Notes to the Financial Statements

In connection with a strategy review for its business, Wealth Management US is also in the process of reviewing office space planning. A first result of this review was the decision not to use office space rented by UBS under a long-term contract in a new building in New Jersey. On 20 July 2006, senior management approved a proposal to enter into a 10-year sublease contract with an external party for the unused office space. Under the terms of this contract, which was signed on 27 July 2006, the sublease income is not sufficient to cover the rent UBS pays under its original contract and costs incurred for arranging the sublease. UBS will record a provision of approximately USD 115 million (CHF 140 million) to cover the shortfall from this onerous lease contract in third quarter 2006. The majority of the charge for the provision will be borne by Wealth Management US and the remainder by Corporate Center.

The second quarter 2006 financial statements were authorized for issue on 10 August 2006 by the Board of Directors and the Audit Committee.