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The strength of UBS

UBS is one of the world’s leading wealth managers. For more than 140 years—in major financial centers around the world—UBS has been managing wealth for private clients and demonstrating strength through ever-changing economic climates. Today, few firms rival our distinctive combination of wealth and asset management and investment banking, or our global footprint and infrastructure.

Positioned for growth2009 was a year of transformation, during which Wealth Management Americas (WMA) laid the foundation for sustained profitability.

Under the leadership of CEO Robert McCann and a senior management team of highly regarded industry veterans, we are streamlining our operations to become a more nimble organization, one that responds quickly to clients and market opportunities. “We are committed to being strong, smart and fast,” in the words of Mr. McCann.

In the fourth quarter, WMA returned to profitability, recording a 62% increase in pretax profit that totaled $171 million on operating income of $1,340 million. These results reflect a nonrecurring interest income credit, increased fee income and lower personnel expenses.

Wealth Management Americas Steadily improving profitability(USD millions)

All 4Q09 figures have been converted from CHF to USD using the spot currency exchange rate of CHF/USD of 1.04.

Enhanced global performanceImproved results in the Americas division were consistent with those of the global firm: All UBS AG operating divisions returned to profitability in the fourth quarter of 2009. “We are delivering on our plan for a new UBS,” noted Oswald Grübel, CEO, UBS AG. “We are optimistic that the effects of the progress made in improving efficiency, reducing risk, and rebuilding and refocusing businesses will be felt in the coming quarters.” The quarter clearly showed the firm’s renewed financial strength, greater efficiency and enhanced cost control. Most notably, UBS AG reported substantial reductions in both its risk exposure and its balance sheet:

Raised capital ratio

Lowered risk exposure

Reduced fixed costs

BIS Tier 1 capital ratio climbed to 15.4%, from 11.0% on 12/31/08.

FINMA leverage ratio rose to 3.93% from 2.45% a year ago.

Assets1 were down 21% year on year to $884 billion.

Total risk weighted assets were reduced by 32% year on year, to $199 billion.

Cost and head count reductions set for year-end 2010 were largely achieved in 2009.

Fixed costs were reduced by more than $3 billion.

1 Total assets excluding positive replacement values of $406 billion and $821 billion on 12/31/09 and 12/31/08, respectively.

Restored profitability in every division

In 4Q09, UBS AG reported net profits of $1,159 million, with all divisions achieving positive results:

• Wealth Management & Swiss Bank profits rose 40% to $1,066 million, mainly due to lower personnel expenses and other cost reduction measures.

• Global Asset Management’s pretax profits

increased to $273 million from $125 million in the third quarter, with lower personnel expenses more than offsetting lower revenues during the period.

$-250

$0

$250

$500

$750

$1,000

$1,250

$1,500

1Q09 3Q09 4Q092Q09

$1,354 $1,315 $1,324 $1,340

$171$106

($34) ($213)

Pretax results Operating income

• Investment Bank quarterly pretax profit totaled $285 million, compared with a pretax loss of $1,317 million in the third quarter, which ended September 30.

One of the world’s strongest and best-capitalized banksAs a result of the continued reduction of risk-weighted assets, our BIS Tier 1 capital ratio totaled 15.4% at the end of 2009, up from 11% a year earlier.

Tier 1 capital ratio, 4Q 2009

Our current long-term credit ratings are among the highest in the industry:

Credit ratings (as of February 9, 2010)

Moody’s long-term rating/outlook

S&P long-term rating/outlook

UBS Aa3 A+/S

Credit Suisse Aa2/N A/S

JPMorgan Aa1 AA-

Wells Fargo A1/S AA-/N

Goldman Sachs A1/N A/N

Bank of America A2/N A/N

Morgan Stanley A2/N A/N

UBS Financial Services Inc.www.ubs.com/financialservicesinc

UBS Financial Services Inc. and UBS International Inc. are subsidiaries of UBS AG. ©2010 UBS Financial Services Inc. All rights reserved. Member SIPC. As of February 9, 2010

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5

10

15

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16.3%15.4%

12.6%

UBSU.S. firms

DBCS MS/SB GS Citi JPM BoA/MLEuropean firms

15.4% 15.0%

11.7% 11.1% 10.4%