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.