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UBS Global Asset Management creates additional business structures to enhance client focus and build for the future.

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UBS Global Asset Management, a business group of UBS AG, today announced that it will create two additional business structures - one for alternative and quantitative investments, the other for global real estate. This will enhance investment and client focus while providing a solid foundation for growth and future expansion.

Alternative and quantitative investments will now be combined into a separate platform alongside hedge fund specialist, O'Connor. Additionally, the strong real estate businesses - principally located in the US, Switzerland and the UK - will be combined into a separate and global real estate capability.

Commenting on this announcement, John Fraser, Chairman and Chief Executive Officer of UBS Global Asset Management, stated: Building on the very strong performance in our core investment management business over the past three years or more, this is a further step in defining and positioning our broad array of capabilities. Our ability to deliver leading investment capabilities in a focused way across all asset classes will bring very real benefits to our institutional and wholesale clients alike."

Mr Fraser added: We also believe that this will facilitate innovative product development and expansion of our capabilities on a global basis to the benefit of our clients. These moves are also in line with the repositioning of GAM within UBS announced separately.

The expanded alternative and quantitative investments platform, with assets in the order of CHF 15 billion, will be led by Joe Scoby in addition to his continuing role as Chief Executive Officer of O'Connor. Danny Schweizer, formerly Chief Executive Officer, UBS Warburg Switzerland, has transferred to Chicago, as Deputy Chief Executive Officer of O'Connor. Joe Scoby's role will be to lead the broad range of existing alternative and quantitative offerings and also to develop new capabilities. These businesses currently include not only O'Connor but also AIS, (the Hong Kong-based fund of hedge funds business), DSI (the New York-based enhanced global equity index manager) and the Alternative Investment Group based in Zurich.

Mr Scoby said: By consolidating our alternative and quantitative capabilities into one platform, we will be better able to pool resources and share knowledge. Our goal is to develop a logistics platform that attracts the best investment and advisory talent. These teams can excel under multiple brands and a variety of areas and specialisations. As part of a large and successful organisation, we are well positioned for the institutionalisation of the alternatives business and are very excited about our growth prospects. UBS's commitment to this business is clear."

UBS Global Asset Management is already one of the largest providers of global real estate investment capabilities. The regional real estate businesses, which have largely operated as separate units within core investment management, have more than CHF 20 billion in commercial and multifamily real estate assets under management including timber assets located in six countries, and agricultural assets in the US. All the real estate businesses will now be organised into an integrated global real estate team to enhance the global focus and delivery of real estate products to both proprietary and third party clients in key target markets.

Jim O'Keefe, who will become the CEO of the global real estate capability, said: In our business model, we view real estate as a separate asset class and not an alternative investment. Positioning us as a global and separate capability will allow us to grow the real estate business on a worldwide basis and permit us to better share our expertise. The global real estate capability will, in time, be augmented with an expansion of our capabilities in Europe. This global platform is not about consolidation - it is about growth and I am personally delighted to be part of this exciting development."

Contacts:

Mark Arena, UBS Group Media Relations, London

Tel. +44-20-7568 2439

Monika Dunant, UBS Group Media Relations, Switzerland

Tel. +41-1-234 84 06

Christine Walton, UBS Group Media Relations, US

Tel. +1-212-713 2138

Notes to editors:

UBS Global Asset Management offers a wide range of investment capabilities for institutional investors, wholesale intermediaries and individual investors, and aims to deliver superior investment performance to clients through the management and allocation of investments across and within all major asset classes. Assets under management, as at 31st December 2002: CHF 557 billion (USD 403 billion, GBP 250 billion, EUR 384 billion).

O'Connor, with offices in Chicago, New York, Stamford, London and Tokyo, provides hedge fund investment opportunities to clients including central banks, insurance companies, pension plans, endowments and high net worth individuals. AIS (Alternative Investment Strategies) is based in Hong Kong and is solely involved in the management of fund of hedge funds where portfolios have been managed by the same core team since inception seven years ago. AIS client base is sourced mainly through UBS. DSI, founded in 1970, is based in New York and provides enhanced global index management. DSI has outperformed the S&P 500 Index for 24 out of 27 quarters, from March 1996 to September 2002.

UBS Global Asset Management is Europe's 2nd largest alternative investments manager. (Source: Institutional Investor, November 2002, ranked on assets at 31 December 2001)

UBS Global Asset Management manages Swiss real estate funds and ranks as one of the largest wholesale real estate managers in Switzerland. UBS Realty Investors in the US has a focus on commercial and multifamily real estate. The UK real estate business manages the UBS Triton Property Fund (Triton). For the last three years, Triton has won the Estates Gazette award for the top performing portfolio in its category. Two years ago, Mitsubishi Corp. - UBS Realty, a Japanese real estate business, was established. This joint venture with Mitsubishi Corp. was responsible for listing the third REIT in Japan and the first specialising in the retail sector.

UBS announced on 18 February 2003 that it will create a new holding company to incorporate its five independent private banks as well as GAM, a specialist asset management firm. GAM was previously a separate business within UBS Global Asset Management.

UBS Global Asset Management is one of four business groups of UBS AG along with UBS Warburg, UBS Wealth Management & Business Banking and UBS PaineWebber. UBS AG is a leading global financial services firm with over 70,000 employees worldwide. Headquartered in Switzerland, UBS has significant operations in all of the world's major financial centres.

London, 18 February 2003
UBS AG