Zurich / Basel, October 2, 2008, 07:00 AM

UBS holds EGM: key messages from Chairman

At the Extraordinary General Meeting in Basel today, UBS Chairman Peter Kurer will give a speech highlighting the following key messages:

Despite recent extremely volatile market conditions, UBS currently expects to report a small profit for the third quarter, based on preliminary estimates. The bank also substantially reduced its US commercial and residential mortgage-related positions, mainly through disposals.
Following the AGM in April 2008, the Board of Directors completed its governance work. Clear role profiles and expectations have been defined for all Board members and Board Committees. The changes have established a model of clarity and accountability in the governance of UBS.
UBS completed its strategy review, created three autonomous business divisions and vested them with increased operational authority and accountability. On this basis, UBS has also started a change program to reposition the bank for the future.
UBS also developed a remediation plan to address the lessons learned from the credit crisis. Substantial progress has been made in the meantime. Personnel changes have been made in key positions; how UBS determines and allocates risk capacity is being adjusted; the risk function has been reconfigured; and significant refinements have been made to the way the bank measures and evaluates risk.
2009 will be an overall profitable year. UBS, at all times, wants to maintain a strong capital base, adequate liquidity and a reduced, solid balance sheet.

UBS will publish full details of its finalized results as planned on November 4, 2008.

FORWARD-LOOKING STATEMENTS

This release contains statements that constitute “forward-looking statements”, including but not limited to statements relating to UBS’s business and future business development and economic performance and UBS’s intentions with respect to equity-raising. While these forward-looking statements represent UBS’s judgments and future expectations concerning the development of its business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from UBS’s expectations. These factors include, but are not limited to (1) the extent and nature of future developments in the United States subprime market and in other market segments that have been affected by the current market crisis; (2) other market and macro-economic developments, including movements in local and international securities markets, credit spreads, currency exchange rates and interest rates, whether or not arising directly or indirectly from the current market crisis; (3) the impact of these developments on other markets and asset classes; (4) changes in internal risk control and in the regulatory capital treatment of UBS’s positions, in particular those affected by the current market crisis; (5) limitations in the effectiveness of UBS’s internal risk management processes, of its risk measurement, control and modeling systems, and of financial models generally; (6) developments relating to UBS’s access to capital and funding, including any changes in UBS’s credit ratings; (7) changes in the financial position or creditworthiness of UBS’s customers, obligors and counterparties, and developments in the markets in which they operate; (8) management changes and changes to the structure of UBS’s Business Groups; (9) the occurrence of operational failures, such as fraud, unauthorized trading and systems failures; (10) legislative, governmental and regulatory developments; (11) competitive pressures; (12) technological developments; and (13) the impact of all such future developments on positions held by UBS, on its short-term and longer-term earnings, on the cost and availability of funding and on UBS’s BIS capital ratios.

In addition, these results could depend on other factors that we have previously indicated could adversely affect our business and financial performance which are contained in other parts of this document and in our past and future filings and reports, including those filed with the SEC. More detailed information about those factors is set forth elsewhere in this document and in documents furnished by UBS and filings made by UBS with the SEC, including UBS’s Annual Report on Form 20-F for the year ended 31 December 2007. UBS is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.