Subject matter: CPSIA announcement

Consumer Product Safety Improvement Act - limits for lead in childrens' jewellery as of 10 February 2009.

Dear Customers,

Preciosa would like to inform you that all crystal components made by Preciosa are enriched with lead, for that reason, Preciosa until further notice cannot recommend the use of its components in any product intended for children under age of 12.

This decision is based on our assumption that crystal components Preciosa currently supplies will not meet 600ppm lead limit set in Consumer Product Safety Improvement Act for ' products.

Preciosa has decided to take these measures although several independent studies have clearly proved that the lead is bonded in the silicate matrix of glass. As a result, the strength of bond prevents the lead from leaking out in an amount dangerous to humans. That applies to even such accidents when crystals happened to be swallowed.

Being aware of importance that children's products have to your sales, Preciosa along with other producers are applying for an exclusion granted to crystal components. If the exclusion is not granted, Preciosa will take all necessary steps to support you to achieve your sales targets.

To learn more about latest news on CPSIA, please click: http://www.cpsc.gov/ABOUT/Cpsia/cpsia.HTML

In case of further questions, turn to our sales representative or mail to info@preciosa.com

Sincerely yours,

Your partner - Preciosa

Dear valued customer,

The following report should provide you with a thorough understanding of federal law HR 4040 also known as the CPSIA (the Consumer Product Safety Improvements Act of 2008).

Scope of the regulation

The CPSIA pertains to ' products ONLY. There are no federal laws, regulations or standards in effect for ' products that would restrict the use of crystal.

The state standards in California (A.B. 1681 for jewelry) and their equivalent in Minnesota are still in effect, permitting unrestricted use of leaded crystal on adults' jewelry.

Definition of products covered by HR 4040

While the CPSIA contains some general obligations, the CPSIA lead limits apply ONLY to ' products. ' products are defined as " consumer product designed or primarily intended for children 12 years of age or younger".

Timing and Provisions:

Certain provisions of HR 4040 pertaining to ' products will be implemented over the next three years. Those seeking an in-depth understanding of the provisions should read the law in its entirety and/or seek advice from a legal counsel.

Members of the Fashion Jewelry Trade Association may sign up to receive updates regarding federal and state regulations, as well and a monthly newsletter. For further information, have a look at the organization's website (http://www.fjta.org) or call 401- 295-4565.

If you would like to talk to us about this matter in more detail please contact Emily Redmond at Emily.Redmond@swarovski.com for more information.

Important Notice

Please note that this is not a legal advice. If you need any legal information or consultancy you should consult with a lawyer on your individual obligations. All manufacturers are obligated to understand and comply with the law. Guidance from the Consumer Product Safety Commission (the organization responsible for the CPSIA) may change, so regular checking of the CPSC website is advised. (http://www.cpsc.gov)

Swarovski North America Limited
Crystal Components Business
One Kenney Drive
Cranston, RI 02920
Phone (401) 463-6400 Fax (401) 463-4701

California Propostion 65 (for California residents)

Some of the base metal findings, charms, and leaded crystal beads sold by our company may contain small amounts of lead, a chemical known to the State of California to cause cancer, birth defects, and other reproductive harm if ingested. We recommend that you wash your hands after handling, and keep all items away from small children and infants.