Industrial Holdings

In fourth quarter 2005, industrial holdings reported a net profit of CHF 197 million, of which CHF 150 million was attributable to UBS shareholders.

In fourth quarter 2005 we completed the sale of two fully consolidated investments. The operating profit or loss and gains on disposal are presented as discontinued operations for industrial holdings. Previous income statements have also been restated to reflect these divestments.

In fourth quarter, unconsolidated private equity investments, including those accounted for under the equity method, recorded total divestment gains of CHF 147 million. The level of financial investments available-for-sale fell to CHF 0.7 billion on 31 December 2005 from CHF 1.0 billion on 30 September 2005 due to a number of exits which were partially offset by the funding of existing commitments. The fair value of this part of the portfolio decreased to CHF 1.0 billion in fourth quarter from CHF 1.3 billion in third quarter. Unfunded commitments on 31 December 2005 were CHF 367 million, down from CHF 539 million at the end of September, primarily due to the exit from one investment.