New Issue: UBS prices $718,300 call warrants linked to stock basket

By Laura Lutz

Des Moines, June 28 - UBS AG priced a $718,300 offering of call warrants linked to a basket of 15 stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the common stock of AMB Property Corp., Expeditors International of Washington Inc., FedEx Corp., United Technologies Corp., The Goldman Sachs Group Inc., Goodrich Corp., Nike Inc., Procter & Gamble Co., Starbucks Corp. and Aflac Inc. It also includes American Depositary Shares representing the stock of Infosys Technologies Ltd., Rio Tinto plc, Nokia Corp., China Mobile Ltd. and Melco PBL Entertainment Macau Ltd.

The warrants expire on June 23, 2009.

The warrants will be automatically exercised on the expiration date if the final basket level is greater than the initial basket level. Investors will receive the notional amount of $59.56 per warrant multiplied by the return on the basket.

The notional amount is equal to the issue price of $10.00 per warrant divided by the warrant premium, which is 16.79%. Therefore, investors will lose part of their investment in the warrants if the basket return is positive but less than the warrant premium.

If the final basket level is less than or equal to the initial basket level, the warrants will expire worthless and investors will lose their entire investments. Investors may not exercise their warrants prior to the expiration date.

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

Issuer:	UBS AG
Issue:	Call warrants
Underlying stocks:	AMB Property Corp., Expeditors International of Washington Inc., FedEx Corp., United Technologies Corp., The Goldman Sachs Group, Goodrich Corp., Nike Inc., Procter & Gamble Co., Starbucks Corp., Aflac Inc., Infosys Technologies Ltd., Rio Tinto plc, Nokia Corp., China Mobile Ltd., Melco PBL Entertainment Macau Ltd.
Amount:	$718,300
Warrant expiration:	June 23, 2009
Price:	Par of $10.00
Warrant exercise:	If final basket level is greater than the initial basket level, warrants will be automatically exercised and investors will receive the notional amount of $59.56 per warrant multiplied by the return on the basket; if final level is less than or equal to initial level, warrants will expire worthless
Warrant premium:	16.79%
Pricing date:	June 25
Underwriters:	UBS Investment Bank and UBS Financial Services Inc.
Underwriting discount:	4.76%

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