Full-year 2006
- Net profit attributable to UBS shareholders of CHF 12,257 million, with CHF 11,491 million from continuing operations and CHF 766 million from discontinued operations
- Financial businesses' attributable profit from continuing operations at a record CHF 11,249 million, up 19% from 2005
- Total UBS net new money at a record CHF 151.7 billion, with CHF 113.3 billion from wealth management businesses worldwide

Fourth quarter 2006
- Fourth quarter attributable profit from continuing operations of CHF 3,145 million, up 19% from the same period a year earlier, with financial businesses contributing CHF 3,055 million, up 18% year-on-year
- Total UBS net new money a strong CHF 25.5 billion, with CHF 21.7 billion inflow from wealth management businesses worldwide
- Fourth quarter diluted EPS from continuing operations of CHF 1.54, up 20% from a year earlier. Cost/income ratio of 70.6%, down 0.3% from fourth quarter 2005

Dividend, share buyback
- Proposed dividend payout of CHF 2.20 a share, up from CHF 1.60 a year earlier (adjusted for last year's 2-for-1 split and excluding the one-time par value repayment for the sale of Private Banks & GAM)
- New three-year second line repurchase program with a maximum limit of 10% of shares issued, representing approximately CHF 16 billion at current share price level

Zurich/Basel, 13 February 2007 – UBS reports net profit attributable to shareholders of CHF 12,257 million in 2006. Continuing operations contributed CHF 11,491 million and discontinued operations CHF 766 million.

Financial businesses' attributable profit from continuing operations was a record CHF 11,249 million in 2006, up 19% from the same period a year earlier.

"We are pleased to report that 2006 was another record year for UBS. The performance of our financial businesses improved for the fourth consecutive year. Even more importantly, we took a number of strategic steps to expand and develop our business in line with our growth ambitions," said Peter Wuffli, Chief Executive Officer.

UBS realized four significant acquisitions in 2006, three of which have already been completed. They will close important competitive gaps and help accelerate growth, particularly with regard to Banco Pactual in Latin America. The results of all businesses improved notably in 2006 from a year earlier. Net new money from clients totaled CHF 151.7 billion, with CHF 113.3 billion contributed by the wealth management businesses, which experienced strong client flows all around the world, and particularly in Asia and Europe. As a result of the strong inflows and rising markets, invested assets nearly reached the CHF 3 trillion mark. Recurring fees, including asset-based revenues and income from private client lending businesses, were up significantly compared with 2005. Brokerage fees rose as well, reflecting the vigorous levels of financial market trading activity from institutional and private clients.

UBS's Investment Bank further expanded its share of M&A and equity capital markets, with particular success in large cap deals, emerging markets and technology. As a result, corporate finance and underwriting fees rose 25%. The strategic expansion of UBS's business, both by acquisition and through organic development, requires more people, infrastructure and investment, and although income rose 19%, costs were up 18%.

"We are acutely aware of the importance of concentrating extra resources in areas that generate or support increased revenues, and making sure that we do not allow any part of our business to develop inefficient habits," said Clive Standish, Chief Financial Officer.

Some of the increase in expenses came from two previously announced provisions; the settlement agreement with Sumitomo Corporation and the sublease of unused office space in New Jersey. Higher personnel costs, however, were the major contributor to increased expenses as, at the end of 2006, UBS employed 78,140 people, 8,571 more than a year earlier. Over 2,000 of the increase was from acquisitions completed during the year. UBS continued to hire client-facing personnel and functional specialists for its businesses all around the world. As a consequence, occupancy costs rose. Expenses for IT outsourcing, telecommunication and travel were up in conjunction with higher activity levels, business volume and revenue. Professional fees rose for strategic initiatives.

Fourth quarter results
In fourth quarter 2006, net profit attributable to UBS shareholders from continuing operations in the financial businesses was CHF 3,055 million, an 18% rise from the same period a year earlier.

As in the first two quarters of 2006, profits from continuing operations in the financial businesses exceeded CHF 3 billion.

In the quarter, income again expanded on the continued strong levels of asset-based revenues in the wealth and asset management businesses, reflecting sustained inflows of assets from clients and strengthening financial markets. Bond and equity underwriting fees grew. Trading revenues rose compared with both fourth quarter 2005 and third quarter 2006. The equities business benefited from increased commissions in the cash business, particularly in emerging markets, and overall revenues in fixed income, rates and currencies grew 11% compared with fourth quarter 2005.

The fourth quarter included one month of revenues from Pactual in Brazil. Its operations are being integrated into each of the business groups following the closing of the acquisition on 1 December. The business has been renamed UBS Pactual, and it is now the cornerstone of UBS's expanding Latin American presence. The acquisition of ABN AMRO's global futures and options business closed on 30 September. With its integration, fee revenues from exchange traded derivatives in fourth quarter 2006 have already doubled from a year earlier. Also in fourth quarter, UBS's new alternative investment management business, Dillon Read Capital Management (DRCM), launched its first outside investor fund, and began to contribute to the asset management business' revenues.

Dividend and new three year share buyback program
The dividend proposal for 2006 is an expression of the confidence UBS has in its future performance. The Board of Directors will propose that it raise the payout to CHF 2.20 a share in order to match the strong 2006 result. Subject to shareholder approval, this is a 16% increase from the total payout last year, which included a par value repayment of CHF 0.30 a share. It is also 38% higher than last year's regular dividend of CHF 1.60 a share.

In March 2007, UBS's seventh consecutive annual share buyback program will end. This will be succeeded by a new three-year second-line repurchase program with a maximum limit of 10% of shares issued. At the current share price, this would represent a maximum total of approximately CHF 16 billion. As in all past programs, the shares bought in this program will be canceled as and when approved by the Annual General Meeting (AGM). This underlines UBS's long-term approach to managing capital. The three-year period is an extended commitment showing its continued disciplined approach to shareholder returns. It also gives it the flexibility to deploy capital for its first priority – the growth of its business. UBS will both make further add-on acquisitions if appropriate opportunities arise and keep investing in the organic growth of its business.

Outlook
UBS combines global scale and focus on growth in a unique way. Its businesses occupy strong market positions in those segments of the financial industry that are expected to grow significantly faster than the economy as a whole over the long term. In the short term, as the economic cycle matures, investors might become more sensitive to any disappointing political or economic developments, so UBS's top-class risk control remains paramount. However, for UBS, 2007 has started on a positive note, with a strong deal pipeline and continued investor confidence and activity. With a global presence that is balanced across the Americas, Europe and Asia Pacific, the building blocks of its growth strategy are firmly in place.

"Last year we made a highly concentrated number of acquisitions while investing heavily in organic growth. In 2007, our focus will be on integrating our new areas of activity and we expect to start seeing the benefits from them materializing for our clients and shareholders," said Peter Wuffli.