New Issue: UBS prices $1.53 million of 23.25% reverse convertibles linked to Citigroup

By E. Janene Geiss

Philadelphia, Sept. 14 - UBS AG priced $1.53 million of 23.25% annualized reverse convertible notes due Dec. 16, 2009 linked to Citigroup Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par in cash unless the stock falls below the trigger price - 65% of the initial price - during the life of the notes and finishes below the initial price, in which case investors will receive a number of Citigroup shares equal to $1,000 divided by the initial price.

UBS Securities LLC and UBS Investment Bank are the underwriters.

Issuer:	UBS AG
Issue:	Reverse convertible notes
Underlying stock:	Citigroup Inc. (NYSE: C)
Amount:	$1,532,000
Maturity:	Dec. 16, 2009
Coupon:	23.25%, payable monthly
Price:	Par
Payout at maturity:	Par in cash unless Citigroup shares fall below the trigger price during the life of the notes and finish below the initial price, in which case 216.9197 Citigroup shares
Initial price:	$4.61
Trigger price:	$3.00, or 65% of initial price
Pricing date:	Sept. 11
Settlement date:	Sept. 16
Underwriters:	UBS Securities LLC and UBS Investment Bank
Fees:	2%

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