Annual General Meeting 2005


Item 2: Appropriation of retained earnings / Dividend for financial year 2004

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

Profit for the financial year 2004 as per the income statement CHF

5,946 million

Allocation to General statutory reserves

CHF 322 million

Proposed dividend

CHF 3,261 million

Allocation to Other reserves

CHF 2,363 million

Total allocated

CHF 5,946 million

The Board of Directors proposes to distribute a dividend of CHF 3.00 per share. Treasury shares held by UBS AG on the record date are not ranking for dividend.

B. Explanations
The proposal of the Board of Directors to distribute a dividend of CHF 3.00 per share, 15% more than a year earlier, reflects the excellent financial results achieved in 2004 and the firm's policy to return excess capital to shareholders - in the form of dividends or by buying shares back for cancellation. It is also proof of the Board of Directors' and the Group Executive Board's confidence in UBS's future.

Upon approval of the proposal by the AGM, the distribution of CHF 1.95 per share (after deduction of 35% Swiss withholding tax) will be made on 26 April 2005 to shareholders on record as at 21 April 2005. The shares will be traded ex dividend on 22 April.