New Issue: UBS prices $8.03 million autocallable optimization securities on Ford

By Marisa Wong

Madison, Wis., Dec. 17 - UBS AG, London Branch priced $8.03 million of 0% autocallable optimization securities with contingent protection due Dec. 22, 2011 linked to the common stock of Ford Motor Co., according to a 424B2 filing with the Securities and Exchange Commission.

If Ford stock closes at or above its initial share price on any of four quarterly observation dates, the notes will be automatically called and investors will receive par of $10 plus an annualized call premium of 14.3%.

The payout at maturity will be par plus a contingent coupon of 14.3% if the stock finishes at or above 75% of its initial price. Otherwise, investors will be fully exposed to the share price decline.

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

Issuer:	UBS AG, London Branch
Issue:	Autocallable optimization securities with contingent protection
Underlying stock:	Ford Motor Co. (NYSE: F)
Amount:	$8,030,740
Maturity:	Dec. 22, 2011
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	If final share price is greater than or equal to trigger price, par plus 14.3%; otherwise, par plus stock return
Call:	At par plus annualized call premium of 14.3% if Ford stock closes at or above initial share price on any of four quarterly observation dates
Initial share price:	$16.55
Trigger price:	$12.41, 75% of initial share price
Pricing date:	Dec. 15
Settlement date:	Dec. 21
Underwriters:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	1.5%
Cusip:	90267F352

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