Master Limited Partnerships

ETRACS Alerian MLP Infrastructure Index

The ETRACS Alerian MLP Infrastructure Index is designed to track the performance of the Alerian MLP Infrastructure Index (the "Index") and pay a variable quarterly coupon linked to the cash distributions paid on the Master Limited Partnerships in the index, less investor fees. The Index, comprised of 25 energy infrastructure Master Limited Partnerships, is a liquid, midstream-focused subset of the Alerian MLP Index (NYSE: AMZ). The Index, whose constituents generally earn the majority of their cash flow from the transportation and storage of energy commodities, provides investors with a benchmark for the infrastructure component of this emerging asset class. The Index is calculated using a capped, float-adjusted, capitalization-weighted methodology that results in greater diversification versus a pure market capitalization-weighted index.

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

Market data
Distributions
Historical returns

Constituent weightings
Index comparisons
Risks & Benefits

Profile

Name	ETRACS Alerian MLP Infrastructure Index
Underlying Index	Alerian MLP Infrastructure Index (AMZI)
Issuer	UBS AG
Current Annual Index Yield*	6.00%
Ticker Symbol	MLPI
CUSIP	902641646
Primary Exchange	NYSE Arca
Initial Trade Date	March 31, 2010
Maturity Date	April 2, 2040
Annual Tracking Fee (%)	0.85% per annum accrued on a daily basis

* As of September 28, 2012. See 'Risk considerations & Benefits' as well as the 'Important legal information specific to ETRACS ETNs' link below for more information.

The Current Annual Index Yield is calculated by Alerian and is based on a modified indicative formula, which takes the most recently declared quarterly distribution of each of the Master Limited Partnerships that constitute the Index ("constituent MLP"), and creates an annualized yield for each constituent MLP by (i) multiplying that number by four and (ii) dividing the resulting number by the current market price of the applicable constituent MLP. The Current Annual Index Yield is the sum of the products of those individual yields of each constituent MLP and their relative weights in the Index. The formula is considered "modified" indicative because in certain circumstances, Alerian can ignore the most recently declared distribution in its calculations and instead use an alternative distribution amount (derived from public sources) that, in its opinion, better reflects an investor's expectation of future distributions using all publicly available information. You are not guaranteed any coupon or distribution amount under the ETN.

Market data

Closing Price	39.07	Volume	508,174
Net Change	0.12	20 Day Volume Average	289,401.09
% Change	0.00	Shares Outstanding	23,186,460
High (52 week)	39.27	Market Cap	905,894,958.50
Low (52 week)	29.17	Daily Indicative Value	39.05
Updated on: May 20, 2013

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Distributions

Payment date	Amount per security	Ex-date	Record date
01/23/2013	$0.4340	01/10/2013	01/14/2013
Total annual dividend paid 2012: $1.6605
10/22/2012	$0.4279	10/10/2012	10/12/2012
07/24/2012	$0.4182	07/12/2012	07/16/2012
04/23/2012	$0.4084	04/11/2012	04/13/2012
01/24/2012	$0.4060	01/11/2012	01/13/2012
Total annual dividend paid 2011: $1.5665
01/24/2012	$0.4060	01/11/2012	01/13/2012
10/21/2011	$0.4023	10/11/2011	10/13/2011
07/22/2011	$0.3902	07/12/2011	07/14/2011
04/20/2011	$0.3887	04/08/2011	04/12/2011
01/21/2011	$0.3853	01/10/2011	01/12/2011
Total annual dividend paid 2010: $0.3845
10/21/2010	$0.3845	10/08/2010	10/13/2010

Source: UBS, NYSE and Bloomberg.

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Historical returns

	Total return*	Annualized return*	6 Months	1 Year	3 Years
Alerian MLP Infrastructure Index	116.35%	18.18%	3.38%	15.13%	24.73%
Alerian MLP Index	109.20%	17.33%	4.59%	15.00%	24.11%
S&P 500® Index	17.59%	3.57%	2.16%	15.16%	13.20%
S&P 500 Utilities® Index	19.11%	3.86%	5.58%	10.51%	13.93%
Dow Jones-UBS Commodity Index^SM	-26.64%	-6.49%	1.08%	-4.42%	2.77%

*Since inception

Historical results for the period from March 20, 2008 through October 31, 2012.

Source: Bloomberg

Historical information presented is as of October 31, 2012 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 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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Constituent weightings

Company Name	Symbol	Index Weight
Enterprise Products Partners LP	EPD	9.49%
Kinder Morgan Energy Partners LP	KMP	9.31%
Magellan Midstream Partners LP	MMP	7.04%
Energy Transfer Partners LP	ETP	6.95%
Plains All American Pipeline LP	PAA	6.90%
ONEOK Partners LP	OKS	6.09%
MarkWest Energy Partners LP	MWE	4.80%
Enbridge Energy Partners LP	EEP	4.80%
Williams Partners LP	WPZ	4.69%
El Paso Pipeline Partners LP	EPB	4.36%
Buckeye Partners LP	BPL	3.91%
Sunoco Logistics Partners LP	SXL	3.24%
Targa Resources Partners LP	NGLS	3.02%
Regency Energy Partners LP	RGP	2.87%
NuStar Energy LP	NS	2.73%
Western Gas Partners LP	WES	2.47%
Boardwalk Pipeline Partners LP	BWP	2.47%
PVR Partners LP	PVR	2.34%
Genesis Energy LP	GEL	2.32%
Copano Energy LLC	CPNO	2.26%
Access Midstream Partners LP	ACMP	1.89%
Atlas Pipeline Partners LP	APL	1.74%
DCP Midstream Partners LP	DPM	1.73%
TC Pipelines LP	TCP	1.38%
Spectra Energy Partners LP	SEP	1.18%
		100.00%

Source: Alerian, As of December 21, 2012
[AMZI index underlies MLPI and MLPL]

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Index comparisons

Index comparisons graph

The graph above illustrates the historical returns of the Index from March 20, 2008 through October 31, 2012 in comparison with other benchmark indices.

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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Key benefits & Selected risk considerations

Benefits:

Exposure to a portfolio of energy infrastructure MLPs through a single investment.
Income via variable quarterly coupons linked to the cash distributions, if any, paid on the MLPs in the Index, less fees. If the MLPs do not make distributions, or those distributions do not overcome the investor fees, then investors will not receive any coupons.
Tax administration - The coupons associated with the ETN are reported as ordinary income on Form 1099, and therefore the administrative burden associated with K-1 forms is eliminated.

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 (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 ETNs are fully exposed to any decline in the level of the Index, as measured by the VWAP Level. If the increase in the level of the Index, as measured by the Final VWAP Level, as compared to the Initial VWAP Level, is insufficient to offset the negative effect of the Annual Tracking Fee and Redemption Fee Amount, if applicable, less any Coupon Amounts, any Stub Reference Distribution Amount and/or Adjusted Coupon Amount, as applicable, or if the level of the Index, as measured by the Final VWAP Level is less than the Initial VWAP Level, you will lose some or all of your investment at maturity or call, or upon early redemption.
Payment based on VWAP Level - The payment on the ETRACS ETNs at maturity, call, or upon early redemption, will be based on the VWAP Level of the Index and not on the closing level of the Index, as specified in the ETRACS Prospectus. The VWAP Level of the Index will most likely differ from the closing level of the Index.
Market risk - The return on the ETRACS ETNs, which may be positive or negative, is linked to the return on the Index as measured by the Index Performance Ratio, and 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.
Limited performance history - The return on the ETRACS ETNs is linked to the 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. Limited historical information will be available for you to consider in making an independent investigation of the Index performance, which may make it more difficult for you to make an informed decision with respect to an investment in the ETRACS ETNs than if the Index had a longer performance history.
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, including any payment at maturity 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 ETRACS ETNs prior to maturity, call or 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 ETRACS ETNs.
Potential over-concentration in a particular industry - There is only one industry - energy - related to the MLPs included in the Index. An investment in the ETRACS ETNs will increase your portfolio’s exposure to fluctuations in the energy industry.
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. Therefore, the liquidity of the ETRACS ETNs may be limited.
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. Therefore, the liquidity of the ETRACS ETNs may be limited.
You are not guaranteed a coupon payment - You will not receive a coupon payment on a Coupon Payment Date if the Reference Distribution Amount is less than the Accrued Tracking Fee (which is based on the Annual Tracking Fee). Similarly, you will not receive a coupon payment on a Redemption Date, the Call Settlement Date or the Acceleration Settlement Date if the Adjusted Reference Distribution Amount is less than the Adjusted Tracking Fee (which is based on the Annual Tracking Fee), and in the case of a redemption, the Redemption Fee Amount.
Uncertain tax treatment - Significant aspects of the tax treatment of the ETRACS 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 ETRACS ETNs at any time as described under ‘‘Specific Terms of the Securities - UBS’s Call Right’’ in the ETRACS Prospectus. If UBS exercises its Call Right, the Call Settlement Amount may be less than the Principal Amount of your ETRACS ETNs.

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