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TIFFANY REPORTS SECOND QUARTER RESULTS; NET EARNINGS FROM CONTINUING OPERATIONS RISE 41%

NET SALES UP 19% ON STRONG COMP STORE SALES GROWTH; COMPANY SELLS, LEASES BACK ITS TOKYO FLAGSHIP STORE

New York, N.Y., August 30, 2007 – Tiffany & Co. (NYSE: TIF) reported today that its net sales increased 19% in the three months (second quarter) ended July 31, 2007, reflecting geographically broad-based growth across the U.S. and many international markets. Comparable store sales increased 17% in the U.S. and 7% (on a constant-exchange-rate basis) internationally. The strong sales growth and an improved operating margin led to a 41% increase in net earnings from continuing operations. The Company recorded an after-tax charge of $23,583,000, or $0.17 per diluted share, related to the pending sale of its Little Switzerland business.

Net sales in the second quarter rose 19% to $662,562,000. On a constant-exchange-rate basis which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars (see attached "Non-GAAP Measures" schedule), net sales increased 20% and worldwide comparable store sales increased 13%.

In the six months (first half) ended July 31, 2007, net sales increased 18% to $1,258,291,000. On a constant-exchange-rate basis, net sales rose 17% and worldwide comparable store sales rose 11%.

Net earnings from continuing operations in the second quarter increased 41% to $63,219,000, or $0.45 per diluted share, from $44,714,000, or $0.32 per diluted share, in the prior year. Including the charge related to the pending sale of Little Switzerland and its losses from operations, net earnings were $36,973,000, or $0.26 per diluted share, compared with $41,144,000, or $0.29 per diluted share, in the prior year.

Net earnings from continuing operations in the first half rose 28% to $112,624,000, or $0.80 per diluted share, compared with $88,198,000, or $0.62 per diluted share, in the prior year. Net earnings increased 3% to $86,632,000, or $0.62 per diluted share, compared with $84,286,000, or $0.59 per diluted share, in the prior year.

Sales by channel of distribution were as follows:

Michael J. Kowalski, chairman and chief executive officer, said, "These sales results, which exceeded our expectations, are continued confirmation of the strength of the TIFFANY & CO. brand around the world and continue to validate the effectiveness of our focused distribution and product strategies. While diamond jewelry continued to perform exceptionally well, led by strength in engagement jewelry, we were also pleased with growth in many other jewelry categories and with the overall balance of our product mix between aspirational and accessible price points."

Other financial highlights were as follows:

Regarding the Company's pending sale of its Little Switzerland business to NXP Corporation, Mr. Kowalski said, "After owning Little Switzerland for almost five years, we concluded that our Company can more productively and profitably benefit from largely focusing on the growth potential of the TIFFANY & CO. brand."

In another development, the Company reported that it had sold the land and building housing its Tokyo flagship store located at 2-7-17 Ginza for the price of $328,000,000 (yen 38,050,000,000) and simultaneously entered into a long-term lease. Tiffany had purchased the property in 2003 for approximately $140,400,000 (U.S. dollar equivalent at the acquisition date). This latest transaction is expected to result in a pretax gain of approximately $104,000,000, or $.0.47 per diluted share after tax, which will be recorded in the Company's third quarter ending October 31, 2007, and a deferred gain of approximately $75,000,000 which will be amortized in SG&A expenses over a 15-year period. The transaction is not expected to have a significant effect on future earnings. The Company plans to use most proceeds from the sale for general corporate purposes, but intends to contribute $10,000,000 to The Tiffany & Co. Foundation in the third quarter. Mr. Kowalski said, "Tiffany has an established and respected presence in Japan and we are committed to further development and growth of our business there. In fact, we are finalizing plans for an exciting renovation of that important store and will share more details at a later date."

Commenting on the Company's full-year 2007 outlook, Mr. Kowalski added, "We are experiencing a good start to the third quarter with overall U.S. and international sales growth in August to-date achieving our expectations. In the coming months, we will be opening a number of new stores in attractive markets, while continuing to expand our product offerings with compelling new designs. Based on current conditions, our planned initiatives and a continued favorable retail environment, our financial performance expectations for fiscal 2007 call for (i) net sales growth of approximately 14%, (ii) an improved operating margin from continuing operations due to sales leverage on SG&A expenses and (iii) net earnings from continuing operations per diluted share in a range of $2.64 - $2.69 which includes the $0.47 per diluted share after-tax gain from the sale of the Tokyo store and the $0.05 per diluted share after-tax contribution to The Tiffany & Co. Foundation (excluding those two items, it equates to $2.22 - $2.27 per diluted share and compares with a previous expectation of $2.10 - $2.15 per diluted share). Including the charge related to the pending sale of Little Switzerland and its losses from operations, net earnings are expected to be in a range of $2.44 - $2.49 per diluted share."

Today's Conference Call

The Company will host a conference call today at 8:30 a.m. (EST) to review these results and its outlook. Investors may listen to the call at www.tiffany.com (click on "About Tiffany," "Shareholder Information," "Conference Call") and www.streetevents.com.

Next Scheduled Announcement

The Company intends to report its third quarter results on November 30, 2007 with a conference call at 8:30 a.m. (EST) that day, to be broadcast at www.tiffany.com and www.streetevents.com. To receive future notifications of conference calls and news release alerts, please register at www.tiffany.com (click on "About Tiffany," "Shareholder Information," "Calendar of Events" and "News by E-Mail").

Company Description

Tiffany & Co. operates jewelry and specialty retail stores and manufactures products through its subsidiary corporations. Its principal subsidiary is Tiffany and Company. The Company operates TIFFANY & CO. retail stores and boutiques in the Americas, Asia-Pacific and Europe and engages in direct selling through Internet, catalog and business gift operations. Other operations include consolidated results from ventures operated under trademarks or tradenames other than TIFFANY & CO. For additional information, please visit www.tiffany.com or call our shareholder information line at 800-TIF-0110.

This document contains certain "forward-looking" statements concerning the Company's objectives and expectations with respect to sales, store openings, operating margin and earnings. Actual results might differ materially from those projected in the forward-looking statements. Information concerning risk factors that could cause actual results to differ materially is set forth in the Company's 2006 Annual Report on Form 10-K and in other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.

Condensed Consolidated Statements Of Earnings

Condensed Consolidated Balance Sheets

Non-GAAP Measures

Contacts:
James N. Fernandez
(212) 230-5315
Mark L. Aaron
(212) 230-5301

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