New Issue: UBS prices $48 mln 12.5% GOALS linked to AOL Time Warner

New York, Oct. 30 - UBS AG Monday sold $48 million of 12.5% one-year GOALS equity-linked notes based on AOL Time Warner Inc. stock. Buyers of the notes receive a high coupon in exchange for participating in any downside in AOL.

At maturity, holders will receive either their principal back in cash or AOL shares, if the stock has fallen below certain levels. If paid in stock, holders will fully participate in the loss in value of AOL stock.

The securities were sold via underwriters UBS Warburg and UBS PaineWebber Inc.

Issuer: UBS AG

Amount: $48 million

Maturity: Nov. 1, 2002

Coupon: 12.5%, payable semi-annually

Price: Par ($1,000)

Initial price: $33.50 - corresponds to closing price of AOL shares

on trade date

Protection price: $23.45 (30% below initial price)

Payment at maturity: If AOL shares never close below protection price on two consecutive NYSE

trading days before final valuation date (three business days before maturity):

--100% of principal in cash

If AOL shares close below protection price on two consecutive NYSE trading

days before final valuation date but close on final valuation date at or

above initial price:

--100% of principal in cash

Otherwise:

--AOL shares. Number is $1,000 divided by initial price.

Listing: American Stock Exchange under symbol GPL.A

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