Industrial Holdings

In second quarter 2006, Industrial Holdings reported a net profit of CHF 121 million, of which CHF 115 million was attributable to UBS shareholders. Of the attributable net profit, CHF 56 million came from continuing operations and CHF 59 million from discontinued operations.

In second quarter 2006, we completed the sale of one of our fully consolidated investments. The realized divestment gain is presented as discontinued operations for Industrial Holdings. Previous income statements have also been restated to reflect this divestment.

Private equity treated as “Financial investments available-for-sale_ achieved divestment gains of CHF 119 million in second quarter 2006, with writedowns totaling CHF 6 million.

The level of these investments fell to CHF 565 million on 30 June 2006 from CHF 683 million on 31 March 2006 due to a number of exits that were partially offset by the funding of existing commitments. The fair value of this part of the portfolio was CHF 965 million in second quarter 2006, down slightly from 1,078 million in first quarter because of revaluations and successful divestments. Unfunded commitments on 30 June 2006 were CHF 278 million, down from CHF 323 million at 31 March 2006.