UBS Announces Reverse Split of UBS Next Generation Internet Index Exchange Traded Note: EIPL

New York - 29 August 2012

UBS AG announced that it will implement a 1-for-4 reverse split of its ETRACS Monthly 2xLeveraged Next Generation Internet ETN due July 19, 2041 (the “Note”) effective September 12, 2012. The Note trades on the NYSE Arca under the ticker symbol “EIPL”. Pursuant to the terms of the Note and as described in the prospectus supplement relating to the Note, UBS AG has the right (but not the obligation) to initiate such a reverse split if the Current Principal Amount of the Note falls below $10.00 on any Trading Day. As of August 27, 2012 the Current Principal Amount of the Note was $5.9583.

The record date for the reverse split will be 5:00 P.M., New York time, on September 11, 2012. The Current Principal Amount of the Note on the record date will be multiplied by four to reflect the 1-for-4 reverse split of the Note. The reverse split will be effective at the open of trading on September 12, 2012, and the Note will begin trading on the NYSE Arca on a reverse-split adjusted basis on such date. The reverse-split adjusted Notes will have a new CUSIP, but will retain the same ticker symbol.

Investors who, as of the record date, hold a number of Notes that is not divisible by four will receive one reverse-split adjusted Note for every four Notes held on the record date and a cash payment for any odd number of Notes remaining (the “partials”). The cash amount due on any partials will be determined on September 18, 2012, based on the closing indicative value of the reverse-split adjusted Notes on such date and will be paid by UBS AG on September 21, 2012.

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