Tax expense was CHF 464 million in fourth quarter 2005, making
an effective tax rate of 14.6% for the quarter. The full-year
tax rate decreased from 21.4% (20.1% pre-goodwill) in
2004 to 18.8% in 2005. The tax rate for full-year 2005 was
positively influenced by the absence of goodwill amortization
and the successful conclusion of tax audits in third and fourth
quarter. We believe that a tax rate of about 21% is a reasonable
initial estimate for 2006.