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UBS launches SUPER Notes XI linked to leading Hong Kong property stocks

| Media Releases APAC

UBS today launched SUPER Notes XI (Series no. 11a - HKD and Series no. 11b- USD). The Notes are linked to a basket of six Hong Kong listed property companies and have a fixed coupon of 9.5% for the first year, with subsequent potential variable coupons linked to the average performance of the shares in the basket, as well as potential bonus coupon as high as 9% over their maximum lifetime of 2.5 years.

The basket comprises: Cheung Kong (Holdings) Limited, Hang Lung Properties Limited, Henderson Land Development Co. Limited, Sun Hung Kai Properties Limited, Swire Pacific Limited - A shares and the Wharf (Holdings) Ltd.

"The stocks in the basket are renowned names in Hong Kong's property sector. This latest in the series has the potential to generate strong returns for investors by capturing the rising momentum of the Hong Kong property market," added Christopher F LEE, head of UBS's Equity Risk Management Intermediary desk.

After the first year, the variable coupon payable at each six-month period equals to the lower of (a) average return achieved by the equity-linked companies as at the relevant coupon calculation date compared to the trade date, subject to a minimum of 0%; 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 fixed coupon for year one). The Notes can be redeemed early in cash at 100% of the principal amount when the total coupon paid on the Notes reaches 11.5%, together with the variable coupon for that coupon payment date and a bonus coupon of (a) 1% if such early redemption occurs on the second coupon payment date or (b) 5% if such early redemption occurs on the third coupon payment date. A bonus coupon of 9% may also be payable upon redemption at maturity. If the Notes are redeemed early, investors will receive 100% of the principal and the relevant coupon. The investment period will thus be shortened and the returns enhanced.

The Notes are available for subscription by retail investors in Hong Kong from 18th July 2005 until 5th August. Bank of China (Hong Kong); Bank of Communications; 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. In addition, UBS was awarded the Equity Derivatives House of the Year 2004 by Asia Risk and The Asset.

Enquiries

Matthew McGrath

(T) +852 2971 8200

(M) +852 9325 0166


Hong Kong, 18 July 2005
UBS