Communiqués de presse


UBS finalizes equity funding for PaineWebber merger.

| Media Releases Switzerland

UBS has completed the equity funding for its USD 11.8 billion (CHF 20.8 billion) merger with PaineWebber, with no further requirement to issue shares. The integration of PaineWebber has proceeded very smoothly and is now essentially complete: the final IT and operational changes will be implemented in early February.

As announced at the completion of the merger, UBS chose to make an initial issuance of 12 million new ordinary shares, and to re-issue 7 million shares held in Treasury. The remaining 21.6 million ordinary shares needed for the merger were borrowed in the market.

Through its Treasury share buy-back program, which started on 6 November 2000, UBS has now repaid all the borrowed shares. No further new shares will be issued in connection with the PaineWebber merger. UBS has met its commitment to minimize the dilution of earnings and voting power, by keeping the final number of new UBS shares issued as small as possible.

As at 24 January 2001, UBS had purchased 22.1 million shares through the buy-back program, at an average price of CHF 262. The program will continue for the time being. Any further shares repurchased under the program will not be cancelled, but will be used for Treasury management purposes, principally to fund the Group's various employee share ownership plans. In order to ensure maximum transparency and clarity for investors, UBS will continue to publish the amount of Treasury shares repurchased every ten business days. Details can be found on the Investor Relations website at www.ubs.com/investor-relations.

UBS is and intends to remain one of the best-capitalized financial institutions in the world. UBS will, however, continue to avoid the build-up of excess capital, through selectively investing in its own shares. Any shares bought for capital reduction purposes would be repurchased under a separately announced, "second-line" buy-back program aimed at institutional investors, allowing tax efficient cancellation of the shares.


Zurich / Basel, 26 January 2001
UBS AG

Cautionary statement regarding forward-looking statements
This communication contains statements that constitute "forward-looking statements", including, without limitation, statements relating to the implementation of strategic initiatives and other statements relating to our future business development and economic performance.

While these forward-looking statements represent our judgements and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, (1) general market, macro-economic, governmental and regulatory trends, (2) movements in local and international securities markets, currency exchange rates and interest rates, (3) competitive pressures, (4) technological developments, (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties, (6) our ability to achieve the anticipated benefits of the merger with PaineWebber, and (7) other key factors that we have indicated could adversely affect our business and financial performance which are contained in our past and future filings and reports, including those with the SEC.
More detailed information about those factors is set forth in documents furnished by UBS and filings made by UBS or PaineWebber with the SEC. UBS is not under any obligation to (and expressly disclaims any such obligations to) update or alter its forward-looking statements whether as a result of new information, future events, or otherwise.