Progress Watch Corporation (PROW) Signs 7-digit Contract for Delivery of the 3-Axial START-Tourbillon-Movement

Progress Watch Corp. (Pink Sheets:PROW) announces that it has
entered into an agreement with a well known international luxury brand
to provide its mechanical START-Tourbillon watch movement. The
international luxury brand will present the finished product including
the mechanical START-Tourbillon watch movement as its new mechanical
Masterpiece at the annual watch fair Baselworld 2008.

This agreement is a first result of the interest shown by the
watch-industry in the START-Tourbillon watch movement.

Progress Watch Corp. will deliver the START Tourbillon
individualized to the brands in a Swiss Made version.

The START (See-though Triple Axis Rotating Tourbillon) is a
patented mechanical watch movement of the highest level. It indicates
the time directly. Once a minute the Tourbillon cage is turning and
indicate the seconds. The escapement system and a part of the
transmission system is turning vertical once in hour and indicates the
minutes on a drum. The same time, but once in 12 hours the whole
Tourbillon-bridge is doing one circle and indicating the hours by
means of a hand.

Progress Watch Corporation (PROW) is a company dedicated to
independently provide high end, innovative, reliable, stable, flexible
and unique mechanical watch movements to the watch industry.

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.