<PAGE>
Press Release
CONTACTS:
Robert L. Baumgardner, CEO
Patrick J. Hopper, CFO
Little Switzerland, Inc.
340-776-2010
FOR IMMEDIATE RELEASE
LITTLE SWITZERLAND ANNOUNCES TERMINATION OF DISCUSSIONS
WITH ALMOD DIAMONDS, LTD. REGARDING POSSIBLE EQUITY INVESTMENT
ST. THOMAS, U.S. VIRGIN ISLANDS -- December 21, 2000....Little Switzerland, Inc.
(OTC Bulletin Board: LSVIE), the Caribbean-based speciality retailer, today
announced that the previously reported discussions with Almod Diamonds, Ltd.
pursuant to which Almod proposed to purchase 7,069,000 shares of common stock
for an aggregate purchase price of $6,900,000 have been terminated.
Commenting on this development, Robert L. Baumgardner, President and
Chief Executive Officer, said, "We were unable to reach a definitive agreement
in that we were very far apart on several material issues, including, matters
relating to corporate control. At the present time, the Board of Directors of
Little Switzerland has concluded that it would not be in the best interest of
the Company or its stockholders to devote further time and resources to a
transaction that was supposed to be completed no later than September 30, 2000."
Mr. Baumgardner further added, "Although the significant delays
encountered while attempting to close this transaction adversely impacted the
Company's ability to properly merchandise our stores for the start of the
season, the Board and management remain committed to aggressively pursuing our
plan to return Little Switzerland to profitability and remain optimistic that
recent strong sales gains will continue into the third quarter of our fiscal
year."
This press release contains forward-looking statements with respect to
tourism and performance trends. The Company wishes to caution the reader of this
press release that actual tourism and results may differ from those discussed in
the forward-looking statements. Forward looking statements involve known and
unknown risks, uncertainties and other factors, which may cause the actual
results, performance or achievements expressed or implied by such
<PAGE>
forward-looking statements. The future operating results of the Company may be
affected by a number of factors identified in its year-end financials.
In addition to the foregoing, the Company's actual future results could
be impacted as a result of the risk factors set forth in the Company's various
filings with the Securities and Exchange Commission and of changes in general
economic conditions, changes in interest rates and/or exchange rates and changes
in the assumptions used in making such forward-looking statements.
Little Switzerland, Inc. is a leading speciality retailer of brand name
watches, jewelry, crystal, china, fragrances and accessories, operating in 17
stores on five Caribbean islands and in Alaska. The company's primary market
consists of vacationing tourists attracted by free-port pricing, duty-free
allowances and a wide variety of high quality merchandise.
# # #
