Annual General Meeting 2007

Items

Item 2: Appropriation of Retained Earnings
Dividend for Financial Year 2006

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

Profit for the financial year 2006 as per the income statement

CHF 6,558 million

Appropriation to general statutory reserves

CHF 457 million

Proposed dividends

CHF 4,582 million

Appropriation to other reserves

CHF 1,519 million

Total appropriation

CHF 6,558 million

The Board of Directors proposes distribution of a gross dividend of CHF 2.20 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 2.20 per share, an increase of 38% from the previous year, reflects the excellent financial results achieved in 2006 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.

Provided that the proposal of the Board of Directors is approved, on 23 April 2007 a distribution of CHF 1.43 per share (after deduction of 35% Swiss withholding tax) will be made to all shareholders on record as of 18 April 2007. The shares will be traded ex dividend on 19 April 2007.