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Tuesday 15 May, 2001


1st Quarter Results

15 May 2001

UBS reports results for first quarter 2001: 
Net profit after tax CHF 1,579 million

UBS reports a net profit after tax of CHF 1,579 million for the first quarter
2001, down 29% compared to the first quarter 2000, or 19% excluding the goodwill
impact of the PaineWebber merger. Business units performed well, despite less
favourable economic and market conditions. Clients invested more than CHF 21
billion in net new money.

Zurich/Basel, 15 May 2001 - In the first quarter 2001, UBS achieved a net profit
after tax of CHF 1,579 million. This represents a decline of 29% over the
buoyant first quarter 2000, or 19% excluding the goodwill impact of the
PaineWebber acquisition, and a decrease of 3% on the preceding quarter, once
adjusted for significant financial events'.

'Our businesses performed encouragingly this quarter, with resilient income and
well-controlled costs, despite the weakening equity markets and the
industry-wide slow down in investment banking,' commented Luqman Arnold,
President of the Group Executive Board.

With strong trading performance, and fees and commissions accounting for more
than half the Group's revenue, operating income was resilient, up 8% from first
quarter 2000.

Tight cost control had a significant influence on the results. Costs in both the
Private and Corporate Clients and Private Banking units were lower than for any
quarter last year. In UBS Warburg's Corporate and Institutional Clients business
unit both the compensation/income ratio and the cost/income ratio were at the
same level as the first quarter last year. For the whole Group, non-personnel
expenses fell quarter-on-quarter, despite a full quarter's costs from UBS

Net new money in the private client units (Private Banking and Private Clients)
was CHF 11 billion in the quarter, up from CHF 5 billion in fourth quarter 2000.
Net new money for the Group was more than CHF 21 billion, the best quarterly
result reported since the UBS/SBC merger. All business units posted healthy
inflows despite declining markets and weakening investor confidence in the US,
Total invested assets decreased by less than 1% during the quarter to CHF 2,438

In the private equity portfolio, deteriorating asset quality led to write-downs
of investments, which combined with poor conditions for divestments to produce a
loss of CHF 282 million in UBS Capital. UBS Capital expects to show a profit
over the remainder of the year.

1 Significant Financial Events:

There were no significant financial events in first quarter 2001 or first
quarter 2000.
Fourth quarter 2000 saw two significant financial events:

-       UBS's previously established liability for the US Global Settlement
        regarding World War II related claims was offset by
        CHF 50 million pre-tax, as a result of contributions from Swiss
        industrial companies.

-       UBS recorded a CHF 290 million pre-tax restructuring charge relating
        to the integration of PaineWebber into UBS

       Performance against Group Financial Targets:

       Pre-goodwill and adjusted for significant financial events:

*      Annualized return on equity was 17.6%, below the exceptional level of
       the first quarter of 2000 but within the target range of 15 - 20%.
*      Basic earnings per share decreased 26% to CHF 4.49 from CHF 6.04.

*      The cost/income ratio rose to 73.9% from 66.5% in first quarter 2000,
       and 73.0% in fourth quarter 2000, reflecting the influence of the
       relatively high cost/income ratio typical of UBS PaineWebber's

       Strategic Initiatives

       Private Banking
       Implementation of the new European wealth management strategy is well
       underway. Integrated management structures are in place for each region,
       the buildup of client advisor numbers is on track, and the projects to
       upgrade products, training, marketing and technology for the new
       businesses are on target, bringing together the expertise of UBS
       PaineWebber and Private Banking,

       UBS PaineWebber
       The early introduction of the UBS PaineWebber brand was made possible by
       the extremely positive reception for the merger from PaineWebber staff
       and the smooth progress of integration, The decision to implement the new
       brand was supported by requests from UBS PaineWebber financial advisors, 
       who wanted to emphasize to their clients the advantages in scope, scale  
       and access to global resources brought by UBS PaineWebber's new place in 
       the UBS Group.

       Investment banking

       UBS Warburg has enhanced both its capabilities and performance in
       corporate finance, with involvement in four out of the seven largest
       global mergers and acquisitions deals announced in the first quarter.
       The integration of PaineWebber has delivered an outstanding hiring
       platform in the US, allowing the bank to take selective advantage of
       hiring opportunities.


       Prospects for global economies are uncertain, although conditions in
       Switzerland continue to be healthy. At Group level, UBS does not see the
       potential for 2001 to outperform 2000. Nevertheless, the resilience of
       core businesses so far this year has been encouraging.

       'Our businesses are showing themselves to be more and more competitive
       and are well positioned to respond positively to improving market
       conditions,' commented Luqman Arnold.

       UBS Group Financial Highlights

                                           Quarter ended        % change from

CHF million, except where indicated   31.3.01  31.12.00  31.3.00  4Q00  1QOO

Income statement key figures
Operating income                      10,067    9,300     9,357     8     8
Operating expenses                     7,872    7,364     6,449     7    22
Operating profit before tax            2,195    1,936     2,908    13   (25)
Net profit                             1,579    1,449     2,216     9   (29)
Cost/income ratio(%)1                   77.2     78.4      68.0
Cost/income ratio before
goodwill (%) 1.2                        73.9     75.6      66.5

Per share data (CHF)
Basic earnings per share                3.72      3.39      5.66   10   (34)
Basic earnings per share 
before goodwill 2                       4.49      4.02      6.04   12   (26)
Diluted earnings per share              3.31      3.34      5.61   (1)  (41)
Diluted earnings per share
before goodwill 2                       4.06      3.95      5.98    3   (32)

For the period                          3M01     12M00      3M00

Return on shareholders' equity (%)
Return on shareholders, equity 2       14.5      21.5       31.1
Return on shareholders, equity 
before goodwill 2.3                    17.6      23.4       33.2

CHF million except where indicated                              % change from

As of                                 31.3.01  31.12,00   31.3.00  4Q00  1QOO

Balance sheet key figures
Total assets                        1,216,952 1,087,552  980,916    12    24
Shareholders' equity                   43,380    44,833   29,322    (3)   48
Market capitalization                 106,078   112,666   92,316    (6)   15

BIS capital ratios

Tier 1(%)                                10.2      11.7     11.0    (13)  (7)
Total BIS (%)                            14.0      15.7     14.5    (11)  (3)
Risk-weighted assets                  286,885   273,290  277,841      5    3

Invested assets (CHF billion)           2,438     2,452    1,766     (1)  38

Headcount (full time equivalents) 4    71,080    71,076   48,157      0   48

Long-term ratings
Fitch, London                             AAA       AAA      AAA
Moody's, New York                         Aal       Aal      Aal
Standard & Poor's, New York               AA+       AA+      AA+

Earnings Adjusted for Significant Financial Events 5
                                         Quarter ended          % change from

CHF million except where indicated    31.3.01   31.12.00  31.3.00  4Q00  1 QOO

Operating income                       10,067     9,300     9,357     8      8
Operating expenses                      7,872     7,124     6,449    10     22
Operating profit before tax             2,195     2,176     2,908     1    (25)
Net profit                              1,579     1,634     2,216    (3)   (29)

Cost/income ratio
before goodwil1(%) 1.2                   73.9       73.0     66.5
Basic earnings per share 
before goodwill (CHF) 2                   4.49      4.45      6.04    1    (26)
Diluted earnings per share
before goodwill (CHF) 2                   4.06      4.38      5.98   (7)   (32)

                                          3M01      12M00     3M00

Return on shareholders' equity
before goodwill(%)2.3                     17.6       24.3      33.2

1 Operating expenses/operating income before credit loss expense  2 The
amortization of goodwill and other intangible assets is excluded from the
calculation  3 Annualized Net profit/average shareholders' equity       
excluding dividends. 4 The Group headcount does not include the Klinik
Hirslanden AG headcount of 2,062, 1,839 and 1.853 for 31 March 2001,            
31 December 2000 and 31 March 2000, respectively. 5 Details of significant
financial events can be found in the Group Review.

Fourth quarter 2000 figures include the impact of the acquisition of
PaineWebber, which occurred on 3 November. 31 March 2000 figures do not
include Paine Webber.

Results of the business group

UBS Switzerland 
Private and Corporate Clients recorded its best ever quarter with net profit
before tax of CHF 540 million, up 6% from fourth quarter 2000. Revenues were
down slightly from fourth quarter, but costs were lower than in any quarter last
year, reflecting the continued impact of efficiency projects and the benefits of
the UBS/SBC merger. Net new money inflows of CHF 3.2 billion were recorded
during the quarter.

Private Banking's profits remain healthy, up 14% compared to fourth quarter 2000
at CHF 780 million, with income dropping only marginally and costs at a
twelve-month low. Net new money strengthened to CHF 3.9 billion, from CHF 0.2
billion in fourth quarter.

UBS Asset Management
UBS Asset Management's pre-tax profit recovered to CHF 52 million, from
CHF 36 million in fourth quarter 2000. Thanks to its successful relative
investment performance, the business group attracted net new money of CHF
7.4 billion, the first overall net inflow since 1998.

Institutional new money outflows continued to moderate this quarter,
totaling CHF 3.3 billion compared to CHF 6.9 billion last quarter. UBS
Asset Management recorded net new money inflows in its US institutional
business. Phillips and Drew's flagship fund was the only one in its peer
group to record a positive return over the last 12 months.

Invested assets in mutual funds increased from CHF 319 billion at 31
December 2000 to CHF 332 billion at 31 March 2001. Net new money inflows
of CHF 10.7 billion during the first quarter reflected US investors'
increased appetite for money market investments provided by Brinson
Advisors, and strong net new money growth in European-registered equity

UBS Warburg

UBS Warburg's Corporate and Institutional Clients business unit reported very
strong results with a pre-tax profit of CHF 1,325 million, down only 8% from the
record results achieved in the exceptional markets of first quarter last year,
while increasing 40% from fourth quarter 2000. Market volatility led to strong
trading performance, with particularly good returns in fixed income.

UBS Warburg's Private Clients business unit, based on the UBS PaineWebber
franchise, was relatively unaffected by the continued downturn in US
equity markets, with profits and revenues running ahead of the fourth
quarter.  Pre-tax profit totaled CHF 123 million. Net new money for first
quarter 2001 was CHF 6.8 billion, compared to CHF 4.9 billion in fourth
quarter 2000.

Media release available as a pdf-download at 
Further information on UBS's quarterly results is available at 
- 1 Q2001 Report (pdf and interactive version) 
- 1 Q2001 Results slide presentation

Webcast: The results presentation by Luqman Arnold, President, UBS AG, will be
webcast live via at the following time on Tuesday, 15 May: 
- 0900 CET 
- 0800 BST 
- 0300 EDT 
- Webcast playback will be available from 1400 CET on
Tuesday, 15 May, with a bookmarked version available the following day.

Cautionary statement regarding forward-looking statements

This communication   contains  statements  that  constitute   'forward-looking
statements',   including,  without  limitation,  statements  relating   to   the
implementation of strategic initiatives, including the implementation of the new
European  wealth management strategy and the implementation of  a  new  business
model  for  UBS  Capital, and other statements relating to our  future  business
development and economic performance.

While  these  forward-looking  statements represent  our  judgments  and  future
expectations  concerning the development of our business,  a  number  of  risks,
uncertainties  and other important factors could cause actual  developments  and
results to differ materially from our expectations.

These   factors   include,  but  are  not  limited  to,  (1)   general   market,
macro-economic, governmental and regulatory trends, (2) movements in  local  and
international  securities markets, currency exchange rates and  interest  rates,
(3)  competitive pressures, (4) technological developments, (5) changes  in  the
financial   position  or  credit-worthiness  of  our  customers,  obligors   and
counterparties, (6) legislative developments and (7) other key factors  that  we
have  indicated  could  adversely affect our business and financial  performance
which  are contained in our past and future filings and reports, including those
with the SEC.

More  detailed  information  about  those factors  is  set  forth  in  documents
furnished  by  UBS and filings made by UBS with the SEC, inducing  UBS's  Annual
Report  on  Form 20-F for the year ended 31 December 2000 UBS is not  under  any
obligation to (and expressly disclaims any such obligations to) update or  alter
its  forward-looking  statements whether as result of  new  information,  future
events, or otherwise.
       Results from the business group

       Reporting by Business Group1

                                            UBS Asset
CHF million             UBS Switzerland     Management       UBS Warburg
For the 3-month      31.3.01     31.3.00  31.3.01  31.3.00  31.3.00 
 period ended 

Income                3,494        3,793       519     482   6,038       5,224
Credit loss expense2   (185)        (232)        0       0     (39)        (75)

Total operating
 income               3,309        3,561       519     482   5,999       5,149

Personal expenses     1,221        1,347       252     202   3,721       2,839
General and
 expenses               625          602       139      96   1,092         680
Depreciation            133          134        11      10     170         131
Amortization of
 goodwill and
other intangible
 assets                  10           36        65      65     248          35

Total operating
 expenses             1,989        2,119       467     373   5,231       3,685

Business unit
performance before
 tax                  1,320        1,442        52     109     768       1,464
Significant financial
Tax expense

Net profit before
minority interests
Minority interests

Net profit

CHF million             Corporate Centre       UBS Group
For the 3-month      31.3.01     31.3.00  31.3.01  31.3.00   
 period ended 

Income                  152          (17)  10,203    9,482
Credit loss expense2     88          182     (136)    (125)  

Total operating
 income                 240          165   10,067    9,357

Personal expenses        79          134    5,273    4,522
General and
 expenses                21           53    1,877    1,431 
Depreciation             80           73      394      348
Amortization of
 goodwill and
other intangible
 assets                   5           12      328      148

Total operating
 expenses               185          272    7,872    6,449 

Business unit
performance before
 tax                     55         (107)   2,195    2,908
Significant financial
 events                                         0        0
Tax expense                                   548      666  

Net profit before
minority interests                          1,647    2,242
Minority interests                            (68)     (26)

Net profit                                  1,579    2,216


1 All periods have been restated to reflect the current business
structure of the Group  2In management accounts, statistically derived
adjusted expected credit loss rather than the IAS actual net credit loss
expense is reported for each Business Group. The breakdown by Business
Group of the net credit loss expense for financial reporting purposes of
CHF 136 million for the three-month period ended 31 March 2001 (CHF 125
million for the three-month period ended 31 March 2000) is as follows: UBS
Switzerland CHF 14 million (CHF 16 million), UBS Warburg CHF 122
million (CHF 109 million).

Invested Assets
                                                        Net new 
                                                         money 1

CHF billion                  31.3.01      31.12.00      % Change       1Q01
UBS Group                      2,438         2,452           (1)
UBS Swiltzerland
Private and Corporate 
  Clients                        337           345           (2)          3
Private Banking                  690           691            0           4
UBS Asset Management
Institutional funds              305           323           (6)         (3)
Mutual funds                     332           319            4          11
UBS Warburg
Private Clients                  773           773            0           7
UBS Capital                        1             1            0

1 Excludes interest and dividend income.

See page 11 of First Quarter 2001 Report for detail of the new definition for
invested assets

Results from the Group financial accounts

UBS Group Income Statement

                                          Quarter ended          % change from
CHF million, except per share data  31.3.01  31.12.00   31.3.00  4Q00      1QOO

Operating income
Interest income                     14,565   15,186     11,397     (4)       28
Interest expense                   (12,607) (13,213)    (9,308)    (5)       35
Net interest income                  1,958    1,973      2,089     (1)       (6)
Credit loss expense                   (136)     (95)      (125)    43         9
Net interest income after
credit loss expense                  1,822    1,878      1,964     (3)       (7)
Net fee and commission income        5,089    5,003      4,079      2        25
Net trading income                   3,060    1,916      2,978     60         3
other income                            96      503        336    (81)      (71)

Total operating income              10,067    9,300      9,357      8         8

Operating expenses
Personnel                            5,273    4,424      4,522     19        17
General and administrative           1,877    2,088      1,431    (10)       31
Depreciation and amortization          722      852        496    (15)       46

Total operating expenses             7,872    7,364      6,449      7        22

Operating profit before tax and
minority interests                   2,195    1,936      2,908     13       (25)
Tax expense                            548      442        666     24       (18)
Net profit before minority
interests                            1,647    1,494      2,242     10       (27)
Minority interests                     (68)     (45)       (26)    51       162
Net profit                           1,579    1,449      2,216      9       (29)

Indicative USD conversions - Adjusted results

Key results 1

1st Quarter 2001                 1Q01                         4Q00
                         CHF          Approx. USD      CHF         Approx. USD

Net profit            1.579 bn           0.940 bn 2   1.634 bn      0.967 bn 4
Total operating
income               10.067 bn           5.992 bn 2   9.300 bn      5.503 bn 4
Basic EPS before
goodwill                  4.49               2.67 2       4.45          2.63 4
Diluted EPS before
goodwill                  4.06               2.42 2       4.38          2.59 4

                               31 Mar 01                    31 Dec 00

Total assets          1,217 bn             703 bn 3   1,087 bn        663 bn 5
Shareholders' equity   43.4 bn              25.1 bn 3  44.8 bn       27.3 bn 5
Invested Assets       2,438 bn             1,409 bn 3 2,452 bn      1,495 bn 5

NOTES:                                                  CHF/USD
1  All figures adjusted for significant financial
2  Based on average rate for first quarter 2001          1.68
3  Based on spot rate at 31 Mar 01                       1.73
4  Based on 12 month average USD rate as at 31.12.00     1.69
5  Based on spot rate at 31 Dec 00                       1.64


a d v e r t i s e m e n t