Industrial Holdings

In third quarter 2005, industrial holdings reported a net profit of CHF 174 million, of which CHF 128 million was attributable to UBS shareholders.

Of the investments fully consolidated in the period, we sold one and reached agreement to sell another. The operating profit and loss of both companies and gains on disposal of the company actually sold is presented as discontinued operations in this quarter’s income statement. Previous income statements have also been restated to reflect the change.

In third quarter, unconsolidated private equity investments, including those accounted for under the equity method, recorded total divestment gains for CHF 141 million and writedowns of CHF 39 million.

The level of financial investments available-for-sale fell to CHF 1.0 billion on 30 September 2005 from CHF 1.2 billion on 30 June 2005 as a number of exits were partially offset by the funding of existing commitments. The fair value of this part of the private equity portfolio decreased to CHF 1.3 billion in third quarter 2005 from CHF 1.6 billion in second quarter. Unfunded commitments on 30 September 2005 were CHF 539 million, down from CHF 668 million at the end of June.