New Issue: UBS prices $10.36 million autocallable optimization securities tied to Weatherford

By Angela McDaniels

Tacoma, Wash., Dec. 17 - UBS AG, London Branch priced $10.36 million of 0% autocallable optimization securities with contingent protection due Dec. 22, 2011 linked to the common stock of Weatherford International Ltd., according to a 424B2 filing with the Securities and Exchange Commission.

If Weatherford stock closes at or above its initial share price on any of 12 monthly observation dates, the notes will be called automatically and investors will receive par of $10 plus an annualized call premium of 21%.

The payout at maturity will be par if the stock finishes at or above 70% 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:	Weatherford International Ltd. (NYSE: WFT)
Amount:	$10,363,490
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; otherwise, par plus stock return
Call:	At par plus annualized call premium of 21% if Weatherford stock closes at or above initial share price on any of 12 monthly observation dates
Initial share price:	$20.55
Trigger price:	$14.39, 70% of initial share price
Pricing date:	Dec. 15
Settlement date:	Dec. 21
Underwriters:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	1.25%
Cusip:	90267F386

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