Industrial Holdings

In fourth quarter 2006, Industrial Holdings reported a net profit of CHF 345 million, of which CHF 352 million was attributable to UBS shareholders.

In the same quarter, we also completed the sale of two fully consolidated investments. The realized divestment gains are presented as discontinued operations for Industrial Holdings. Previous income statements have also been restated to reflect these divestments.

Private equity treated as "Financial Investments available-for-sale" achieved divestment gains of CHF 146 million in fourth quarter 2006, with writedowns of CHF 1 million. The level of these investments fell to CHF 344 million on 31 December 2006 from CHF 421 million on 30 September 2006 due to a number of exits which were partially offset by the funding of existing commitments. The fair value of this part of the portfolio decreased by 116 million to CHF 861 million in fourth quarter due to revaluations and successful divestments. Unfunded commitments on 31 December 2006 were CHF 227 million, down from CHF 260 million on 30 September 2006.