Industrial Holdings

In second quarter 2005, industrial holdings reported a net profit of CHF 90 million, of which CHF 36 million was attributable to UBS shareholders.

At the end of second quarter 2005, we sold one of our private equity investments previously fully consolidated according to IAS 27. The performance of this divested company and the loss from its divestment is presented under “Net profit / loss from discontinued operations” in the Group income statement.

Private equity treated as “Financial investments availablefor- sale” realized divestment gains of CHF 124 million in second quarter 2005, with writedowns totaling CHF 14 million.

The level of these investments was unchanged at CHF 1.2 billion on 30 June 2005 compared to three months earlier as exits were offset by the funding of existing commitments. The fair value of this part of the portfolio increased to CHF 1.6 billion in second quarter 2005 from CHF 1.5 billion in first quarter. Unfunded commitments on 30 June 2005 were CHF 668 million, down from CHF 744 million at the end of March.