New Issue: UBS prices $14 million 0% partial principal-protected notes linked to six indexes

By Jennifer Chiou

New York, Sept. 26 - UBS AG priced a $14 million issue of 0% partial principal-protected notes due Sept. 28, 2011 linked to a basket of six indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying indexes include the Dow Jones Euro Stoxx 50 with a 40% weight, Nikkei 225 with a 20% weight and the FTSE/Xinhua China 25, Swiss Market, Korea Kospi 200 and MSCI Emerging Markets, all with a 10% weight.

At maturity, if the return on the indexes is positive, investors will share in a participation rate of 125% of the basket return. If the basket return is between negative 20% and 0%, investors will receive par.

If the basket loss is greater than 20%, investors will lose 1% for each percentage point the loss is beyond 20%.

Issuer:	UBS AG
Issue:	Principal-protected notes
Underlying indexes:	Dow Jones Euro Stoxx 50 (40% weight), Nikkei 225 (20% weight), FTSE/Xinhua China 25 (10% weight), Swiss Market (10% weight), Korea Kospi (10% weight), MSCI Emerging Markets (10% weight)
Amount:	$14 million
Maturity:	Sept. 28, 2011
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	Par plus 125% of any positive return on the basket; par if the basket return declines up to 20%; if the basket loss is greater than 20%, investors will lose 1% for each percentage point the loss is beyond 20%
Pricing date:	Sept. 22
Underwriters:	UBS Investment Bank, UBS Financial Services Inc.

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