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UBS launches SUPER Notes IX linked to leading Hong Kong blue chip stocks

| Media Releases APAC

UBS today launched SUPER Notes IX (Series no. 9a - HKD and Series no. 9b- USD) linked to a basket of three blue chip stocks listed in Hong Kong. The Notes have a fixed coupon of 10% for the first nine months and target a coupon of 11.5% over their maximum lifetime of 2.75 years.

Depending on the performance of the least worst performing stock on each quarterly coupon calculation date, investors in SUPER Note IX have the potential to receive a quarterly coupon after the first nine months. The Notes will be mandatorily early redeemed once the aggregate coupon paid out after the first nine months reaches 1.5%.

After the first nine months, the potential coupon payable is the lower of (a) the return achieved by the worst performing stock at the relevant coupon calculation date and (b) the target redemption coupon of 11.5% less the sum of the coupon/s for each coupon payment date prior to the relevant coupon payment date (including the first fixed coupon of 10%). The return of each stock on the relevant coupon calculation date is calculated by comparing the closing price of such stock on such coupon calculation date and the trade date.

If the Notes are mandatorily early redeemed, investors will receive 100% of the principal and the relevant coupon. The investment period will thus be shortened and the returns enhanced.

The Notes will be redeemed in cash at 100% of the principal amount if the total coupon paid during the life of the Notes reach 11.5% or the closing price of the worst performing stock on the final coupon calculation date is at or above its conversion price. If either of the above conditions is not fulfilled, the Notes will be redeemed by physical delivery of such worst performing stock that may be worth substantially less than the principal amount of the Notes.

"The instruments offer good return potential and may be mandatorily early redeemed as early as three months after the first fixed coupon has been paid," said Min PARK, Head of Equity Risk Management at UBS, Asia.

"The three stocks in the basket - Cheung Kong (Holdings) Limited, HSBC Holdings plc and Sun Hung Kai Properties Limited - are blue chip names in Hong Kong. Each stock had at least a 78%'buy' or 'hold' recommendation as displayed on Bloomberg as of 16th March 2005," 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 22nd March until 15th April.

ABN AMRO Bank N.V. Hong Kong; Bank of China (Hong Kong); Chiyu Banking Corporation; Hang Seng Bank; Nanyang Commercial Bank; Shanghai Commercial Bank; Sun Hung Kai Investment Services; Wing Hang Bank; and Wing Lung Bank are distributors.

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

Enquiries

Mark Panday

(T) +852 2971 8221

(M) +852 9747 1990

Matthew McGrath

(T) +852 2971 8200

(M) +852 9325 0166

Donna Chan

(T) +852 2971 8792

(M) +852 9312 1311


22 March 2005, Hong Kong
UBS