Important Events:
Switzerland and the World

Important Events:
UBS AG

The clocks move seamlessly from 1999 to 2000 and the fearsome Millennium Bug - older software programmes did not contain a four-digit year format and might crash when the new century began - does not strike.

On 21 January accounts at various Swiss banks containing 645 million USD of hot money belonging to former Nigerian dictator Abacha are blocked, damaging Switzerland’s image as a financial centre.

Several US Internet services are brought to a standstill by hackers on 7 February.

In Germany the world's largest financial institution is set to be created following the announcement of a merger between Deutsche Bank and Dresdner Bank on 7 March. The new entity would have a balance sheet value of 2080 billion CHF. On 5 April the merger collapses over incompatible views on investment banking.

In March prices of much coveted technology stocks fall worldwide.

On 23 March the German and US governments agree on a total 10 billion deutschmarks to be paid by Germany's industry and state in compensation to former forced labourers of the Second World War.

Vladimir Putin wins the Russian presidential elections on 26 March.

On 3 May Deutsche Börse and the London Stock Exchange announce they are to merge, forming Europe's largest stock exchange under the iX (International Exchange) name.

The e-mail virus "I love you” from Manila causes billions of dollars of damage worldwide on 4 May.

On 21 May the Swiss vote with a majority of 67.2% in favour of bilateral agreements with the EU May 21).

In May Swiss unemployment drops below 2% for the first time since 1992 whereas the average for the year 2000 falls to 72'000 or 2% , its lowest level since 1991 (December).

A US judge rules that Microsoft will have to split into two companies, one for operating systems, the other for applications (June 7).

On 14 June in Pyongyang the heads of government of the two Koreas hold a summit meeting for the first time since the country was split into separate states in 1953.

At the EU summit in Feira, Portugal, member states agree to a tax compromise intended to bring an end to banking secrecy, which could have consequences for Switzerland (June 20).

On 22 June the Financial Action Task Force on Money Laundering (FATF) designates Liechtenstein a non-cooperative jurisdiction in the fight against money laundering.

On January 17 UBS commences its share buy-back program leading to a cancellation of shares which takes place over a second trading line on the SWX Swiss Exchange.

With immediate effect from February 18, UBS AG consists of three main businesses: UBS Switzerland, UBS Asset Management and UBS Warburg.

	Stephan Haeringer

UBS Switzerland, led by Stephan Haeringer is composed of the two divisions Private and Corporate Clients business and onshore and offshore Private Banking services offered in Switzerland and in major international offshore centers.

Georges Gagnebin

Georges Gagnebin is CEO Private Banking,

	Markus Granziol

whereas UBS Warburg is under the leadership of Markus Granziol

Peter Wuffli

and UBS Asset Management is headed by Peter Wuffli.

Brinson Partners (Chicago) and Phillips & Drew (London) join forces in Investment Management and combine their investment management and research resources to establish a common global platform with over 600 investment specialists in all major financial centers worldwide (March 2).

UBS net profit of 6.3 billion CHF for the 1999 financial year is announced on March 9, 2000. Headcount within the Group rose to 49'058 and total shareholder's equity was 34,8 billion CHF.

At the Annual General Meeting held on 18 April, UBS shareholders approved the 1999 Annual Report and financial statements and granted discharge to the Group's corporate bodies. It approved the Board of Directors' proposal to increase the dividend by 1 CHF to 11 CHF per share and a 2:1 split of UBS registered shares (new par value is 10 CHF, from 20 CHF).

UBS Global Shares listed on New York Stock Exchange begin trading on May 16. UBS is the first non-US financial services group to list its Global Registered Share directly on the NYSE. It provides UBS with the strategic flexibility to benefit from potential expansion opportunities in the United States.

The "Bürgenstock-Hotels" in central Switzerland are sold to a group of foreign investors, represented by Banque de patrimoine privés Genève bpg S.A., Geneva, on May 16.

UBS sells its stake in Swiss National Insurance Company (21.June). At this time, it held 28,3% of National's nominal share capital.

On 25 July at Camp David in the US, the Middle East peace talks between Israel and Palestine are broken off, resulting in serious clashes in the occupied territories and Israel, lasting into the new year.

On 26 July in New York judge Edward Korman approves the 1.25 billion USD settlement between Swiss banks and Jewish organisations and plaintiffs in the class action law suit. He also requires Swiss companies to report whether they had employed forced labour in the Second World War. The planned distribution of payments to the various plaintiff groups is approved on 22 November. The Swiss Bankers Association is to publish a list of names on the Internet of the holders of dormant and closed accounts dating from Second World War who may have been victims of the Holocaust.

Credit Suisse Group takes over US investment bank Donaldson, Lufkin & Jenrette on 30 August for 19.7 billion CHF.

The price of oil climbs to a high of 36 USD per barrel, leading OPEC to increase production on 11 September.

Chase Manhattan Bank announces the takeover of J.P.Morgan on 13 September.

The US financial year closes at the end of September with a surplus of 237 billion USD.

The US presidential elections of 7 October turn into a head-to-head between the Democratic vice-president Al Gore and the Republican George W. Bush. A US Supreme Court ruling on 13 December finally puts an end to the long drawn-out dispute over vote recounts. Although Gore receives 333'000 more votes than Bush in the country as a whole, Bush wins 271 electoral votes.

The Chernobyl nuclear power station in the Ukraine is finally decommissioned, 14 years after the disaster.

UBS endorses the United Nations initiative "The Global Compact" and ratified a group-wide environmental policy focusing on banking, in-house ecology and environmental mangement (July 26).

Marcel Ospel and Don Marron

"UBS to merge with PaineWebber" was the top head-line for UBS in the year 2000. It was announced on July 12 and approved by an Extraordinary General Meeting of Shareholders of UBS on September 7 as well as a meeting of the shareholders of PaineWebber on October 23. On November 3, the merger was completed. The total cost of the transaction was 11.8 billion USD. At that time, PaineWebber is the fourth largest private client firm in the US with 8554 brokers in 385 offices.

Sports and Entertainment Group (SEG) is launched on July 14. Private Banking clients are increasingly seeking customized solutions and targeted professional advice covering their whole life-cycle. UBS addresses this challenge by setting up special advisory teams for the different needs of specific client groups.

On August 17, UBS e-banking clients who use UBS PIN software became target of a virus attack. No damages were reported.

UBS sells Solothurner Bank (SoBa) to Bâloise Insurance by complying with a condition set out by the Swiss Competition Commission as a result of the merger between Swiss Bank Corporation and Union Bank of Switzerland in 1998. Based in the town of Solothurn, SoBa operates 19 branches. The transaction is due to be finalized in autumn of the year 2000 (August 22).

The Financial Services Agency (FSA) commences a routine inspection of the UBS Group in Japan on August 24 as a consequence of its presence for more than 30 years. It includes controls, risk management and compliance procedures.

For the realisation of Eurogate, the major development planned in the vicinity of Zurich main station, an architectural competition for the residential area is commissioned with the City of Zurich and UBS, who is assuming responsibility and therefore acting as developer and investor. Eurogate will accomodate up to 500 apartments, offices, light industrial and leisure space (September 1).

UBS launches e-banking WAP for all e-banking clients, making it one of the first banks in Europe to enable stock-market orders to be issued on over 80 stock exchanges via WAP mobile phones by September 5. The service also allows foreign exchange transactions, account transfers and account information.

UBS announces the issuing of 1.25 billion USD in capital securities in the form of trust preferred securities. This global offering has a perpetual maturity with a call and step-up option in year ten (September 20).

The first US public offering for UBS AG - 1.5 billion USD Trust Preferred Securities - is announced on October 3.

	Luqman Arnold

Alex Krauer, Chairman of UBS AG, advised the Board of Directors of his decision to step down after the 2001 Annual General Meeting of Shareholders. The Board will propose Marcel Ospel, Group CEO, to succeed him and that the Board be internationalized. Luqman Arnold, Group Financial Officer, was elected by the Board as the new President of the Group Executive Board remaining Head of the Corporate Center and thus continue to have direct responsibility for the Group’s finance and risk functions (October 11).

The “Wolfsberg AML Principles„ are presented to the public as a set of global anti-money laundering guidelines for international banks. They were jointly announced on October 30 by 11 banks, among them UBS, and by "Transparency International", the global anti-corruption organization. An important working session to formulate the guidelines was held in Wolfsberg, Switzerland, and accordingly the new guidelines are known as the "Wolfsberg Principles".

On November 2, UBS announces share issuance plans in connection with its merger with PaineWebber (12 million ordinary shares from authorized capital and the re-issuance of 7 million shares held in Treasury).

Fondvest AG, an asset management company specializing in independent advisory and distribution services in the fund business, is acquired by UBS (November 7). The company offers access to over 1600 investment funds from 60 domestic and foreign fund providers. It is based in Zurich, and employs 35 people.

UBS is the first Swiss financial institution to offer its business clients a fully electronic billing cycle between billers, recipients and their bank, using PayNet, an electronic payment services software, developed by UBS and other Swiss financial institutions (November 16).

The UBS Art Award for the year 2000, the first of its kind, goes to Martina Gmür, University of applied sciences, Basel, Switzerland. This Award is an international art competition in which graduating students from 20 art colleges in ten countries were invited to participate. Supporting young artists reflects the commitment of UBS Private Banking to promoting young talents and to contributing to the painting of tomorrow (December 8).

A number of Top Management changes at UBS are announced on December 14 for Group Executive Board (GEB), UBS Warburg and UBS Switzerland.

Joseph J. Grano

Joseph J. Grano, President and CEO of PaineWebber, President and CEO of the Private Clients and Asset Management division in UBS Warburg will join GEB as per January 2001.

Start of UBS Fund Solutions, - defined as "Screened Offering" - a new strategy for offering the best investment fund providers and investment funds from the entire fund universe to clients (December 12).

UBS sells real estate company Nurestra AG (31 residential properties in Switzerland) to a group of private investors (December 15). Real estate company Impris AG is sold to the foreign Whitehall company on December 1 (13 commercial properties). The prices of both transactions are not disclosed.