UBS strengthens wealth management in Germany

UBS Wealth Management AG, a German subsidiary of UBS, signed an agreement to acquire the private client business of Merrill Lynch in Germany. The move will enhance UBS’s profile in the German market for wealthy individuals and will strengthen its local client base. The acquisition is a further step — after the acquisition of Lloyds Bank S.A. in France in May — in a systematic effort to expand UBS’s European wealth management business. No details of the purchase price will be disclosed.

The German private client business of Merrill Lynch serves wealthy private clients in that country's market, specializing in the high net worth and ultra high net worth segments. As of 30 June 2003, the firm managed German client assets of USD 1.4 billion. It has 52 staff working at its two German offices in Frankfurt and Munich. The German activities of Merrill Lynch will be integrated into UBS Wealth Management AG by February 2004.

Jürg Zeltner, CEO and Chairman of the Management Board of UBS Wealth Management AG, said: "We are a reliable and experienced partner for high net worth individuals in Germany, because wealth management is a UBS core business. We offer our clients a leading-edge portfolio of structured advisory services as well as bespoke, integrated wealth management solutions targeted to meet their specific needs. The clients of Merrill Lynch will have access to our global product range and international expertise while at the same time being able to draw on our local advisory skills. They will thus benefit from the experience and knowledge of UBS as an integrated financial services institution and from our presence in the world's leading financial markets."

European wealth management is a key strategic focus for UBS. The bank's range of products and services, based on open architecture, is carefully adapted to fit the specific tax and legal requirements in each country and the varying demands and objectives of clients in its individual markets.

UBS Wealth Management AG is responsible for the bank’s wealth management activities in Germany. It has offices in Berlin, Bielefeld, Düsseldorf, Frankfurt, Hamburg, Munich, Offenbach and Stuttgart, and plans to open one in Cologne early next year. The subsidiary employs 703 people.

Ausaf Abbas, Head of Global Private Client for Merrill Lynch Europe, the Middle East and Africa, commented: "Following a strategic review of our private client business in Germany, we have decided to sell this operation to UBS. We believe that our clients will continue to receive the outstanding levels of service that they have come to expect, and in addition UBS will offer a more comprehensive array of products and services due to its strong local platform in Germany. This decision in no way affects our commitment to the rest of our European private clients who will continue to be served through our network of offices across the region.”

"Germany is a key focus for Merrill Lynch, and we plan to further strengthen our corporate, institutional and asset management businesses to build on the excellent foundations that we have established in Germany."


UBS
UBS is one of the world's leading financial firms, combining financial strength with a reputation for innovation and a global culture that embraces change.
UBS is the world's largest wealth manager, a premier investment banking and securities firm, and one of the largest global asset managers. In Switzerland, UBS is the market leader in retail and commercial banking.
UBS, headquartered in Zurich and Basel, employs almost 67,000 people, and has operations in over 50 countries and in all major financial centers.

Merrill Lynch
Merrill Lynch is one of the world’s leading financial management and advisory companies with offices in 36 countries and total client assets of approximately USD 1.4 trillion. As an investment bank, it is a leading global underwriter of debt and equity securities and strategic advisor to corporations, governments, institutions, and individuals worldwide. Through Merrill Lynch Investment Managers, the company is one of the world’s largest managers of financial assets, with assets under management of USD 473 billion. For more information on Merrill Lynch, please visit www.ml.com.

Zurich / Basel / Frankfurt, 31 October 2003
UBS