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UBS launches Asian Treasures SUPER Note

| Media Releases APAC

UBS today launched the Asian Treasures SUPER Note linked to a basket of stocks listed on five of the leading stock markets in Asia. The Note's coupon linked to the performance of the stocks. With 100% of the principal protected, the Notes feature a step-up coupon after the first year.

From years two to six, the coupon of the seventh in UBS's SUPER Note series, is directly linked to the stocks in the basket. The better the performance of the stocks in the basket, the better the coupon with at least a 1.0% per annum coupon each year giving a minimum total return of 10% at maturity.

From year two, if the closing prices of all the stocks in the basket are at or above their respective 'barrier levels' as at the coupon calculation date, instead of the aforementioned coupon, a step-up coupon will be paid. If it occurs at any year between two and five, the Notes will be mandatorily early redeemed. If it occurs at the end of year two, the potential step-up coupon is 6.0% and increases by 6.0% each year thereafter if it occurs in subsequent years.

"The instruments offer potentially good return potential. If on any coupon calculation date in years two to five, the closing prices of all the stocks in the basket have never been at or above their respective barrier levels, the step-up coupon will accumulate each year at the rate of 6.0% per annum and can stack up to a maximum of 30% at maturity if the closing prices of all the stocks in the basket are at or above their respective barrier levels at maturity," said Min PARK, Head of Equity Risk Management at UBS, Asia.

"Stocks in the basket are blue chip names with an average market capitalisation of US$32 billion. Furthermore, each stock was selected with at least 81%'buy' or 'hold' recommendation as displayed on Bloomberg as of 5 October 2004," added Christopher F LEE, head of UBS's Equity Risk Management Intermediary desk.

The new instruments are available for subscription by retail investors in Hong Kong from 11th October until 29th October.

Bank of China (Hong Kong) Limited, Nanyang Commercial Bank Limited, Chiyu Banking Corporation Limited, The Bank of East Asia Limited, Wing Lung Bank Limited, Wing Hang Bank, Limited, Bank of Communications, Hong Kong Branch, Standard Chartered (Hong Kong) Limited, Dah Sing Bank Limited, Mevas Bank, Limited and Sun Hung Kai Investment Services Limited are distributors.

UBS's Equity Risk Management Products team was placed first in all 9 equity categories in Asiamoney's inaugural structured products poll published this year. UBS was also voted Overall Best Provider in the Equity category.

Hong Kong, 11 October 2004
UBS

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