Harry Winston Diamond Corporation Announces Agreement to Sell its Luxury Brand Segment to The Swatch Group Ltd.

Harry Winston Diamond Corporation Announces Agreement to Sell its Luxury Brand
                       Segment to The Swatch Group Ltd.

  PR Newswire

  TORONTO, January 14, 2013

TORONTO, January 14, 2013 /PRNewswire/ --

Harry Winston Diamond Corporation (TSX:HW, NYSE:HWD) (the "Company") announces
today that it has entered into an agreement to sell its luxury brand diamond
jewelry and timepiece division, Harry Winston Inc., to The Swatch Group Ltd.
for US$750 million plus their assumption of up to US$250 million of pro forma
net debt.

Chairman and Chief Executive Officer, Robert Gannicott said, "At the time that
we purchased the Harry Winston brand, resource investment opportunities for
diamonds were rare and expensive following the euphoria of the Canadian
diamond discoveries, and the involvement of the large international mining
companies. The Harry Winston brand was competitively priced compared with its
peers and we could bring diamond expertise and strategic connections to
enhance value. Today there is a range of diamond resource opportunities while
the value of heritage luxury brands has increased dramatically. This
transaction represents a sound return on our original investment. It will
leave us well equipped to realize upstream opportunities in an environment
where cash has become a strategic resource while preserving and expanding our
relationship with the downstream diamond business."

The Swatch Group, with its unparalleled combination of expertise in both
engineering and brand management, is the perfect home for such a prestigious
brand. Under the terms of the purchase agreement, the Company has agreed to
trade under a new name as of the time of closing of the transaction and will
therefore change its name to Dominion Diamond Corporation. The Company will
retain an ongoing relationship with The Swatch Group, one of the world's
largest buyers of polished diamonds, in sourcing polished diamonds for them.
The two companies will also explore the opportunities for a joint diamond
polishing venture bringing together the manufacturing and diamond expertise of
the two companies.

After repayment of debt this transaction will net the Company US$750 million.
Rothschild advised the Company on the transaction and provided a fairness
opinion.

Nayla Hayek, Chairwoman of The Swatch Group Ltd., said, "Harry Winston
brilliantly complements the prestige segment of the Group. We are proud and
happy to welcome Harry Winston to the Swatch Group family - diamonds are still
a girl's best friend."

The transaction is subject to receipt of a variety of regulatory approvals and
other customary closing conditions.

Forward Looking Statement

This news release contains forward-looking information relating to the
proposed sale of the luxury brand diamond jewelry and timepiece division of
Harry Winston Diamond Corporation and other information or statements that are
not historical facts. Such forward-looking information is subject to important
risks, uncertainties and assumptions, including risks relating to the timing
of, and ability to satisfy, the necessary conditions to closing, including the
receipt of all necessary regulatory approvals. The results or events predicted
in forward-looking information may differ materially from actual results or
events. As a result, readers are cautioned not to place undue reliance on
forward-looking information, which speaks only as of the date of this
disclosure, and should not rely upon this information as of any other date.
While Harry Winston Diamond Corporation may elect to, it is under no
obligation and does not undertake to, update or revise any forward-looking
information, whether as a result of new information, further events or
otherwise at any particular time, except as required by law. Additional
information concerning factors that may cause actual results to materially
differ from those in such forward-looking statements is contained in Harry
Winston Diamond Corporation's filings with Canadian and United States
securities regulatory authorities and can be found at http://www.sedar.com 
and http://www.sec.gov , respectively.

About Harry Winston Diamond Corporation

Harry Winston Diamond Corporation is a diamond enterprise with premium assets
in the mining and retail segments of the diamond industry. Harry Winston
supplies rough diamonds to the global market from its 40 percent ownership
interest in the Diavik Diamond Mine.  The Company's luxury brand segment is a
premier diamond jeweler and luxury timepiece retailer with salons in key
locations, including New York, Paris, London, Beijing, Shanghai, Hong Kong,
Singapore, Tokyo and Beverly Hills.

The Company focuses on the two most profitable segments of the diamond
industry, mining and retail, in which its expertise creates shareholder value.
This unique business model provides key competitive advantages; rough diamond
sales and polished diamond purchases provide market intelligence that enhances
the Company's overall performance.

For further information: For more information, please visit 
http://www.harrywinston.com or for investor information, visit 
http://investor.harrywinston.com . Contacts:  Mr. Richard Chetwode, Vice
President, Corporate Development, +44(0)7720-970-762, 
rchetwode@harrywinston.com Ms. Laura Kiernan, Director, Investor Relations,
+1-917-297-4781,  lkiernan@harrywinston.com Ms. Kelley Stamm, Manager,
Investor Relations, +1-416-205-4380,  kstamm@harrywinston.com