Notes to the Financial Statements

Wealth Management & Business Banking

During second quarter 2005, Wealth Management completed the acquisitions of Julius Baer North America, Etra SIM S.p.A. (Etra) and a part of Dresdner Bank Lateinamerika (DBLA) activities.

Julius Baer North America and Etra
On 1 April 2005, UBS acquired the assets of Julius Baer’s wealth management operations in North America. The business manages over USD 4 billion of client assets, including custodial assets, and employs approximately 50 staff in four locations. These operations have been integrated into Wealth Management to further strengthen UBS’s wealth management operations in the Americas.

Effective 31 May 2005, UBS acquired Etra, an independent Italian financial intermediary firm. Etra serves wealthy private and institutional clients in Italy and manages approximately EUR 400 million of client assets with 20 staff. The operations have subsequently been integrated into UBS’s Italian wealth management unit.

UBS paid an aggregate consideration of approximately CHF 94 million and recognized goodwill of CHF 78 million related to these two acquisitions.

Dresdner Bank Lateinamerika
On 21 December 2004, UBS announced that it signed an agreement to acquire wealth management operations from Dresdner Bank Lateinamerika for an aggregate consideration of approximately CHF 157 million, which includes incidental acquisition costs. On 29 April 2005, the acquisition of the activities located in Hamburg, which represent approximately two thirds of DBLA’s business, was completed. The closing for the remaining activities located in New York, Miami, Zurich and the Bahamas is expected to be completed at the end of 2005. Goodwill of CHF 101 million was recognized in connection with the Hamburg activities. The business managed invested assets from private clients worth EUR 4.2 billion at 31 December 2004. UBS will take on approximately 95 staff, who currently work for DBLA in this business. DBLA is active in all important Latin American markets and will strengthen UBS’s position as a wealth management service provider for clients of that region.

Global Asset Management

Siemens Real Estate Funds
Effective 1 April 2005, UBS expanded its asset management activities in Germany by acquiring a 51% stake in the real estate investment management business of Siemens Kapitalanlagegesellschaft mbH (SKAG), a subsidiary of Siemens AG, the German engineering conglomerate. The purchase price was CHF 69 million, allocated to identified net assets at fair value of approximately CHF 10 million and goodwill of approximately CHF 59 million. The business comprises three openend real estate funds with a total fund volume of approximately EUR 2 billion (as of 31 December 2004) and has been integrated into the global real estate business, giving it access to Global Asset Management’s established distribution network. The business was renamed UBS Real Estate Kapitalanlagegesellschaft mbH.