UBS will make available 2.3% of the corresponding total payroll for individual, function- and market-related salary increases on the Swiss market for employees and middle management staff. As in previous years, the adjustments come into effect on 1 March.

All UBS employees and middle management staff employed under the terms of the Agreement on Conditions of Employment for Bank Staff (VAB) are in addition eligible for inclusion in the performance and results-related bonus process.

Discussions between UBS and its employee representation committee (ERC) ended by mutual agreement after two rounds of intensive negotiations. No agreement could be reached on the salary increase distribution model proposed by the ERC, which was not in accord with the firm's market- and performance-driven remuneration policy. The amount of individual salary increases has therefore been set by UBS, not by negotiation. The ERC focused exclusively on the distribution issue.

Zurich/ Basel, 1 November 2004
UBS