progress Watch Announces: New Board and Unique New Watch Movement

SENDEN, GERMANY--(Marketwire - Sept. 22, 2010) - Progress Watch Corporation (PINK SHEETS:PROW) announces that a new board has been elected. Peter Gschwind resigned as President of the Company and as sole director of the Swiss subsidiary Calibrum AG. Also Lars Henrik Saethre is no longer at the board of the company.

The new Board of Directors exists of Hans Handl (President) and owner of 28 % of the shares of Progress Watch, Anke David (Treasurer) and Jan Wilgenhof (Secretary). The new Board of Directors was elected by the main shareholders of the corporation, holding more than 50% of the shares in the company.

The board has engaged a certified public accountant to investigate the books and records of the company and to advise on the preparation of financial statements of the company. The results of this investigation showed financial and legal irregularities and omissions of the former board. The current board has decided to dissociate itself from all former board-members of the company and is currently investigating the possibilities of legal actions and claims against those board-members. Furthermore, the board has published the annual reports over the last years and quarterly reports as from the first quarter 2009 until the second quarter 2010.

The board is pleased to report that a new team of highly qualified engineers has been engaged. This team, including Peter Perler and the well-known watchmaker Roman Winiger, is in the process of finishing one of the companies patents, a see-through triple axe rotary tourbillon. The board is proud that the eminent horologist Anthony Randall has agreed to be the new consultant. Based on the existing letters of intent with potential customers, the board expects to start producing and selling this see-through triple axe rotary tourbillon next year. The funds to finish and to start operations are secured until 2011.

Due to the resignation of the former President, the fixed costs of the company for the fiscal year 2010 could be reduced with approx. US$ 220,000 per annum in comparison to the former years.

The board is confident that the break with the past and the concentration on the existing product development will help the company to create value for the shareholders.

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.

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