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Tax

In first quarter 2005, we incurred a tax expense of CHF 652 million, reflecting an effective tax rate of 20.2% for the quarter, compared to last year’s full-year rate of 21.5%. The decrease in the tax rate was mainly due to the absence of non-deductible goodwill amortization. 2004’s pre-goodwill tax rate was 20.1%. We believe that the tax rate in first quarter 2005 is a reasonable indicator of the rate for the year as a whole.

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