New Issue: UBS prices $5.95 million autocallable optimization securities tied to Rio Tinto

By Angela McDaniels

Tacoma, Wash., Dec. 17 - UBS AG, London Branch priced $5.95 million of 0% autocallable optimization securities with contingent protection due Dec. 22, 2011 linked to the American Depositary Shares of Rio Tinto plc, according to a 424B2 filing with the Securities and Exchange Commission.

If Rio Tinto ADSs close at or above the initial ADS 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 23%.

The payout at maturity will be par if the ADSs finish at or above 75% of the initial price. Otherwise, investors will be fully exposed to the 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 shares:	Rio Tinto plc (NYSE: RTP)
Amount:	$5,954,600
Maturity:	Dec. 22, 2011
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	If final ADS price is greater than or equal to trigger price, par; otherwise, par plus ADS return
Call:	At par plus annualized call premium of 23% if Rio Tinto ADSs close at or above initial ADS price on any of 12 monthly observation dates
Initial ADS price:	$68.93
Trigger price:	$51.70, 75% of initial price
Pricing date:	Dec. 15
Settlement date:	Dec. 21
Underwriters:	UBS Financial Services Inc. and UBS Investment Bank
Fees:	1.25%
Cusip:	90267F378

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