New Issue: UBS prices $10 million protected absolute return barrier notes linked to S&P 500

By Susanna Moon

Chicago, Oct. 21 - UBS AG priced $10 million of zero-coupon 100% principal protection absolute return barrier notes due April 20, 2009 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index never closes above its upper barrier or below the lower barrier during the life of the notes, the payout at maturity will be par of $10 plus the absolute value of the index return. Investors will receive at least par.

The upper barrier is 117.35% of the initial index level, and the lower barrier is 82.65% of the initial level.

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

Issuer:	UBS AG
Issue:	100% principal protection absolute return barrier notes
Underlying index:	S&P 500
Amount:	$10 million
Maturity:	April 20, 2009
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If index stays within barriers, par plus absolute value of index return; floor of par
Initial index level:	975.75
Lower index barrier:	806.46, or 82.65% of initial index level
Upper index barrier:	1,145.04, or 117.35% of initial index level
Pricing date:	Oct. 17
Settlement date:	Oct. 22
Underwriters:	UBS Financial Services Inc., UBS Investment Bank
Fees:	0.6%

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