Notes (unaudited)

Note 14 Post-Balance Sheet Events

Share capital increase

On 23 April 2008, the Annual General Meeting of shareholders (the "AGM") approved a proposal that the Group strengthen its shareholders' equity by way of an ordinary capital increase with proceeds of approximately CHF 15 billion. The capital increase will be effected by issuing rights to UBS shareholders, which will allow them to subscribe for new registered shares in UBS AG at a subscription price and subscription ratio to be announced. The capital increase will result in an increase in share capital by a maximum amount of CHF 125,000,000 through the issuance of a maximum of 1,250,000,000 fully paid registered shares with a par value of CHF 0.10 each. The capital increase with proceeds of approximately CHF 15 billion is fully underwritten by a syndicate of banks, guaranteeing that all shares for which shareholders do not excercise their subscription rights will be sold and the full amount is paid. The newly issued shares will rank pari passu in all respects with the existing registered shares immediately upon issue.

Sale of investment in Adam Street Partners

On 5 May 2008, UBS Global Asset Management agreed to the sale of its 24.9% ownership interest in Adam Street Partners (ASP) to the remaining shareholders of ASP. The sale is conditional upon ASP obtaining financing for the purchase price. The cash consideration agreed amounts to approximately CHF 162 million (USD 156 million), which will be subject to customary post completion adjustments. The sale is expected to close in the second quarter of 2008. ASP was formed in January 2001 in connection with a management buyout of that business from Global Asset Management, with UBS retaining the now sold 24.9% stake. Global Asset Management will continue its close collaboration with ASP under an existing sub-advisory agreement in place since 2001.

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