The production capacity of integrated watch modules was increased during the year under review. These modules are used, for example, in the manufacture of Longines V.H.P. (Very High Precision) watches. At the same time, developments with miniature real-time clocks, as well as experience gained in this field, are helping Micro Crystal to significantly increase the accuracy of its integrated watch modules. The integration of quartz and an integrated circuit in the same package, along with temperature compensation and other environmental influences, will soon enable Swatch Group brands to produce even more accurate quartz watches. The improved miniature integrated watch modules have extremely low power consumption, which guar- antees long watch battery life. This progress in development was only possible thanks to the close cooperation between Micro Crystal and its sister companies EM Microelectronic and ETA Manufacture Horlogère Suisse.