Notes to the Financial Statements (unaudited)

UBS AG’s (“UBS”) consolidated financial statements (“Financial Statements”) are prepared in accordance with International Financial Reporting Standards (IFRS) and stated in Swiss francs (CHF). These “Financial Statements” are presented in accordance with IAS 34 Interim Financial Reporting. In preparing the interim “Financial Statements”, the same accounting principles and methods of computation are applied as in the “Financial Statements” on 31 December 2004 and for the year then ended except for the changes set out below. The interim “Financial Statements” are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods have been made. These interim “Financial Statements” should be read in conjunction with the audited “Financial Statements” included in the UBS Financial Report 2004.

UBS sponsors the formation of companies, which may or may not be directly or indirectly owned subsidiaries, for the purpose of asset securitization transactions and to accomplish certain narrow and well-defined objectives. These companies may acquire assets directly or indirectly from UBS or its affiliates. Some of these companies are bankruptcy-remote entities whose assets are not available to satisfy the claims of creditors of UBS or any of its subsidiaries. Such companies are consolidated in the “Financial Statements” when the relationship between UBS and the company indicates that it is controlled by UBS.