Annual General Meeting 2000

Items

Item 2: Appropriation of retained earnings

A. Resolution
The Board of Directors proposes that the Parent Company profit be appropriated as follows:

Profit for the financial year 1999
Retained earnings from prior year

CHF 6,788 million
CHF 3 million

Available for appropriation

CHF 6,791 million

Appropriation to general statutory reserve
Appropriation to other reserves
Proposed dividends

CHF 215 million
CHF 4,200 million
CHF 2,364 million

Retained earnings carried forward

CHF 12 million

B. Explanations
The Board of Directors proposes that the General Meeting of Shareholders approve an increase in the dividend from CHF 10 to CHF 11 per share.

If the General Meeting approves the proposal, the dividend will be paid to shareholders or their depository banks on 26 April 2000 after deduction of 35% Swiss withholding tax.