UBS is cooperating fully with Hong Kong regulatory and law enforcement authorities. Based on the information available to it at this time, UBS believes that this is an unfortunate but isolated incident and will not result in loss to UBS or its clients.

While Tan is entitled to due process, he was suspended immediately pending the outcome of ongoing investigations.

In the interests of its clients and the integrity of its research product, UBS suspended and will review/reassign coverage of the stocks covered by Tan. In addition, all research produced by him was removed from the UBS investment research extranet site.

As a further precautionary measure, UBS has initiated an independent investigation of all Hong Kong research activities to ensure that this is an isolated incident and confirm the robustness of our internal controls and procedures.

Hong Kong, 27 February 2004
UBS