UBS news

UBS reaches settlement with regulators on trading activity

New York / Basel / Zurich Price Sensitive Information

UBS AG announced today that UBS Financial Services Inc. has reached a settlement agreement with the New York Stock Exchange, the State of New Jersey and the State of Connecticut with respect to certain short-term trading activity between 2000 and 2002 by clients of several UBS Financial Advisors. As part of the settlement agreement, UBS has agreed to pay $54 million, of which $18 million will be set aside for potentially affected investors and $16 million for investor education and securities-enforcement initiatives.

The costs of the settlement will be largely reflected as provisions in the firm's fourth-quarter results.

UBS neither admits nor denies any of the allegations made against the firm.

New York, 12 January 2006