New Issue: UBS prices $3.71 million trigger autocallable optimization notes linked to iShares Russell 2000

By Angela McDaniels

Tacoma, Wash., Aug. 9 - UBS AG, London Branch priced $3.71 million of 0% trigger autocallable optimization securities due Aug. 11, 2014 linked to the iShares Russell 2000 index fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call return of 13.9% if the ETF's shares close at or above the initial share price on Feb. 6, 2012, Aug. 9, 2012, Feb. 5, 2013, Aug. 5, 2013, Feb. 5, 2014 or Aug. 5, 2014.

The payout at maturity will be par if the ETF's final share price is at least 70% of the initial share price. Otherwise, investors will be exposed to the decline from the initial share price to the final share price.

UBS Financial Services Inc. and UBS Investment Bank are the underwriters.

Issuer:	UBS AG, London Branch
Issue:	Trigger autocallable optimization securities
Underlying ETF:	iShares Russell 2000 index fund
Amount:	$3,714,800
Maturity:	Aug. 11, 2014
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	If ETF's shares finish at or above trigger price, par; otherwise, par plus ETF return
Call:	At par plus premium of 13.9% per year if ETF's shares close at or above initial share price on Feb. 6, 2012, Aug. 9, 2012, Feb. 5, 2013, Aug. 5, 2013, Feb. 5, 2014 or Aug. 5, 2014
Initial share price:	$71.30
Trigger price:	$49.91, 70% of initial price
Pricing date:	Aug. 5
Settlement date:	Aug. 10
Underwriters:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	2.25%
Cusip:	90268B335

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