Exhibit 99.1
                                  TIFFANY & CO.
                                  NEWS RELEASE

Fifth Avenue & 57th Street                                Contacts:
New York, N.Y. 10022                                      ---------
                                                          James N. Fernandez
                                                          (212)230-5315
                                                          Mark L. Aaron
                                                          (212)230-5301

                     TIFFANY REPORTS SECOND QUARTER RESULTS;
                     ---------------------------------------
          COMPARABLE STORE SALES UP 5% IN U.S. AND 10% INTERNATIONALLY
          ------------------------------------------------------------

New York,  N.Y.,  August 31,  2006 - Tiffany & Co.  (NYSE:  TIF) today  reported
results for its fiscal second  quarter ended July 31, 2006.  Net sales growth of
9% was driven by increases in U.S. and international  comparable store sales. As
expected, net earnings declined primarily due to a prior-year tax benefit.

In the second  quarter,  net sales increased 9% to  $574,940,000,  compared with
$526,701,000 in the prior year. On a constant-exchange-rate basis which excludes
the effects of translating  foreign-currency-denominated sales into U.S. dollars
(see  attached  "Non-GAAP  Measures"  schedule),  net  sales  increased  10% and
worldwide comparable store sales rose 6%.

Net earnings in the second quarter were $41,144,000, or $0.29 per diluted share,
compared with  $50,551,000,  or $0.35 per diluted  share.  Earnings in the prior
year included a tax benefit of $6,600,000,  or $0.05 per diluted share,  related
to the  repatriation  provisions  of the  American  Jobs  Creation  Act of  2004
("AJCA"). Earnings before income taxes declined 4%.

In the  six-month  period  (first  half)  ended  July  31,  2006,  net  sales of
$1,114,181,000   were  7%  higher   than   $1,036,602,000   a  year  ago.  On  a
constant-exchange-rate  basis,  net sales increased 9% and worldwide  comparable
store sales rose 5%.

First half net earnings of  $84,286,000,  or $0.59 per diluted  share,  compared
with $90,609,000, or $0.62 per diluted share, in the prior year. Earnings in the
prior year included AJCA tax benefits of $8,100,000, or $0.06 per diluted share.
Earnings before income taxes increased 4%.

Sales by channel of distribution were as follows:
- -------------------------------------------------

     o    U.S.  Retail sales  increased 8% to $288,556,000 in the second quarter
          and 5% to  $549,136,000  in the first  half.  Comparable  store  sales
          increased 5% in the quarter but declined in July (quarterly sales rose
          5% in the New York flagship store and 4% in branch stores) and rose 2%
          in the first  half (New York  flagship  store  sales  declined  1% and
          branch store sales rose 2%). Comparable store sales growth in

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          the quarter resulted from higher spending per transaction. The Company
          operated  60  TIFFANY  & CO.  stores  in the  U.S.  at the  end of the
          quarter.

     o    International Retail sales increased 10% to $223,153,000 in the second
          quarter   and  12%  to   $438,317,000   in  the  first   half.   On  a
          constant-exchange-rate basis, sales rose 12% in the quarter and 16% in
          the first half due to 6% and 11% total  retail  sales  growth in Japan
          and  solid  growth  in  most  other  countries;  on that  same  basis,
          comparable  international store sales increased 10% in the quarter and
          13% in the first  half,  due to growth  of: 2% in the  quarter  (but a
          decline  in  July)  and 7% in the  half in  Japan;  27% and 24% in the
          Asia-Pacific  region  outside  Japan;  and 17% and 20% in Europe.  The
          Company operated 97 TIFFANY & CO.  international  stores and boutiques
          at the end of the quarter.

     o    Direct  Marketing  sales  increased 18% to  $35,742,000  in the second
          quarter and 11% to  $65,699,000  in the first half.  The  increases in
          both  periods  were due to growth in the  number of orders  and in the
          average amount spent per order.

     o    Other sales in the second  quarter  increased  4% to  $27,489,000  and
          sales of  $61,029,000  in the first half were equal to the prior year.
          LITTLE  SWITZERLAND  sales rose 10% and 3% in the respective  periods.
          The Company  continues to expand its IRIDESSE  stores,  which focus on
          pearl jewelry.

Other financial highlights were as follows:
- -------------------------------------------

     o    Gross profit as a percentage of net sales  ("gross  margin") was 55.1%
          in the second  quarter versus 55.5% in the prior year due to increased
          product costs. Gross margin was 55.5% in the first half versus 54.7% a
          year ago due to a favorable  shift in product sales mix, partly offset
          by  increased  product  costs.  The Company  recorded  LIFO  inventory
          charges of $8,101,000 in the second quarter (versus  $2,952,000 a year
          ago) and $9,467,000 in the first half (versus  $4,169,000 in the prior
          year).

     o    Selling,  general and administrative ("SG&A") expenses rose 12% in the
          second  quarter  and 10% in the first  half.  As a  percentage  of net
          sales,  SG&A expenses  were 42.5% in the quarter  (versus 41.4% a year
          ago) and 42.3% in the half (versus 41.1% in the prior year),  with the
          increases largely  reflecting higher  store-related  costs, as well as
          higher marketing-related costs in the first half.

     o    Effective tax rates were 38.9% in the second  quarter and 38.7% in the
          first half, compared with 28.0% and 31.5% in the prior year. The lower
          rates in the  prior-year  periods  reflected the  previously-mentioned
          AJCA tax benefits.

     o    Net  inventories  at July 31, 2006 increased 16% from a year ago. This
          increase   reflected   inventories   purchased  or   manufactured   in
          anticipation of new store openings and expanded  product  assortments,
          higher precious metal costs and expanded  internal  manufacturing  and
          diamond sourcing.


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     o    The Company  repurchased  and retired  2,525,135  shares of its Common
          Stock in the  second  quarter at a total  cost of  $83,839,000,  or an
          average  cost of $33.20  per share.  In the first  half,  the  Company
          repurchased  and  retired  4,704,407  shares of its Common  Stock at a
          total cost of $163,589,000, or an average cost of $34.77 per share. In
          a separate  announcement today, the Company reported that its Board of
          Directors has extended the expiration  date of its current  repurchase
          program  and   authorized  up  to  an  additional   $700  million  for
          repurchases.   Including  this  additional  authorization,   there  is
          approximately  $813 million available for future  repurchases  through
          December 2009.

     o    At July 31, 2006, the Company's balance sheet included:  cash and cash
          equivalents  of  $146,941,000   (versus   $128,611,000  a  year  ago),
          short-term   and   long-term   debt  totaling   $572,306,000   (versus
          $404,263,000 a year ago) and  stockholders'  equity of  $1,760,551,000
          (versus  $1,693,975,000  a year ago).  Total debt as a  percentage  of
          stockholders' equity was 33% at July 31, 2006 (versus 24% a year ago).

Michael J. Kowalski, chairman and chief executive officer, said, "We anticipated
these first half results due to  above-average  expense growth,  but they do not
reflect  Tiffany's  historical  performance or earnings power. Our ongoing plans
for store  openings  and new product  introductions  sustain our  confidence  in
Tiffany's ability to achieve higher rates of growth over the long-term."

He  added,  "Comparable  store  sales in  August-to-date  include  a  return  to
mid-single-digit  growth in the U.S.,  double-digit growth in many international
markets and a high-single-digit decline in Japan. For this third quarter, we are
looking for a mid-single-digit increase in earnings before income taxes, and net
earnings approximately equal to last year's 16 cents per diluted share which had
benefited from a lower effective tax rate due to favorable  reserve  adjustments
related to the expiration of certain statutory periods."

"Our  expectation  for the full year calls for a  low-double-digit  increase  in
earnings  before  income  taxes for 2006 and net  earnings in a range of $1.77 -
$1.82 per diluted share. This projection  assumes:  high-single-digit  net sales
growth, including mid-single-digit comparable store sales growth in the U.S. and
low-single-digit   growth  in  Japan  along  with  greater  increases  in  other
international regions;  gross margin approximately equal to the prior-year;  and
high-single-digit SG&A expense growth," Mr. Kowalski said.

Today's Conference Call
- -----------------------
The Company will host a conference call today at 8:30 a.m. (EST) to review these
results and its  outlook.  Investors  may listen to the call at  www.tiffany.com
(click on "About Tiffany,"  "Shareholder  Information,"  "Conference  Call") and
www.streetevents.com.

Next Scheduled Announcement
- ---------------------------
The Company anticipates reporting its third quarter results on November 29, 2006
with a  conference  call at  8:30  a.m.  (EST)  that  day,  to be  broadcast  at
www.tiffany.com and

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www.streetevents.com.  To receive  future  notifications  for  conference  calls
and/or news release alerts, please register at www.tiffany.com  (click on "About
Tiffany," "Shareholder Information," "Calendar of Events" and "News by E-Mail").

Company Description
- -------------------
Tiffany & Co.  operates  jewelry and specialty  retail  stores and  manufactures
products  through its  subsidiary  corporations.  Its  principal  subsidiary  is
Tiffany  and  Company.  The Company  operates  TIFFANY & CO.  retail  stores and
boutiques in the Americas, Asia-Pacific and Europe and engages in direct selling
through Internet, catalog and business gift operations. Other operations include
consolidated results from ventures operated under trademarks or tradenames other
than TIFFANY & CO. For additional  information,  please visit www.tiffany.com or
call our shareholder information line at 800-TIF-0110.

This document  contains  certain  "forward-looking"  statements  concerning  the
Company's  objectives and  expectations  with respect to sales,  store openings,
gross margins, expenses, earnings, earnings per share and assets. Actual results
might differ materially from those projected in the forward-looking  statements.
Information  concerning  risk factors that could cause actual  results to differ
materially is set forth in the Company's  2005 Annual Report on Form 10-K and in
other reports filed with the  Securities  and Exchange  Commission.  The Company
undertakes no obligation to update or revise any  forward-looking  statements to
reflect subsequent events or circumstances.



                                     # # #


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                         TIFFANY & CO. AND SUBSIDIARIES
                                   (Unaudited)

NON-GAAP MEASURES
- -----------------

The Company  reports  information  in accordance  with U.S.  Generally  Accepted
Accounting  Principles  ("GAAP").  Internally,  management  monitors  the  sales
performance of its  international  stores and boutiques on a non-GAAP basis that
eliminates  the  positive or  negative  effects  that  result  from  translating
international   sales  into  U.S.  dollars   ("constant-exchange-rate   basis").
Management believes this constant-exchange-rate measure is a more representative
assessment of the sales  performance of its  international  stores and boutiques
and provides better comparability between reporting periods.

The Company's  management  does not, nor does it suggest that investors  should,
consider such non-GAAP  financial measures in isolation from, or as a substitute
for,  financial  information  prepared  in  accordance  with GAAP.  The  Company
presents such non-GAAP  financial measures in reporting its financial results to
provide  investors with an additional  tool to evaluate the Company's  operating
results.

The following tables reconcile sales percentage  increases  (decreases), versus
the prior year, from the GAAP to the non-GAAP basis:




                                Second Quarter 2006 vs. 2005                       First Half 2006 vs. 2005
                         --------------------------------------------      ------------------------------------------
                                         Trans-      Constant-                              Trans-     Constant-
                             GAAP        lation      Exchange-                GAAP          lation     Exchange-
                            Reported     Effect      Rate Basis              Reported       Effect     Rate Basis
                         -------------- ------------- ---------------      -------------- ----------- ---------------
Net Sales:
- ----------
                                                                                       
Worldwide                     9%          (1%)          10%                    7%           (2%)           9%
U.S. Retail                   8%            -            8%                    5%             -            5%

Internatinal
 Retail                      10%          (2%)          12%                   12%           (4%)          16%
Japan Retail                  1%          (5%)           6%                    3%           (8%)          11%

Other Asia-
 Pacific                     23%           2%           21%                   21%             -           21%
Europe                       19%           3%           16%                   18%           (3%)          21%


Comparable Store Sales:
- ----------------------
Worldwide                     6%            -            6%                    4%           (1%)           5%
U.S. Retail                   5%            -            5%                    2%             -            2%

International
 Retail                       8%          (2%)          10%                    8%           (5%)          13%
Japan Retail                 (3%)         (5%)           2%                   (1%)          (8%)           7%

Other Asia-
 Pacific                     28%           1%           27%                   24%             -           24%
Europe                       20%           3%           17%                   17%           (3%)          20%







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                         TIFFANY & CO. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
               (Unaudited, in thousands, except per share amounts)





                                                                      Three Months                           Six Months
                                                                       Ended July 31,                        Ended July 31,
                                                       ------------------------------------  -------------------------------------
                                                                  2006              2005                2006              2005
                                                           --------------    --------------      --------------    ---------------
                                                                                                    
Net sales                                               $        574,940  $        526,701    $      1,114,181  $       1,036,602

Cost of sales                                                    257,962           234,617             496,077            469,697
                                                           --------------    --------------      --------------    ---------------

Gross profit                                                     316,978           292,084             618,104            566,905

Selling, general and administrative expenses                     244,342           218,016             471,221            426,526
                                                           --------------    --------------      --------------    ---------------

Earnings from operations                                          72,636            74,068             146,883            140,379

Other expenses, net                                                5,307             3,858               9,282              8,064
                                                           --------------    --------------      --------------    ---------------

Earnings before income taxes                                      67,329            70,210             137,601            132,315

Provision for income taxes                                        26,185            19,659              53,315             41,706
                                                           --------------    --------------      --------------    ---------------

Net earnings                                            $         41,144  $         50,551    $         84,286  $          90,609
                                                           ==============    ==============      ==============    ===============


Net earnings per share:

  Basic                                                 $           0.30  $           0.35    $           0.60  $            0.63
                                                           ==============    ==============      ==============    ===============

  Diluted                                               $           0.29  $           0.35    $           0.59  $            0.62
                                                           ==============    ==============      ==============    ===============


Weighted-average number of common shares:

  Basic                                                          139,170           142,989             140,556            143,618
  Diluted                                                        141,177           144,930             142,896            145,533













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                         TIFFANY & CO. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                            (Unaudited, in thousands)






                                                                   July 31,          January 31,              July 31,
                                                                       2006                 2006                  2005
                                                           -----------------    -----------------    ------------------
ASSETS
- ------
                                                                                             
Current assets:
Cash and cash equivalents                                   $       146,941      $       393,609      $        128,611
Accounts receivable, net                                            143,446              142,294               126,000
Inventories, net                                                  1,236,995            1,060,164             1,066,371
Deferred income taxes                                                80,404               69,576                72,084
Prepaid expenses and other current assets                            62,410               33,200                51,991
                                                               -------------        -------------        --------------

Total current assets                                              1,670,196            1,698,843             1,445,057

Property, plant and equipment, net                                  904,479              866,004               916,374
Other assets, net                                                   212,351              212,425               139,237
                                                               -------------        -------------        --------------

                                                            $     2,787,026      $     2,777,272      $      2,500,668
                                                               =============        =============        ==============

LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------

Current liabilities:
Short-term borrowings                                       $       142,215      $        38,942      $         22,966
Current portion of long-term debt                                     6,272                6,186                   -
Accounts payable and accrued liabilities                            199,301              202,646               178,322
Income taxes payable                                                 31,467               60,364                20,510
Merchandise and other customer credits                               57,577               56,472                51,491
                                                               -------------        -------------        --------------

Total current liabilities                                           436,832              364,610               273,289

Long-term debt                                                      423,819              426,548               381,297
Postretirement/employment benefit obligations                        42,876               41,982                40,778
Deferred income taxes                                                   935                    -                 9,790
Other long-term liabilities                                         122,013              113,219               101,539
Stockholders' equity                                              1,760,551            1,830,913             1,693,975
                                                               -------------        -------------        --------------

                                                            $     2,787,026      $     2,777,272      $      2,500,668
                                                               =============        =============        ==============











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