Equities

ETRACS Next Generation Internet ETN

The ETRACS Next Generation Internet ETN provides exposure to the performance of the UBS Next Generation Internet Index (the "Index"), reduced by an accrued tracking fee. The Index (NYSE ticker symbol "NETIPO") is intended to measure, on a total-return basis, the performance of a subset of Internet companies listed on the New York Stock Exchange or The Nasdaq Stock Market, Inc. that satisfy specified market capitalization and other eligibility requirements (the "Index Constituents"). The Index provides exposure specifically to those Internet companies that have been publicly traded for less than three years. Standard & Poor's serves as the calculation agent for the Index.

The Index was created in July 2011 and has no performance history prior to that date.

Constituent weightings
Changes to Index Constituents

Market data
Risks & Benefits

Profile

Name	ETRACS Next Generation Internet ETN
Underlying Index	UBS Next Generation Internet Index
Issuer	UBS AG
Ticker Symbol	EIPO
Index Ticker	NETIPO
CUSIP	90268A774
Primary Exchange	NYSE Arca
Initial Trade Date	July 20, 2011
Maturity Date	July 19, 2041
Annual Tracking Fee (%)*	0.65% accrued on a daily basis

* As of December 31, 2011. See 'Risk considerations & Benefits' as well as the 'Important legal information specific to ETRACS ETNs' link below for more information

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Constituent weightings

Name	Ticker	Weight
LinkedIn Corporation	LNKD	10.78%
Yandex NV	YNDX	9.89%
Facebook Inc.	FB	9.71%
Groupon, Inc.	GRPN	8.47%
Manchester United Ltd. Cl A	MANU	6.52%
HomeAway Inc.	AWAY	5.79%
Pandora Media, Inc.	P	4.57%
Qihoo 360 Technology Co. Ltd.-ADR	QIHU	4.36%
Cornerstone OnDemand Inc.	CSOD	4.08%
ExactTarget Inc.	ET	3.54%
Youku Inc.	YOKU	3.45%
Yelp Inc.	YELP	3.34%
SouFun Holdings Ltd.	SFUN	3.10%
Vipshop Holdings Ltd	VIPS	2.92%
Bankrate Inc.	RATE	2.56%
Angie’s List Inc.	ANGI	2.37%
Renren, Inc..-ADR	RENN	1.77%
Xoom Corp	XOOM	1.74%
Demandware Inc.	DWRE	1.70%
Trulia Inc.	TRLA	1.69%
Demand Media, Inc.	DMD	1.55%
Millennial Media Inc.	MM	1.51%
E2open Inc.	EOPN	1.20%
Bazaarvoice Inc.	BV	1.06%
Responsys, Inc.	MKTG	0.96%
IntraLinks Holdings, Inc.	IL	0.73%
The Active Network Inc.	ACTV	0.63%
		100.00%

Source: Standard & Poor's, as of March 6, 2013
[NETIPO index underlies EIPO and EIPL]

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Changes to Index Constituents

Changes to Index Constituents
Updated on: May 24, 2013

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Market data

Closing Price	17.53	Volume	1,017
Net Change	-0.18	20 Day Volume Average	694.05
% Change	-0.01	Shares Outstanding	400,000
High (52 week)	18.50	Market Cap	7,012,000.08
Low (52 week)	12.20	Daily Indicative Value	17.56
Updated on: May 24, 2013

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Key benefits & Selected risk considerations

Benefits:

Gain unleveraged exposure to a portfolio of recently listed Internet-related companies by way of a single, convenient exchange-traded security (EIPO).
Twenty social networking, Internet software and Internet services stocks initially comprise the Index, representing the latest generation of Internet-related stocks.
Innovative Index construction allows for the addition of new Index Constituents within weeks after their IPOs.
A monthly index rebalancing feature and a 3-year age limit ensure that Index Constituents remain up-to-date and relevant.

Selected risk considerations:

An investment in the ETNs involves risks. Selected risks are summarized here, but we urge you to read the more detailed explanation of risks described in the "Risk Factors" section of the prospectus supplement for the ETNs (the "ETRACS Prospectus"). Capitalized terms used below (and elsewhere in this document) 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 Next Generation Internet ETN (the "Unleveraged ETN") is exposed to any monthly decline in the level of the Index. Because the negative effect of the Accrued Fees reduce your final payment, the monthly return of the Index will need to be sufficient to offset the negative effect of the Accrued Fees and the Redemption Fee, if applicable, in order for you to receive an aggregate amount over the term of the ETNs equal to your initial investment in the ETNs. If the monthly return of the Index is insufficient to offset the negative effect of the Accrued Fees and Redemption Fee, if applicable, or if the monthly return of the Index is negative, you will lose some or all of your investment at maturity or call, upon acceleration or upon early redemption.
Correlation and compounding risk - A number of factors may affect the ETNs' ability to achieve a high degree of correlation with the performance of the Index, and there can be no guarantee that the ETNs will achieve a high degree of correlation. Because the Current Principal Amount is reset monthly, you will be exposed to compounding of monthly returns. As a result, the performance of the Leveraged ETN for periods greater than one month is likely to be either greater than or less than twice the Index performance, before accounting for the Accrued Fees and the Redemption Fee, if any. In particular, the impact of significant adverse monthly performances of the Index on your ETNs may not be offset by subsequent beneficial monthly performances of the Index of equal magnitude.
Market risk - The return on the ETNs, which may be positive or negative, is linked to the monthly return, or, for the Leveraged ETN, the leveraged monthly return, of the Index. The monthly return of the Index is measured by the Index Performance Ratio, which, in turn, is affected by 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 issuer - The 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 ETNs, including any payment at maturity or call, upon acceleration or upon early redemption, depends on the ability of UBS to satisfy its obligations as they come due. As a result, the actual and perceived creditworthiness of UBS will affect the market value, if any, of the ETNs prior to maturity or call, upon acceleration or upon early redemption. In addition, in the event UBS were to default on its obligations, you may not receive any amounts owed to you under the terms of the ETNs.
Potential over-concentration in a particular market segment - There is only one market segment - Internet technology- related to the Index. An investment in the ETNs will increase your portfolio's exposure to fluctuations in the value of the Index Constituents.
A trading market for the ETNs may not develop - Although each series of ETNs is listed on NYSE Arca, a trading market for the ETNs may not develop. Certain affiliates of UBS may engage in limited purchase and resale transactions in any series of the ETNs, although they are not required to and may stop at any time. We are not required to maintain the listing of any series of the ETNs on NYSE Arca or any other exchange. In addition, we are not obliged to, and may not, sell the full aggregate principal amount of any series of the ETNs. We may suspend or cease sales of any series of the ETNs at any time, at our discretion. Therefore, the liquidity of the ETNs may be limited.
Minimum redemption amount - You must elect to redeem at least 50,000 of ETNs for UBS to repurchase your ETNs, unless we determine otherwise or your broker or other financial intermediary bundles your ETNs for redemption with those of other investors to reach this minimum requirement. Therefore, the liquidity of the ETNs may be limited.
Your redemption election is irrevocable - You will not be able to rescind your election to redeem your ETNs after your redemption notice is received by UBS. Accordingly, you will be exposed to market risk in the event market conditions change after UBS receives your offer and the Redemption Amount is determined on the Redemption Valuation Date.
Potential automatic acceleration - In the event the indicative value of any series of the ETNs is equal to $5.00 or less on any Trading Day or decreases 60% from the closing indicative value on the previous Monthly Valuation Date, the 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 Acceleration Measurement Period. The Acceleration Amount you receive on the Acceleration Settlement Date may be significantly less than $5.00 per ETN and may be zero if the level of the Index continues to decrease during trading on one or more Trading Days during the Acceleration Measurement Period as measured by the Index Performance Ratio on one or more Trading Days during the Acceleration Measurement Period.
No interest payments from the ETNs - You will not receive any interest payments or other distributions on the ETNs.
Owning the ETNs is not the same as owning the Index constituent stocks - The return on your ETNs may not reflect the return you would realize if you actually owned the underlying equity securities of the Index Constituents. For instance, you will not receive or be entitled to receive any dividend payments or other distributions on the Index constituent stocks over the term of your ETNs (however, because the ETNs are linked to a total return index, dividends paid on one or more Index Constituent stocks are treated as being reinvested in the Index).
Uncertain tax treatment - Significant aspects of the tax treatment of the ETNs are uncertain. You should consult your own tax advisor about your own tax situation.
UBS Call Right - UBS may elect to redeem all outstanding ETNs of any series at any time on or after July 23, 2012, as described under "Specific Terms of the Securities - UBS Call Right" in the ETRACS Prospectus. If UBS exercises its Call Right, the Call Settlement Amount may be less than your initial investment in the ETNs of that series.

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