Item 2

Appropriation of Results

A. Motion
The Board of Directors proposes the following appropriation:

CHF million

Loss for the financial year 2007 as per the Parent Bank's Income Statement

CHF (4,251)

Appropriation to other reserves

CHF (4,251)

B. Explanations
The loss of the current year will be set-off against the other reserves. While the Board of Directors proposes no cash dividend for the financial year 2007, the Extraordinary General Meeting of 27 February 2008 authorized the Board of Directors to issue up to 103,7 million new shares to replace the cash dividend for the financial year 2007 with a stock dividend. The final exchange ratio for the entitlement to the stock dividend will be announced no later than at the Annual General Meeting.

Revised version of 1 April 2008