Fossil (FOSL) Announces Adoption of Stock Repurchase Plan Under SEC Rule 10b5-1 And Non-Executive Chairman Enters A Stock Sales Plan

June 11, 2008 4:05 PM EDT

Fossil (Nasdaq: FOSL) announced that it has established a plan under Rules 10b5-1 and 10b-18 of the SEC to provide for pre-determined repurchases of Fossil's common stock, subject to certain conditions and other contingencies established under the plan. The plan will allow the Company to repurchase up to 2,000,000 shares of common stock, which represents approximately three percent (3%) of the Company's outstanding shares. Purchases would be made from time to time in the open market and through privately negotiated transactions, subject to general market conditions. The shares are being repurchased to mitigate the dilutive impact of equity grants during the course of the year under the Company's long-term incentive plans. The repurchase plan will expire on December 1, 2008. On June 9, 2008, there were 68,263,953 shares of common stock issued and outstanding.

Fossil also announced today that its Non-Executive Chairman, Tom Kartsotis, has entered into a plan under Rule 10b5-1 of the Securities and Exchange Commission to provide for pre-determined sales of a portion of his Fossil common stock over the next six months, subject to a limit price of $35.00 per share and other contingencies established under the plan. The closing price of the Company's common stock on the NASDAQ Global Select Market on June 10, 2008 was $30.31.

Mr. Kartsotis adopted the plan in order diversify his assets for personal financial and estate planning purposes with the goal of minimizing any market impact of this diversification by spreading such sales over an extended period of time rather than during the Company's traditional "window periods" for sales of common stock.

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