New Issue: UBS prices $750,000 17.21% reverse convertibles linked to AK Steel

By Jennifer Chiou

New York, Jan. 25 - UBS AG, London Branch priced $750,000 of 17.21% annualized reverse convertible notes due Aug. 1, 2011 linked to the common stock of AK Steel Holding Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

The payout at maturity will be par unless AK Steel stock falls below the trigger price - 75% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of AK Steel shares equal to $1,000 divided by the initial share price.

UBS Securities LLC and UBS Investment Bank are the underwriters.

Issuer:	UBS AG, London Branch
Issue:	Reverse convertible notes
Underlying stock:	AK Steel Holding Corp. (Symbol: AKS)
Amount:	$750,000
Maturity:	Aug. 1, 2011
Coupon:	17.21%, payable monthly
Price:	Par
Payout at maturity:	Par unless AK Steel stock falls below the trigger price - 75% of the initial share price - during the life of the notes and finishes below the initial share price, in which case the payout will be a number of AK Steel shares equal to $1,000 divided by the initial share price
Initial price:	$15.57
Protection level:	$11.68, 75% of initial price
Pricing date:	Jan. 25
Settlement date:	Feb. 1
Underwriters:	UBS Securities LLC and UBS Investment Bank
Fees:	1.5%
Cusip:	902674DX5

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