New Issue: UBS prices $154,960 12.76% trigger yield optimization notes linked to Gerdau

By Angela McDaniels

Tacoma, Wash., Sept. 6 - UBS AG, London Branch priced $154,960 of 12.76% annualized trigger yield optimization notes due Dec. 14, 2011 linked to the American Depositary Shares of Gerdau SA, according to a 424B2 filing with the Securities and Exchange Commission.

The face amount of each note is equal to the initial price of Gerdau ADSs.

Interest is payable monthly.

The payout at maturity will be par in cash unless the final price of Gerdau ADSs is less than 70% of the initial ADS price, in which case investors will receive one Gerdau ADS per note.

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

Issuer:	UBS AG, London Branch
Issue:	Trigger yield optimization notes
Underlying ADSs:	Gerdau SA (NYSE: GGB)
Amount:	$154,960.39
Maturity:	Dec. 14, 2011
Coupon:	12.76%, payable monthly
Price:	Par of $8.17
Payout at maturity:	If final share price is less than trigger price, one Gerdau ADS; otherwise, par
Initial ADS price:	$8.17
Trigger price:	$5.72, 70% of initial price
Pricing date:	Sept. 6
Settlement date:	Sept. 9
Agents:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	0.7%
Cusip:	90267H390

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