New Issue: UBS prices $1.6095 million yield optimization notes linked to silver

By Angela McDaniels

Seattle, April 26 - UBS AG priced a $1.6095 million issue of yield optimization notes with contingent protection due Oct. 31, 2007 linked to the price of silver, according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 5% at maturity for an annualized coupon of 10%.

The payout at maturity, in addition to the coupon, will be par unless the price of one troy ounce of silver falls by more than 20% during the life of the notes and finishes below its initial price, in which case investors will be fully exposed to the decline in the price of silver.

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

Issuer:	UBS AG
Issue:	Yield optimization notes with contingent protection
Underlying asset:	Silver
Amount:	$1.6095 million
Maturity:	Oct. 31, 2007
Coupon:	10%, payable at maturity
Price:	Par of $10
Payout at maturity:	If the price of silver falls below the trigger price during the life of the notes and finishes below the initial price, investors will share fully in the decline; otherwise, par
Initial silver price:	$13.8214 per troy ounce
Trigger price:	$11.0571 per troy ounce, 80% of initial price
Pricing date:	April 24
Settlement date:	April 30
Underwriter:	UBS Financial Services Inc., UBS Investment Bank
Underwriting discount:	1%

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