Industrial Holdings

In third quarter 2007, Industrial Holdings reported a net profit of CHF 255 million, with CHF 256 million attributable to UBS shareholders.

In third quarter 2007, we completed the partial divestment of a fully consolidated investment. The realized gain of CHF 89 million is presented as discontinued operations for Industrial Holdings.

Private equity treated as "Financial Investments available-for-sale" achieved divestment gains of CHF 170 million in third quarter 2007. The level of these investments fell to CHF 106 million on 30 September 2007 from CHF 265 million on 30 June 2007 due to a number of exits. The fair value of this part of the portfolio decreased by CHF 266 million to CHF 196 million in the quarter due to successful divestments and revaluations. Unfunded commitments on 30 September 2007 were CHF 79 million, down from CHF 109 million on 30 June 2007.

We made a CHF 38 million performance-related credit to the Investment Bank in third 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 units lines in Industrial Holdings and the Investment Bank, has no net impact on UBS's consolidated financial results.