UBS News Alert


UBS Warburg Implements Redefined Rating System

| Media Releases Global

UBS Warburg today announced that it has implemented its previously announced redefined rating system that provides greater clarity and detail in the firm's Equity Research recommendations to clients. The changes, first announced on October 23, 2002, go into effect globally across the 3,000 companies covered by UBS Warburg Equity Research.

"Our goal is to provide our clients with independent and thoughtful ideas," said Tom Hill, Global Head of Equity Research for UBS Warburg. "We believe the enhancements we have made will improve clients' understanding of our research conclusions and will be valuable to institutional and retail clients alike."

Each rating will consist of a recommendation in combination with a predictability level*.

* Recommendation - Each stock will continue to carry a price target that will determine predicted excess return over the current share price**. The recommendation will reflect the analyst's predicted excess return on the stock - "Buy" (greater than 15% excess return), "Neutral" (less than or equal to 15% and greater than or equal to - 15% excess return potential) and "Reduce" (less than - 15%).

* Predictability - The predictability level will reflect the degree of certainty an analyst has in his/her price target forecast. Predictability will be identified by a "1" (indicating higher predictability) or a "2" (indicating a lower predictability). Predictability will take into account uncertainty in cash flow estimates and uncertainty in discount rate estimates.

"By combining a simplified rating system with a predictability level, UBS Warburg has made the research process easier to understand and at the same time more comprehensive," said Alan Hodson, Global Head of Equities.

Analysts will continue to set price targets that they expect their shares to reach within a 12-month period.


Enquiries:

Amy Rosenberg, Media Relations +1 212-713-8510
Sam Smith, Media Relations +44 20 7568 9982

Notes to Editors

Predictability

Excess

Higher

Lower

Greater than 15%

Buy 1

Buy 2

Less than or equal to 15% and greater than or equal to -15% excess return potential

Neutral 1

Neutral 2

Less than -15%

Reduce 1

Reduce 2

UBS Warburg is a business group of UBS AG (NYSE: UBS), one of the largest financial services firms in the world with more than 69,000 employees in more than 40 countries. UBS Warburg is a leader in equities, corporate finance, M&A advisory and financing, financial structuring, fixed income issuance and trading, foreign exchange, derivatives and risk management. UBS Warburg is one of four business groups of UBS AG along with UBS PaineWebber, UBS Global Asset Management and UBS Wealth Management & Business Banking.

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