New Issue: UBS sells $2.45 million autocallable optimization notes tied to Amazon

By Susanna Moon

Chicago, Dec. 8 - UBS AG, London Branch priced $2.45 million of 0% autocallable optimization securities with contingent protection due Dec. 13, 2011 based on the performance of Amazon.com, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

If Amazon's shares close at or above the initial share price of any of 12 monthly observation dates, the notes will be automatically called and investors will receive par of $10 plus an annualized call premium of 15.4%.

If the notes are not called and the stock finishes at or above 75% of the initial price, the payout at maturity will be par. Otherwise, the payout will be par plus the stock return.

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

Issuer:	UBS AG, London Branch
Issue:	Autocallable optimization securities with contingent protection
Underlying stock:	Amazon.com, Inc. (Nasdaq: AMZN)
Amount:	$2,453,510
Maturity:	Dec. 13, 2011
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par if final share price is greater than or equal to trigger price; otherwise, par plus share price return
Call:	At par plus annualized call premium of 15.4% if Amazon's shares close at or above the initial price on any of 12 monthly observation dates
Initial share price:	$178.05
Trigger price:	$133.54, or 75% of initial price
Pricing date:	Dec. 6
Settlement date:	Dec. 9
Agents:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	1.5%
Cusip:	90267F287

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