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ETRACS ISE Solid State Drive Index ETN

The ETRACS ISE Solid State Drive Index ETN (SSDD) is a series of the ETNs that provides exposure to the performance of the ISE Solid State Drive™ Index (the "Index"), reduced by accrued fees. SSDD provides exposure to the performance of the Index, reduced by an accrued tracking fee. The Index has been created to provide investors with a product allowing them to quickly take advantage of both event-driven news and long term economic trends as the market for solid state drive technology continues to evolve. The Index uses an equal weighted allocation across the drive manufacturer and component manufacturer categories as well as an equal weighted allocation methodology for all components within each sector category. Index components are reviewed quarterly for eligibility, and the weights are re-set according to that distribution.

The Index was created on August 26, 2011 and has no performance history prior to that date.

Key benefits & Selected risk considerations

Benefits:

• Gain either unleveraged or leveraged exposure to a portfolio of companies actively involved in the solid state drive segment of the electronic storage industry.
• Eleven drive and component manufacturer stocks initially comprise the Index.
• Index construction allows for the addition of new Index Constituents as they become public and fit the index criteria.

Selected 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 in the "Risk Factors" section of 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 ISE Solid State Drive Index ETN (the "Unleveraged ETN") is exposed to any monthly decline in the level of the Index and the ETRACS Monthly 2xLeveraged ISE Solid State Drive Index ETN (the "Leveraged ETN") is exposed to two times any monthly decline in the level of the Index. Because the negative effect of the Accrued Fees reduce your final payment, the return, or, for the Leveraged ETN, the leveraged 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, or, for the Leveraged ETN, the leveraged 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, or, for the Leveraged ETN, the leveraged 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.
• Leverage risk of the leveraged ETN — The Leveraged ETN is two times leveraged with respect to the Index, which means that you will benefit two times from any beneficial, but will be exposed to two times any adverse, monthly performance of the Index, before the negative effect of the Accrued Fees and any Redemption Fee.
• 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 — the solid state drive segment of the electronic storage industry — represented in 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 has been approved for listing on NYSE Arca, a trading market for any series of 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.
• No redemption prior to September 26, 2011 — You may elect to redeem your ETNs on or after September 26, 2011. Accordingly, your ability to liquidate the ETNs may be limited prior to this date.
• Minimum redemption amount — You must elect to redeem at least 50,000 of your series 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.
• Limited performance history — The Index was launched on August 26, 2011, and therefore has no performance history prior to that date. Because the Index has no history prior to August 26, 2011, little or no historical information will be available for you to consider in making an independent investigation of the Index performance, which may make it difficult for you to make an informed decision with respect to an investment in the ETNs.
• 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 series of 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's Call Right — UBS may elect to redeem all outstanding ETNs of any series at any time on or after September 19, 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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Important legal information specific to ETRACS ETNs Important legal and regulatory information: Disclaimer  Privacy policy  Business continuity (pdf)

UBS has filed a registration statement (including a prospectus, as supplemented by a prospectus supplement for each offering of the ETRACS ETNs) with the Securities and Exchange Commission (the "SEC") for the offerings to which this communication relates. Before you invest, you should read these documents and any other documents that UBS has filed with the SEC for more complete information about UBS and the offerings to which this communication relates. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, you can request the prospectus and any applicable prospectus supplement by calling toll-free (+1-877-387 2275).

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