Industrial Holdings

In second quarter 2007, Industrial Holdings reported a net profit of CHF 203 million, of which CHF 211 million was attributable to UBS shareholders. In first half 2007, pre-tax operating profit from continuing operations was CHF 409 million.

We booked a CHF 76 million performance-related credit to the Investment Bank in second quarter 2007 to compensate it for efforts in helping to dispose of certain private equity investments, which had been transferred from the Investment Bank in 2005. The credit, recorded in the respective services (to)/from other business unit lines in Industrial Holdings and the Investment Bank, has no net impact on UBS's consolidated financial results.

Private equity treated as "Financial Investments available-for-sale" achieved divestment gains of CHF 383 million in second quarter 2007, with writedowns of CHF 1 million. The level of these investments fell to CHF 265 million on 30 June 2007 from CHF 283 million on 31 March 2007 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 CHF 231 million to CHF 462 million in the quarter due to successful divestments and revaluations. Unfunded commitments on 30 June 2007 were CHF 109 million, down from CHF 219 million on 31 March 2007.