Following this year's frank and intensive wage negotiations that presented challenges for both sides, the UBS employer representatives and the Employee Representation Committee have reached the following agreement:

As of 1 March 2002, UBS will make available 1.4% of the corresponding total payroll for individual, performance and function-related salary increases on the Swiss market for employees and middle management staff.

All UBS employees and middle management staff whose performance has fully met the set objectives are in addition eligible for inclusion in the performance and results-related bonus process.

Zurich / Basel, 26 October 2001
UBS AG