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UBS launches principal-protected SUPER Notes linked to Asian blue-chip stocks

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UBS today announced the launch of Hong Kong's first publicly-registered principal-protected notes with returns linked to a basket of blue chip Asian stocks.

The SUPER Notes will be offered to retail investors in Hong Kong via a syndicate of retail banks acting as distributors using a programme prospectus and an issue prospectus registered for such purpose. Linked to a customised basket of 20 Asian blue-chip stocks, the structured equity-linked notes are principal protected.

. The product is the first of its type and includes the unique feature of a guaranteed coupon payment of 4.5% in the first year and variable coupons in subsequent years linked to the equity returns calculated from the customised basket, with a mechanism to ensure that the coupon in years three to five are no less than the previous year's coupon. Stocks comprising the basket include: HSBC Holdings, DBS Group Holdings, Samsung Electronics and Taiwan Semiconductor Manufacturing Company.

"Intermediary financial institutions are an important client segment for UBS's equity derivatives business. The SUPER Notes structure is the first of its kind available to retail investors in Hong Kong and the notes are the latest in a series of innovative investment products we plan to provide to Hong Kong's retail banking sector," said Chi-Won YOON, Head of Equity Risk Management at UBS, Asia.

"The SUPER Note product provides investors with principal protection, a fixed coupon of 4.5% in the first year and a coupon with a feature ensuring that the coupon in years three to five will equal or better the previous year's," explained Min PARK, Head of Structuring in UBS's equity risk management team.

"With this new equity-structure product, UBS further consolidates its status in Asia as the bank for banks in the region," added Christopher F LEE, head of UBS's equity risk management intermediary desk.

The SUPER Notes are available between 4th August and 15th August from: Bank of China (Hong Kong), Nanyang Commercial Bank, Chiyu Bank, Wing Lung Bank, Wing Hang Bank, Dah Sing Bank, Mevas Bank, Shanghai Commercial Bank & Sun Hung Kai Investment Services, Ltd.

Hong Kong, 4 August 2003