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