Commodities

ETRACS CMCI Short Platinum Excess Return

The ETRACS CMCI Short Platinum Excess Return is designed to track the short, or inverse, performance of the UBS Bloomberg CMCI Platinum Excess Return (the "Index"), plus a fixed income return based on a hypothetical 91-day Treasury Bill portfolio, less investor fees. The Index measures the uncollateralized returns from a basket of platinum futures contracts. The commodity futures contracts are targeted for a constant maturity of three months.

The Index was created in March 2008 and has no performance history prior to that date.

Market data
Returns
Index composition

Index comparisons
Maturity weights
Risk considerations

Product profile

Product Name	ETRACS CMCI Short Platinum Excess Return
Underlying Product	Inverse of UBS Bloomberg CMCI Platinum Excess Return
Issuer	UBS AG
Ticker Symbol	PTD
CUSIP	902641729
Primary Exchange	NYSE Arca
Initial Trade Date	May 08, 2008
Maturity Date	May 14, 2018
Fee Amount (%)*	0.65% per annum accrued on a daily basis

* As of December 31, 2010. See 'Risk considerations' as well as the 'Important legal information specific to ETRACS ETNs' link below for more information

Market data

Closing Price	27.63	Volume	350
Net Change	0.00	20 Day Volume Average	47.50
% Change	0.00	Shares Outstanding	110,000
High (52 week)	35.25	Market Cap	3,039,299.96
Low (52 week)	23.45	Daily Indicative Value	32.63
Updated on: May 15, 2012

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Returns

	Excess return*	Annualized return*	3 Month	1 Year	2 Years
CMCI Platinum Excess Return	-16.19%	-6.21%	5.47%	19.74%	35.69
Platinum Spot Price ($/oz.)	-11.31%	-4.27%	5.36%	20.79%	37.63

*Since inception

Historical results for the period from March 31, 2008 through December 31, 2010.

Source: UBS Investment Bank, publicly available data.

Historical information presented is as of December 31, 2010 and is furnished as a matter of information only. Historical performance of the Index is not an indication of future performance. Future performance of the Index may different significantly from historical performance, either positively or negatively.

The ETRACS ETNs are subject to investor fees. As a result, the return on the ETNs will always be lower than the total return on a direct investment in the Index or the Index constituents.

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Index composition - UBS Bloomberg CMCI Platinum ER

Platinum	100.00%
Updated on: December 31, 2010

Source: UBS Investment Bank.

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Index comparisons

Source: UBS Investment Bank, CMCI Advisory Committee.

The graph above illustrates the historical returns of the Index from March 31, 2008 through December 31, 2010 in comparison with the spot price of platinum in $/oz.

Historical performance of the Index is not an indication of future performance. Future performance of the Index may differ significantly from historical performance, either positively or negatively.

The ETRACS ETNs are subject to investor fees. As a result, the return on the ETNs will always be lower than the total return on a direct investment in the Index or the Index constituents.

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Maturity weights

Constant maturity weights of Future Contracts

Source: UBS Investment Bank, CMCI Advisory Committee. As of December 2010

Weights across maturities are determined based on the relative liquidity of the underlying futures contracts.

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Risk considerations

An investment in the ETRACS ETNs involves risks. Selected risks are summarized here, but we urge you to read the more detailed explanation of risks described under "Risk Factors" beginning on page S-12 in the prospectus supplement for the ETRACS ETNs (the "ETRACS Prospectus"). Capitalized terms used below but not defined herein shall have the meanings attributed to them in the ETRACS Prospectus.

You may lose some or all of your principal — The ETRACS ETNs are fully exposed to any increase in the level of the Index. You will lose some or all of your principal if the Index Ending Level is above the Index Starting Level or if the Index Ending Level is not sufficiently below the Index Starting Level to offset the cumulative effect of the Fee Amount applicable to your ETRACS ETNs. The Index is volatile and subject to a variety of market forces, some of which are described below. The Index Ending Level is therefore unpredictable. Commodity prices may change unpredictably, affecting the prices of the commodities underlying the exchange-traded futures contracts comprising the Index and, consequently, the value of the ETRACS ETNs.
Limited performance history — The payment at maturity, call, acceleration or early redemption on the ETRACS ETNs is linked to the inverse performance of the Index, which was introduced in March 2008. As a result, the Index has a limited performance history, and it is uncertain how the Index will perform. In addition, while the Index is intended to represent a benchmark for commodities investments in platinum, the methodology used to achieve this benchmarking has a limited history in its application. It therefore cannot be determined at this point whether, or the extent to which, the Index will serve as an adequate benchmark for the performance of the platinum market.
Market risk — The return on the ETRACS ETNs, which may be positive or negative, is directly linked to the inverse performance of the Index, which is based on a variety of market and economic factors, interest rates in the markets and economic, financial, political, regulatory, judicial or other events that affect the markets generally.
Credit of UBS — The ETRACS ETNs are senior unsecured debt obligations of the issuer, UBS, and are not, either directly or indirectly, an obligation of any third party. Any payment to be made on the ETRACS ETNs depends on the ability of UBS to satisfy its obligations as they come due. As a result, the actual and perceived creditworthiness of UBS may affect the market value of the ETRACS ETNs and, in the event UBS were to default on its obligations, you may not receive any amounts owed to you under the terms of the ETRACS ETNs.
Potential over-concentration in a particular commodity — There is only one commodity – platinum – underlying the futures contracts included in the Index. Investment in the ETRACS ETNs will increase your portfolio's exposure to fluctuations in the platinum markets and may not offer the same benefits of diversification as other investments.
A trading market for the ETRACS ETNs may not develop — Although the ETRACS ETNs are listed on NYSE Arca, a trading market for the ETRACS ETNs may not develop. Certain affiliates of UBS may engage in limited purchase and resale transactions in the ETRACS ETNs, although they are not required to and may stop at any time. We are not required to maintain any listing of the ETRACS ETNs on NYSE Arca or any other exchange.
No interest payments from the ETRACS ETNs — You will not receive any interest payments on the ETRACS ETNs.
Minimum Redemption Amount — You must elect to redeem at least 50,000 ETRACS ETNs for UBS to repurchase your ETRACS ETNs, unless we determine otherwise or your broker or other financial intermediary bundles your ETRACS ETNs for redemption with those of other investors to reach this minimum requirement.
UBS' Contingent Call Right — UBS may elect to redeem all outstanding ETRACS ETNs if the aggregate principal amount of ETRACS ETNs outstanding is less than $10,000,000 as described under ''Specific Terms of the Securities — UBS Contingent Call Right'' beginning on page S-39 of the ETRACS Prospectus.
Potential Automatic Acceleration — In the event the indicative value of the ETRACS ETNs is equal to $7.50 or less on any trading day, the ETRACS ETNs will be automatically accelerated and mandatorily redeemed by UBS and you will receive a cash payment equal to the Acceleration Amount as determined during the valuation period. The amount you receive may be significantly less than $7.50 per ETRACS ETN and may be zero if the level of the Index continues to increase during trading on the trading day acceleration is triggered as measured by the Index Ending Level on one or more Valuation Dates during the Valuation Period.

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