Note 11 Changes in organization

McDonald Investments' branch network

On 9 February 2007, UBS announced the completion of the acquisition of the branch network of McDonald Investments, a unit of KeyCorp. The cost of the business combination consisted of USD 222 million for the business operations including directly attributable transaction costs, and of USD 57 million for the net loans to customer portfolio of McDonald Investments, resulting in a total cash consideration paid of USD 279 million. The cost of the business combination was allocated to an intangible asset reflecting customer relationships of USD 47 million, remaining net assets of USD 60 million including the net loans to customer portfolios, and goodwill of USD 172 million. The total consideration and the allocation remain subject to adjustment. The unit provides comprehensive wealth management services to affluent and high net worth individuals, including estate planning, retirement planning and asset management and has been integrated into Wealth Management US.

Business combinations announced in 2007

Standard Chartered's mutual funds management business in India

On 26 January 2007, UBS announced the acquisition of Standard Chartered's mutual funds management business in India. The cost of the business combination is estimated to be USD 126 million and subject to purchase price adjustments includ­ing a reference to assets under management of the acquired business at closing date. The business will be integrated into Global Asset Management. The transaction is subject to regulatory approval and expected to close in third quarter 2007.