UBS to acquire Scott Goodman Harris

UBS has signed an agreement to acquire Scott Goodman Harris, a leading Independent Financial Advisor (IFA) targeting high net worth investors in the United Kingdom. The acquisition builds on UBS’s successful organic growth program, under which it has built its UK domestic business in four years to over £ 5 billion in invested assets and more than 100 client advisors. The combination of these businesses will further strengthen the competitive position of UBS in the UK wealth management sector. The acquisition of Scott Goodman Harris is expected to be completed in the second quarter 2004, subject to regulatory approval. No details of the purchase price will be disclosed.

Scott Goodman Harris largely serves executives and company directors, a core market for UBS's UK wealth management business. The company is a leader in advising clients on life and pensions products and comprises 28 people including 6 partners. As a result of the transaction, UBS will expand the scope of its advice to include these products for existing and new clients.

Jeremy Palmer, Managing Director and Head of UBS’s UK wealth management business, said: "Scott Goodman Harris is a leader in its field and it offers specialised advice to a client base which has a natural fit with our strategy. With this acquisition, UBS takes another important step in the growth of our UK franchise.”

Liz Cacciottolo, Managing Director and Head of UBS's local UK wealth management business, added: „The partners and employees of Scott Goodman Harris have shown a true commitment to delivering high quality independent advice to their clients. We share these values with them and are extremely pleased to add more high quality professionals to our rapidly growing UK business."

David Scott, Managing Partner of Scott Goodman Harris, commented: „We believe that our existing clients will benefit from access to UBS’s market-leading open architecture process offering advice across several asset classes. This will allow us to provide an even better service to our clients as well as working with UBS clients needing professional advice on life and pension products.”

The purchase of Scott Goodman Harris is a further step in the systematic expansion of UBS’s European wealth management business. Last week, UBS announced the acquisition of Laing & Cruickshank Investment Management Ltd in the UK from Crédit Lyonnais. The transaction, when completed, will add approximately £ 5 billion of client assets and 75 client advisors to the UK business. In October 2003, UBS acquired Merrill Lynch's German private client activities and, in May 2003, the French wealth management business of Lloyds TSB.

UBS in the UK has wealth management offices in London, Edinburgh, Manchester and Jersey. UBS's wealth management business has recently received several prestigious awards, including Best Global Private Bank and Best Private Bank in Western Europe, in the 2004 Euromoney Private Banking Survey.

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.

At the end of the fourth quarter 2003, UBS had CHF 46 billion in invested assets in its European wealth management business. As of December 31, 2003, UBS Wealth Management had CHF 701 billion in invested assets.

Zurich / Basel / London, 17 February 2004

UBS