March 25, 2008 Dear Stockholder: We invite you to attend the upcoming Annual Meeting of Stockholders of Tiffany & Co. on Thursday, May 15, 2008 at 10:00 a.m. in the Roof/Penthouse of The St. Regis Hotel, 2 East 55th Street at Fifth Avenue, New York, NY. Your participation in the affairs of Tiffany & Co. is important. Therefore, whether or not you are able to attend, please vote your shares as soon as possible by completing and returning the enclosed proxy card, by calling the telephone number listed on the card or by accessing the Internet site to vote electronically. 2007 was a year of major achievement for Tiffany & Co. In addition to strong operating performance from continuing operations, we launched two bold initiatives to address significant strategic opportunities. First, we forged a landmark strategic alliance to develop TIFFANY & CO. as a globally recognized and distributed luxury watch brand. Second, we developed and are preparing to deploy a new, smaller store format that will allow us to broaden our store expansion plans and profitably reach more consumers in the United States. Details of these important developments follow a review of 2007 operating performance. Net sales in fiscal 2007 increased 15% to $2.9 billion. x U.S. Retail sales rose 11% and Direct Marketing sales rose 5%. Sales growth began to slow in the second half as consumer confidence waned in the face of developing economic news. x International Retail sales increased 19%. We achieved this through strong growth in the Asia-Pacific region outside of Japan and in Europe, continuing our transition from a U.S.-focused retailer with a business in Japan to a geographically diversified network capable of achieving robust and consistent consolidated growth despite softness in individual national markets. x In total, worldwide comparable store sales rose 7% on a “constant-exchange-rate basis” which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars. 2007 was also another active and successful year for store expansion. We increased our store count by six in the U.S. and by 11 locations outside the U.S. We will continue on that pace in the U.S. and accelerate expansion in Europe and Asia-Pacific in 2008. Other highlights of our distribution expansion program were: x Our new store at 37 Wall Street is a landmark in two senses: it is an architecturally stunning store in a historic location and it is our first branch store in New York City. We are more than pleased with its initial performance. 727 FIFTHAVENUE NEW YORK, NEW YORK 10022 212 755 8000 MICHAEL J. KOWALSKI CHAIRMAN OF THE BOARD CHIEF EXECUTIVE OFFICER , of the year

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