Industrial Holdings

In fourth quarter 2007, Industrial Holdings reported a net profit attributable to UBS shareholders of CHF 32 million.

UBS completed the divestment of one of the remaining fully consolidated investments in fourth quarter 2007. The realized gain of CHF 8 million is presented in discontinued operations for Industrial Holdings. Previous income statements have also been restated to reflect the divestment.

Private equity treated as "Financial Investments available-for-sale" achieved divestment gains of CHF 15 million in fourth quarter 2007. The level of these investments fell to CHF 92 million on 31 December 2007, from CHF 106 million on 30 September 2007, due to a number of exits. The fair value of this part of the portfolio decreased by CHF 28 million to CHF 168 million in the fourth quarter due to successful divestments. Unfunded commitments on 31 December 2007 were CHF 67 million, down from CHF 79 million on 30 September 2007.

Industrial Holdings made a CHF 4 million performance-related credit to the Investment Bank in fourth quarter 2007. This was to compensate the Investment Bank for its efforts in helping 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.

In full-year 2007, Industrial Holdings reported a net profit of CHF 636 million, of which CHF 586 million is attributable to shareholders. A year earlier, net profit was CHF 1,108 million, of which CHF 1,004 million was attributable to shareholders.

The net profit result in 2007 is shown after transfers of CHF 118 million to the Investment Bank while the 2006 net profit result included a CHF 458 million gain from the sale of UBS's stake in Motor-Columbus.