Annual General Meeting 2006


Item 2: Appropriation of retained earnings / Dividend for financial year 2005

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

Profit for the financial year 2005 as per the income statement

CHF 13,497 million

Appropriation to general statutory reserves

CHF 334 million

Proposed dividends

CHF 3,375 million

Appropriation to other reserves

CHF 9,788 million

Total appropriation

CHF 13,497 million

The Board of Directors proposes distribution of a gross dividend of CHF 3.20 per share. Treasury shares held by UBS AG on the record date are not entitled to dividends.

B. Explanations
The proposal of the Board of Directors to distribute a gross dividend of CHF 3.20 per share, an increase of 7% from the previous year, reflects the excellent financial results achieved in 2005 and the firm's policy of returning excess capital to its shareholders. The proposal is also an indication of the Board of Directors' and the Group Executive Board's confidence in the future of UBS. In addition to the proposed dividend under Agenda Item 5.3, the Board of Directors proposes a par value repayment in the amount of CHF 0.60.

Provided that the proposal of the Board of Directors is approved, on 24 April 2006 a distribution of CHF 2.08 per share (after deduction of 35% Swiss withholding tax) will be made to all shareholders on record as of 19 April 2006. The shares will be traded ex dividend on 20 April 2006.