New Issue: UBS prices $341,000 13.5% reverse convertibles linked to General Electric

By E. Janene Geiss

Philadelphia, Sept. 15 - UBS AG priced $341,000 of reverse convertible notes due March 16, 2010 linked to the common stock of General Electric Co., according to a 424B2 filing with the Securities and Exchange Commission.

The six-month notes will pay 6.75% for an annualized coupon of 13.5%. Interest is payable monthly.

The payout at maturity will be par unless General Electric stock falls below the trigger price - 75% of the initial share price - during the life of the notes and finishes below the initial price, in which case investors will receive a number of General Electric shares equal to $1,000 divided by the initial price.

UBS Investment Bank is the underwriter.

Issuer:	UBS AG
Issue:	Reverse convertible notes
Underlying stock:	General Electric Co. (NYSE: GE)
Amount:	$341,000
Maturity:	March 16, 2010
Coupon:	13.5%, payable monthly
Price:	Par
Payout at maturity:	If General Electric stock falls below trigger price during life of notes and finishes below initial price, 68.1663 General Electric shares; otherwise, par
Initial share price:	$14.67
Trigger price:	$11.00, 75% of initial share price
Pricing date:	Sept. 11
Settlement date:	Sept. 16
Underwriter:	UBS Investment Bank
Fees:	2.25%

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