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UBS leverages returns on Swiss equities

| Media Releases Switzerland

... and launches UBS (CH) Equity Fund - UBS 100 advanced

UBS is launching the new UBS (CH) Equity Fund - UBS 100 advanced on the market. This investment fund aims to enhance returns within a predefined price appreciation range by using an active derivatives strategy. Starting 17 November, all UBS clients will be able to partake in this innovative investment strategy in the shape of UBS (CH) Equity Fund - UBS 100 advanced. The new fund is the latest addition to UBS's advanced" product family, which was successfully launched in March 2002 with UBS (Lux) Equity Fund - EURO STOXX 50 advanced B for European blue-chips.

This new, actively managed fund was developed on the assumption that we are unlikely to see a repeat of the stock price gains of the late 1990s in the foreseeable future. The consensus view is that the Swiss equity market has now returned to its long-term trend line with annual return expectations in the upper single-digit percentage range.

UBS (CH) Equity Fund - UBS 100 advanced has been designed in response to these revised market expectations. Its investment concept is based on a diversified equity portfolio, in which individual stocks are overlaid with targeted options strategies. These create a leverage effect within a price appreciation range which is limited on the upside - the so-called leverage zone. The value of the fund grows faster in this range than its benchmark, the UBS 100 Index. The option maturities are selected to be as short as possible (max. 3 months) so that the derivative overlay is continuously renewed. In this way, excess returns are regularly locked in and new upward potential constantly created. The fund is thus able to participate in steadily rising stock prices. If share markets rise more than average, however, the fund's additional upward potential is reduced compared to the underlying index.

In falling markets, the options strategy does not lead to greater price losses relative to the index - so the investor is not exposed to any additional risk. Based on the outlined scenarios, this market innovation has the potential to generate above-average returns in average markets.

You will find more information on UBS Funds at: www.ubs.com/funds

Zurich/Basel, 13 November 2003
UBS

The most important information on the fund in summary:

Fund name

UBS (CH) Equity Fund - UBS 100 advanced

Securities number

1 704 395

Fund launch

17-28 November 2003

Domicile

Switzerland

Fund management company

UBS Fund Management (Switzerland) AG

Issue price

CHF 10 (or at the respective NAV from 1 December 2003)

Redemption commission

None

Taxes

withholding tax/tax at source

Currency of account

CHF

Value date

3 bank business days

Commissions/charges valid in Switzerland

2% issuing commission

Financial year ends

31 October

Income distribution

January

All-in fee

1.5% p.a.

Investment fund account

This fund can also be acquired via the UBS Investment Fund Account.


Representative in Switzerland for UBS Investment Funds established under foreign law: UBS Fund Management (Switzerland) AG, PO Box, CH-4002 Basel. Prospectuses as well as annual and semi-annual reports of UBS Investment Funds are available free of charge at UBS AG, PO Box, CH-4002 Basel or UBS Fund Management (Switzerland) AG, PO Box, CH-4002 Basel. Units of investment funds mentioned in this publication may not be offered, sold or delivered in the USA. The information about funds provided on this page does not constitute an offer. It is for informational purposes only. Past performance is no guarantee for future trends.

EURO STOXX 50 is a mark of STOXX LIMITED and has been licensed for certain purposes by UBS Equity Fund Management Company S.A.