PICTET & CIE IS NOT ACCUSED OF BEING IN BREACH OF US LAWS AND IS NOT BEING TARGETED BYTHE US TAX AUTHORITIESHaving noted the content of articles published in
Le Matin Dimanche
on 6May 2012, Pictet & Cie wishes to make it clear that is not being accused by the US authorities of being in breach of the law of that country. Moreover, we vigorously refute any allegation that Pictetis being targeted by the US tax authorities.The Qualified Intermediary Agreement (QI), which regulates the documentation for clients holdingUS securities, came into force in 2001. Since that time, Pictet has always scrupulously complied withthese regulations.Furthermore, as Pictet is actively developing the market for US-resident clients through its Securitiesand Exchange Commission (SEC)-approved subsidiary Pictet North America Advisors S.A., it is all themore important for our bank to ensure that US tax legislation is rigorously complied with.Abiding by the legal and regulatory provisions in force is a matter of course for Pictet, and it submitsto such legislation regardless of the country concerned. Indeed, compliance with legislation forms anintegral part of the Bank’s responsibilities vis-à-vis its clients.The affair reported in the Sunday newspapers was the subject of a request to Pictet foradministrative cooperation from the US authorities in September 2010, via the Swiss Federal TaxAdministration. In November 2010, Pictet handed over the complete file on this affair, once again viathe Swiss Federal Tax Administration. Since handing over this information, Pictet has not been askedto provide any further information, either by the Swiss Federal Tax Administration or by the USauthorities.The indictment of three individuals for tax evasion by the US District Court of Arizona, to which weare not party, refers to our Bank only as "Swiss Bank A", thereby confirming that we are not beingtargeted by these proceedings.The relationships in question were opened in 2007 by an external asset manager on behalf of twoSwiss companies that were set up without any involvement on our part. We complied both with ourdue-diligence obligations vis-à-vis the Swiss authorities and also our requirements regardingdocumentation for the US authorities (QI Agreement).