UBS UBS Group AG

UBS today has issued a notice of redemption to the holders of 6.243% Noncumulative Trust Preferred Securities (the “Securities”) of UBS Preferred Funding Trust V (the “Trust”), representing a corresponding amount of 6.243% Noncumulative Company Preferred Securities (the “Preferred Securities”) of UBS Preferred Funding Company LLC V (the “Company”).

Pursuant to the provisions of Section 5.02 of the Amended and Restated Trust Agreement of the UBS Preferred Funding Trust V, dated as of May 12, 2006 (the “Trust Agreement”), Wilmington Trust Company will redeem from the holders all outstanding Securities, representing $1,000,000,000 aggregate liquidation preference, on May 15, 2016 (the “Redemption Date), in accordance with the Company's Amended and Restated Limited Liability Company Agreement (the “LLC Agreement”).

The Securities will be redeemed for the same amount in cash as the redemption price of the Preferred Securities, which will equal to the sum of:

(i)   100% of the liquidation preference of the Preferred Securities being redeemed; (ii) an amount equal to unpaid dividends, if any, on the Preferred Securities with respect to the current Dividend Period (whether or not declared) accrued on a daily basis to the Redemption Date; and (iii) an amount equal to unpaid Definitive Dividends on the Preferred Securities for any prior Dividend Period, without interest and without accumulation of unpaid Non-definitive Dividends on the Preferred Securities for any prior Dividend Period (in each case as defined in and calculated in accordance with the LLC Agreement) (the “Redemption Price”). The Company shall pay the Redemption Price received upon redemption of the Preferred Securities to the Paying Agent for distribution to the holders of the Securities in accordance with the terms of the Trust Agreement.

Payment on the Securities will be made upon surrender of the Securities to the Paying Agent, Michael H. Wass at Wilmington Trust Company. The Securities called for redemption must be surrendered to the Paying Agent to collect the Redemption Price.

Upon redemption, the Securities will be canceled and interest on the Securities will cease to accrue on and after the Redemption Date. Capitalized terms used herein but not otherwise defined herein shall have the meanings assigned thereto in the Trust Agreement or the LLC Agreement, as applicable.

Amounts may be deducted and withheld from the Redemption Price as required by U.S. federal tax law. When presenting Securities, investors must provide the applicable withholding agent with a properly completed and executed IRS Form W-9 or applicable IRS Forms W-8, as the case may be.

About UBS

UBS is committed to providing wealthy, institutional and corporate clients worldwide, as well as private clients in Switzerland, with superior financial advice and solutions while generating attractive and sustainable returns for shareholders. Its strategy centers on its Wealth Management and Wealth Management Americas businesses and its leading universal bank in Switzerland, complemented by its Asset Management business and its Investment Bank. These businesses share three key characteristics: they benefit from a strong competitive position in their targeted markets, are capital-efficient, and offer a superior structural growth and profitability outlook. UBS's strategy builds on the strengths of all of its businesses and focuses its efforts on areas in which it excels, while seeking to capitalize on the compelling growth prospects in the businesses and regions in which it operates. Capital strength is the foundation of its success.

UBS is present in all major financial centers worldwide. It has offices in more than 50 countries, with about 35% of its employees working in the Americas, 36% in Switzerland, 17% in the rest of Europe, the Middle East and Africa and 12% in Asia Pacific. UBS Group AG employs about 60,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).

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UBSGregg Rosenberg, +1-212-713 8842Gregg.rosenberg@ubs.com