Hong Kong, July 27, 2006, 02:00 PM

UBS Global Asset Management to purchase 51% of Daehan Investment Management Trust Company

UBS Global Asset Management has announced that it plans to enter into a stock purchase agreement with Daehan Investment & Securities Company (DI&S) to acquire 51% of Daehan Investment Management Trust Company (DIMCO), Korea’s largest asset management company. Under the joint venture, DIMCO will be known as UBS Hana Asset Management Company Ltd (UBS Hana Asset Management) internationally and as Hana UBS Asset Management in Korea. The transaction, which remains subject to regulatory approval, is expected to be completed within the third quarter of 2006.

At end June 2006, DIMCO managed more than USD20.5 billion (KRW19.5 trillion/CHF25.1 billion) of assets and is the clear market leader in the Korean asset management market. It is wholly owned by DI&S, which itself is wholly owned by Hana Financial Group.

UBS Global Asset Management will pay USD158 million (KRW150 billion/CHF193.4 million) for its stake immediately followed by a maximum USD31.6 million (KRW 30.0 billion/CHF38.7 million) earn-out over the next three years.

Since UBS will hold a 51% stake in the company, it will fully consolidate UBS Hana Asset Management from the date of acquisition, which is expected to close later in 2006.

Additional information will be made available following formal signing.

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