Investor releases

UBS releases regrouped figures reflecting the transfer of the municipal finance business from the Wealth Management USA unit to the Investment Bank

Zurich Investor Releases

UBS is today releasing regrouped figures in order to align comparative prior periods for the transfer of the municipal finance business from Wealth Management USA to the Investment Bank. This shift became effective on 1 July 2005. In addition, we have changed the treatment of Wealth Management USA's corporate cash management business, excluding its assets from the invested asset measure, as a detailed business review revealed that these assets only involve a minimal advisory role for UBS. Please note that all the numbers contained in this restatement release are unaudited.

Change in reporting structure

Following the recently announced integration of our two wealth management units, our reporting structure will change as of third quarter 2005. While not separately disclosed as a Business Group, full transparency on Wealth Management USA will be maintained by reporting it as a Business Unit under the newly formed Business Group Global Wealth Management & Business Banking.

Transfer of the municipal finance business

Through this business shift, CHF 43 million and CHF 78 million of pre-tax profit was transferred from Wealth Management USA into the Investment Bank for first half 2005 and full year 2004, respectively. While operating income of CHF 172 million and CHF 357 million was shifted, the business transfer also involved an operating expense shift in the amount of CHF 129 million and CHF 279 million for first half 2005 and full year 2004. This business transfer also impacted most of the key performance indicators (KPIs) of the affected Business Groups/Business Units and their VaR utilization.

Please find following the P&L impacts for the Wealth Management USA unit and the Investment Bank on a line by line basis:

Changes 1H05

Changes 2004

(CHF million)

WM USA

IB

WM USA

IB

Fixed income, rates and currencies

172

357

Municipal finance revenues

-180

-372

Net goodwill funding

8

15

Income

-172

172

-357

357

Total operating income

-172

172

-357

357

Cash components

-89

89

-166

166

Share-based components

-14

14

-23

23

Total personnel expenses

-103

103

-189

189

General and administrative expenses

-11

11

-33

33

Services to / from other business units

-13

13

-27

27

Depreciation of property and equipment

-2

2

-4

4

Amortization of goodwill

0

0

-26

26

Total operating expenses

-129

129

-279

279

Performance before tax

-43

43

-78

78

Change in treatment of WM USA's corporate cash management business

Following a detailed comparison of all Wealth Management business lines in connection with the integration, we came to the conclusion that the corporate cash management business of the Wealth Management USA unit involves only a minimal advisory role for UBS. We have therefore re-classified these assets in Wealth Management USA to exclude them from invested assets. This change has reduced invested assets for Wealth Management USA as well as for UBS by CHF 32 billion and CHF 33 billion as at 30 June 2005 and 31 December 2004, and increased net new money by CHF 3.9 billion and CHF 1.0 billion for first half of 2005 and full year 2004.

Appendix

Enclosed with this release are the revised "timeseries" for the Global Wealth Management & Business Banking and Investment Bank Business Groups as well as for the Business Unit Wealth Management USA. A full set of our revised timeseries can be found on our analysts & investors web page (www.ubs.com/investors).


Zurich, 4 October 2005
UBS