Industrial Holdings

From this quarter, our private equity investments will be reported as part of the Industrial Holdings segment. This matches our strategy of de-emphasizing and reducing exposure to this asset class while capitalizing on orderly exit opportunities as they arise. Revised accounting standards have also required us to change the accounting treatment of some of our private equity investments. Due to the change, we have fully consolidated 12 of those investments and recognized another 10 under the equity method, two of which were sold during the first quarter 2005. The remaining parts of the private equity portfolio continue to be held as “Financial investments available for sale” (unconsolidated).

The Industrial Holdings segment also includes UBS’s majority stake in Motor-Columbus, a financial holding company whose most significant asset is a 59.3% interest in the Atel Group (Aare-Tessin Ltd. for Electricity). Atel, based in Olten, Switzerland, is a European energy provider focused on electricity trading and marketing, domestic and international power generation, electricity transmission and energy services. Motor-Columbus also holds several other finance and property companies. Motor-Columbus was consolidated into UBS’s accounts at the beginning of third quarter 2004. This led to a revaluation of assets and liabilities. These are no longer comparable with those previously published in Motor-Columbus’s separate consolidated financial statements.