10. Post Balance Sheet Event

Motor-Columbus

On 1 July 2004 UBS acquired from RWE, a German utilities company, its 20% ownership interest in Motor-Columbus AG (Motor-Columbus) for a cash consideration of approximately CHF 377 million. Together with the 35.6% interest already owned, UBS now holds a 55.6% majority interest in Motor-Columbus. Concurrent with the acquisition of the 20% stake in Motor-Columbus, UBS acquired RWE’s 1.23% direct interest in Aare-Tessin AG für Elektrizität (Atel), a subsidiary of Motor-Columbus, which was subsequently sold to Atel. Motor-Columbus is a Swiss holding company whose most significant asset is a 59.2% ownership interest in Atel, a Swiss group engaged in the production, distribution and trading of electricity. In complying with the Swiss takeover code, UBS made an unconditional tender offer to the minority shareholders of Atel to acquire their shares at a price of CHF 1,208 per share. The tender offer period expires on 11 August 2004. UBS has received written notification from a number of significant minority shareholders that they will not tender their Atel shares. Accordingly, the number of additional Atel shares tendered to UBS in the offer period is expected to be minimal.

UBS will consolidate Motor-Columbus, which includes Atel and its subsidiaries, as of 1 July 2004 using the purchase method of accounting. During the first six months of 2004, Atel had consolidated sales of CHF 3,450 million and shareholders’ equity of CHF 1,895 million at 30 June 2004, both unaudited. In 2003, Motor-Columbus had operating income of approximately CHF 5.4 billion and assets of approximately CHF 6.4 billion at 31 December 2003.

Giubergia

On 9 July 2004 UBS announced the acquisition of the minority stake in Giubergia UBS SIM, an Italian brokerage company, from Ersel, the partner in Giubergia UBS. The purchase price is subject to a formula set out in the joint venture agreement with Ersel, and is currently estimated to be approximately EUR 30 million calculated by reference to the entities’ projected results for the three years ending 31 December 2004. The transaction is subject to regulatory approval.

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