Financial Businesses Results

The fair value of shares granted in first half 2007 was CHF 1,926 million, up 16% from CHF 1,655 million granted in first half 2006. This was primarily driven by performance-related compensation rising with earnings.

The fair value of options granted in first half 2007 was CHF 437 million, down from CHF 508 million in the same period a year ago. The decrease reflects a 4% drop in the number of options granted and a lower fair value per option, reflecting changes in market parameters.

Most share-based compensation is granted in the first quarter of the year, with any further grants generally reflecting those made under the Equity Plus program, an ongoing employee participation program under which voluntary investments in UBS shares are matched with option awards each quarter. These amounts, net of estimated forfeited awards, will be recognized as compensation expense over the service period, which is generally equal to the vesting period. Most UBS share and option awards vest incrementally over a three-year period.