Ars Settlement Agreement

Previously, on August 8, 2008, UBS announced the terms of the comparison with NASAA, the Securities Exchange Commission (SEC) and the states of New York and Massachusetts. As part of the August 2008 comparison, UBS agreed to purchase ARS from “eligible customers” pursuant to an October 7, 2008 ARS Rights Offer prospectus. All customers eligible for the ARS rights offer received notification letters in October 2008. ARS Rights Offering required UBS to acquire $8.3 billion from private clients as of October 30, 2008 and to acquire ARS$10.3 billion from legitimate institutional clients as of June 30, 2010. UBS was the first major company to announce a final timetable for institutional clients. UBS ARS`s rights offer covered ARS owners who were UBS customers at the time of the market failure, regardless of where those LRAs were purchased. It also concerned clients who acquired ARS from UBS between October 1, 2007 and February 13, 2008, but who had sold it to UBS prior to February 13, 2008. Detailed information on the management of the company with the SEC can be found in Ubs`s August 8, 2008 press release. UBS has also created a tool for LRA-eligible investors to determine current interest rates and/or dividends on their specific LRA stocks; Security identifiers (known as CUSIPs) were included in letters sent to current and former eligible customers.

For more information, investors can also contact the Commission`s Office of Investor Training and Interest Representation for requests for comparisons at (202) 551-6551 or oiea@sec.gov. Investors and members of the public can also verify that www.sec.gov/investor/ars.htm more information about LRAs. In summary, the 9th Arrondissement found that the facilitation provided for in the transaction was “worthless” to the class, as it would only benefit consumers contacted by ARS in the future, not class members who had been called in the past. The court also found that the agreement had a “leakage” clause that allowed ARS to terminate the injunction in the event of a change in the law and to effectively “delegate” the so-called discharge.