New Issue: UBS prices $705,000 14.75% reverse convertibles linked to First Solar

By E. Janene Geiss

Philadelphia, Sept. 28 - UBS AG priced $705,000 of reverse convertible notes due Dec. 30, 2009 linked to the common stock of First Solar, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes will pay 3.6875% for an annualized coupon of 14.75%. Interest is payable monthly.

The payout at maturity will be par unless First Solar stock falls below the trigger price - 70% 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 Citigroup shares equal to $1,000 divided by the initial price.

UBS Securities LLC is the underwriter.

Issuer:	UBS AG
Issue:	Reverse convertible notes
Underlying stock:	First Solar, Inc. (Nasdaq: FSLR)
Amount:	$705,000
Maturity:	Dec. 30, 2009
Coupon:	14.75%, payable monthly
Price:	Par
Payout at maturity:	If First Solar stock falls below trigger price during life of notes and finishes below initial price, 6.5415 First Solar shares; otherwise, par
Initial share price:	$152.87
Trigger price:	$107.00, 70% of initial share price
Pricing date:	Sept. 25
Settlement date:	Sept. 30
Underwriter:	UBS Securities LLC
Fees:	2%

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