Zurich / Basel, December 2, 2005, 06:00 PM

UBS completes sale of Private Banks & GAM unit to Julius

UBS today completed the sale of its Private Banks & GAM unit to Julius Baer for CHF 6.1 billion, resulting in a post-tax disposal gain of approximately CHF 3.8 billion.

UBS successfully completed the sale of its Private Banks & GAM unit to Julius Baer for CHF 6.1 billion. In accordance with the terms of the transaction agreement, this sum is comprised of:

The delivery of a 21.5% financial stake in the enlarged Julius Baer (24 million shares). Based on the Julius Baer opening price of CHF 94.1 per share as of 2 December 2005, the stake has a total value of CHF 2.3 billion;
CHF 3.575 billion of cash and CHF 225 million in Tier 1 preferred securities. The cash amount includes a pre-closing dividend by Private Banks & GAM and the substitution by Julius Baer of the previously anticipated CHF 625 million senior debt instruments.

As a result of the settlement of options which UBS granted certain executives of SBC Wealth Management Group, UBS's stake of 21.5% of the enlarged Julius Baer Group will be reduced by 0.8%.

UBS will record a post-tax disposal gain of approximately CHF 3.8 billion which will be booked in UBS's fourth quarter 2005 results. The disposal gain as well as the operating result of the Private Banks & GAM unit will be presented as discontinued operations in UBS's income statement.

UBS will not take a seat on Julius Baer's board of directors or exercise any control or influence on its strategy or on its operational decisions, nor vote its shares. Accordingly, UBS's 20.7% stake in the enlarged Julius Baer will be accounted for as a financial investment available-for-sale.

UBS