Ersel and UBS, joint venture partners in Giubergia UBS SIM, a member of the Milan Stock Exchange, announced today that they have agreed that UBS will buy, subject to regulatory approval, the whole of Ersel's stake under the terms of a formula set out in the agreement governing the conduct of the joint venture business, thus reaching 100% of the ordinary capital.

Ersel has decided to concentrate on its core businesses of Private Banking and Asset Management. The business relationship between Ersel and UBS will continue in all businesses to the benefit of both parties.

The joint venture between Ersel and UBS has been very successful since its formation in 1991 through S. G. Warburg and has developed into the leading Italian international Equity broker.

The move confirms the strategic commitment of UBS to the Equities business in Italy where it has a leading market position together with a leading position in Europe overall.

London, 9 July 2004
UBS