Industrial Holdings

Starting in first quarter 2005, our private equity investments were reported as part of the Industrial Holdings segment, matching our strategy of de-emphasizing and reducing exposure to this asset class while capitalizing on orderly exit opportunities as they arise.

The segment also includes UBS’s majority stake in Motor- Columbus, a financial holding company whose most significant asset is a 59.3% interest in the Atel Group (Aare-Tessin Ltd. for Electricity). Atel, based in Olten, Switzerland, is a European energy provider focused on electricity trading and marketing, domestic and international power generation, electricity transmission and energy services. Motor-Columbus was consolidated into UBS’s accounts at the beginning of third quarter 2004. This led to a revaluation of assets and liabilities. These are no longer comparable with those previously published in Motor-Columbus’s separate consolidated financial statements.