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UBS AG Amends Four of its ETRACS ETNs

  UBS AG Amends Four of its ETRACS ETNs

Business Wire

NEW YORK -- August 7, 2013

UBS AG announces that it has executed a supplemental indenture with U.S. Bank
Trust National Association, as Trustee, in order to amend the definition of
“Call Settlement Date” in the following UBS AG ETRACS (the “Securities”):

                                                       
ETRACS                                     Cusip Number       NYSE Arca Ticker
                                                              Symbol
ETRACS Linked to the Dow Jones U.S.
Select Dividend Index due May 22,          90268G607          DVYL
2042
ETRACS Linked to the Dow Jones
Global ex-U.S. Select Real Estate          90268A667          RWXL
Securities Index due March 19, 2042
ETRACS Linked to the S&P High Yield
Dividend Aristocrats Index due May         90267L409          SDYL
22, 2042
ETRACS Linked to the Market Vectors
Global Mortgage REITs Index due            90269A302          MORL
October 16, 2042
                                                              

Call Settlement Date is now defined as “at least three, but not greater than
six, Trading Days following the last Trading Day in the Call Measurement
Period”. Capitalized terms used in such definition have their meanings defined
in the above-referenced Securities.

The pricing supplements and product supplement relating to the Securities can
be found on EDGAR, the SEC website at: www.sec.gov, as well as on the product
website at etracs.ubs.com.

About ETRACS

For further information about ETRACS ETNs, go to http://www.etracs.com.

ETRACS ETNs are exchange-traded notes, an innovative class of investment
products offering access to markets and strategies that may not be readily
available to investors, and offer unique diversification opportunities in a
number of different sectors. ETRACS ETNs offer:

  *Access to asset classes with historically low correlations to more
    traditional asset classes
  *Convenience of an exchange-traded security
  *Transparent exposure to a published index

ETRACS ETNs are senior unsecured notes issued by UBS AG, are traded on NYSE
Arca, and can be bought and sold through a broker or financial advisor. An
investment in ETRACS ETNs is subject to a number of risks, including the risk
of loss of some or all of the investor’s principal, and is subject to the
creditworthiness of UBS AG. You are not guaranteed any coupon or distribution
amount under the ETNs. We urge you to read the more detailed explanation of
risks described under “Risk Factors” in the product supplement and applicable
pricing supplement for the ETRACS ETN.

This material is issued by UBS AG or an affiliate thereof ("UBS"). Products
and services mentioned in this publication may not be available for residents
of certain jurisdictions. Past performance is not necessarily indicative of
future results. Please consult the restrictions relating to the product or
service in question for further information. Activities with respect to US
securities are conducted through UBS Securities LLC, a US broker/dealer.
Member of SIPC (http://www.sipc.org/).

ETRACS ETNs are sold only in conjunction with the relevant offering materials.
The contents of any website referred to in this communication are not part of,
or incorporated by reference in, this communication. UBS has filed a
registration statement (including a prospectus, as supplemented by a product
supplement and pricing 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 offering 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 the applicable
product supplement and pricing supplement by calling toll-free
(+1.877.387.2275). In the US, securities underwriting, trading and brokerage
activities and M&A advisor activities are provided by UBS Securities LLC, a
registered broker/dealer that is a wholly owned subsidiary of UBS AG, a member
of the New York Stock Exchange and other principal exchanges, and a member of
SIPC. UBS Financial Services Inc. is a registered broker/dealer and affiliate
of UBS Securities LLC.

Neither the ETRACS Monthly Pay 2xLeveraged Dow Jones International Real Estate
ETN nor the ETRACS Monthly Pay 2xLeveraged Dow Jones Select Dividend Index ETN
(together, “ETNs”) are sponsored, endorsed, sold or promoted by Dow Jones, CME
or their respective affiliates. Dow Jones, CME and their respective affiliates
make no representation or warranty, express or implied, to the owners of the
ETNs or any member of the public regarding the advisability of trading in the
Securities. Dow Jones', CME’s and their respective affiliates’ only
relationship to UBS is the licensing of certain trademarks and trade names of
Dow Jones, the Dow Jones Global ex-U.S. Select Real Estate Securities Index,
and the Dow Jones U.S. Select Dividend Index which are determined, composed
and calculated by CME without regard to UBS or the ETNs. Dow Jones and CME
have no obligation to take the needs of UBS AG or the owners of the ETNs into
consideration in determining, composing or calculating “Dow Jones Global
ex-U.S. Select Real Estate Securities IndexSM” or the “Dow Jones U.S. Select
Dividend IndexSM”. Dow Jones, CME and their respective affiliates are not
responsible for and have not participated in the determination of the timing
of, prices at, or quantities of the ETNs to be sold or in the determination or
calculation of the equation by which the ETNs are to be converted into cash.
Dow Jones, CME and their respective affiliates have no obligation or liability
in connection with the administration, marketing or trading of the ETNs.
Notwithstanding the foregoing, CME Group Inc. and its affiliates may
independently issue and/or sponsor financial products unrelated to the ETNs
currently being issued by UBS, but which may be similar to and competitive
with the ETNs. In addition, CME Group Inc. and its affiliates may trade
financial products which are linked to the performance of the Dow Jones Global
ex-U.S. Select Real Estate Securities IndexSM or the Dow Jones U.S. Select
Dividend IndexSM. It is possible that this trading activity will affect the
value of the Dow Jones Global ex-U.S. Select Real Estate Securities IndexSM,
the Dow Jones U.S. Select Dividend Index^SM, or the ETNs.

DOW JONES, CME AND THEIR RESPECTIVE AFFILIATES DO NOT GUARANTEE THE ACCURACY
AND/OR THE COMPLETENESS OF THE DOW JONES GLOBAL EX-U.S. SELECT REAL ESTATE
SECURITIES INDEXSM, THE DOW JONES U.S. SELECT DIVIDEND INDEXSM OR ANY DATA
INCLUDED THEREIN AND DOW JONES, CME AND THEIR RESPECTIVE AFFILIATES SHALL HAVE
NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. DOW JONES,
CME AND THEIR RESPECTIVE AFFILIATES MAKE NO WARRANTY, EXPRESS OR IMPLIED, AS
TO RESULTS TO BE OBTAINED BY UBS, OWNERS OF THE ETNs, OR ANY OTHER PERSON OR
ENTITY FROM THE USE OF THE DOW JONES GLOBAL EX-U.S. SELECT REAL ESTATE
SECURITIES INDEX, THE DOW JONES U.S. SELECT DIVIDEND INDEXSM OR ANY DATA
INCLUDED THEREIN. DOW JONES, CME AND THEIR RESPECTIVE AFFILIATES MAKE NO
EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES, OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE
DOW JONES GLOBAL EX-U.S. SELECT REAL ESTATE SECURITIES INDEXSM, THE DOW JONES
U.S. SELECT DIVIDEND INDEXSM OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING
ANY OF THE FOREGOING, IN NO EVENT SHALL DOW JONES, CME OR THEIR RESPECTIVE
AFFILIATES HAVE ANY LIABILITY FOR ANY LOST PROFITS OR INDIRECT, PUNITIVE,
SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES, EVEN IF NOTIFIED OF THE
POSSIBILITY OF SUCH DAMAGES. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY
AGREEMENTS OR ARRANGEMENTS BETWEEN CME AND UBS, OTHER THAN THE LICENSORS OF
CME.

Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill
Companies, Inc. (“S&P”) and UBS have entered into a non-exclusive license
agreement providing for the license to UBS, and certain of its affiliates, in
exchange for a fee, of the right to use the S&P High Yield Dividend
Aristocrats^® Index, in connection with securities, including the ETRACS
Monthly Pay 2xLeveraged S&P Dividend ETN (“ETN”). The S&P High Yield Dividend
Aristocrats^® Index is owned and published by S&P. The ETN is not sponsored,
endorsed, sold or promoted by S&P or its third party licensors. Neither S&P
nor its third party licensors make any representation or warranty, express or
implied, to the owners of the ETN or any member of the public regarding the
advisability of investing in securities generally or in the ETN particularly
or the ability of the S&P High Yield Dividend Aristocrats^® Index to track
general stock market performance. S&P’s and its third party licensor’s only
relationship to UBS is the licensing of certain trademarks and trade names of
S&P and the third party licensors and of the S&P High Yield Dividend
Aristocrats^® Index which is determined, composed and calculated by S&P or its
third party licensors without regard to UBS or the ETN. S&P and its third
party licensors have no obligation to take the needs of UBS or the owners of
the ETN into consideration in determining, composing or calculating the S&P
High Yield Dividend Aristocrats^® Index. Neither S&P nor its third party
licensors is responsible for and has not participated in the determination of
the prices and amount of the ETN or the timing of the issuance or sale of the
ETN or in the determination or calculation of the equation by which the ETN is
to be converted into cash. S&P has no obligation or liability in connection
with the administration, marketing or trading of the ETN.

NEITHER S&P, ITS AFFILIATES NOR THEIR THIRD PARTY LICENSORS GUARANTEE THE
ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE S&P HIGH YIELD DIVIDEND
ARISTOCRATS® INDEX OR ANY DATA INCLUDED THEREIN OR ANY COMMUNICATIONS,
INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATIONS (INCLUDING
ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P, ITS AFFILIATES AND THEIR
THIRD PARTY LICENSORS SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY
ERRORS, OMISSIONS OR DELAYS THEREIN. S&P MAKES NO EXPRESS OR IMPLIED
WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE MARKS, THE S&P
HIGH YIELD DIVIDEND ARISTOCRATS® INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT
LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P, ITS
AFFILIATES OR THEIR THIRD PARTY LICENSORS BE LIABLE FOR ANY INDIRECT, SPECIAL,
INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO,
LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT
LIABILITY OR OTHERWISE.

The ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN (“ETN”) is not sponsored,
endorsed, sold or promoted by Market Vectors Index Solutions GmbH (“Licensor”)
and Licensor makes no representation or warranty, express or implied, to the
owners of the ETN or any member of the public regarding the advisability of
investing in securities generally or in the ETN particularly or the ability of
the Market Vectors^® Global Mortgage REITs Index (“Index”) to track the
performance of the mortgage REIT market. The Index is the exclusive property
of Licensor, which has contracted with Structured Solutions AG to maintain and
calculate the Index. Structured Solutions AG uses its best efforts to ensure
that the Index is calculated correctly. Irrespective of its obligations
towards the Licensor, Structured Solutions AG has no obligation to point out
errors in the Index to third parties including but not limited to investors
and/or financial intermediaries of the financial instrument. The ETN is not
sponsored, promoted, sold or supported in any other manner by Structured
Solutions AG nor does Structured Solutions AG offer any express or implicit
guarantee or assurance either with regard to the results of using the Index
and/or Index trade mark or the Index Price at any time or in any other
respect. Neither publication of the Index by Structured Solutions AG nor the
licensing of the Index or Index trademark for the purpose of use in connection
with the financial instrument constitutes a recommendation by Structured
Solutions AG to invest capital in said financial instrument nor does it in any
way represent an assurance or opinion of Structured Solutions AG with regard
to any investment in this financial instrument. Structured Solutions AG is not
responsible for fulfilling the legal requirements concerning the accuracy and
completeness of the financial instrument’s prospectus.

The ETN is not sponsored, endorsed, sold or promoted by Van Eck Associates
Corporation (“Van Eck”). Van Eck makes no representation or warranty, express
or implied, nor accepts any responsibility, regarding the accuracy or
completeness of this Informational Material, or the advisability of investing
in securities or financial instruments, or in the ETN.

VAN ECK AND ITS AFFILIATES DO NOT GUARANTEE THE ACCURACY AND/OR COMPLETENESS
OF THE INDEX OF ANY DATA INCLUDED THEREIN AND SHALL NOT HAVE ANY LIABILITY FOR
ANY ERRORS, OMISSIONS, OR INTERRUPTIONS, AND MAKES NO WARRANTY, EXPRESS OR
IMPLIED, AS TO RESULTS TO BE OBTAINED BY OWNERS OF THE ETN, OR ANY OTHER
PERSON OR ENTITY FROM THE USE OF THE ETN. WITHOUT LIMITING ANY OF THE
FOREGOING, IN NO EVENT SHALL VAN ECK OR ANY OF ITS AFFILIATES HAVE ANY
LIABILITY FOR ANY LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL
DAMAGES OR LOSSES, EVEN IF NOTIFIED OF THE POSSIBILITY THEREOF.

UBS specifically prohibits the redistribution or reproduction of this material
in whole or in part without the prior written permission of UBS and UBS
accepts no liability whatsoever for the actions of third parties in this
respect. © UBS 2013. The key symbol, UBS and ETRACS are among the registered
and unregistered trademarks of UBS. All rights reserved.

Notes to Editors

About UBS

UBS draws on its 150-year heritage to serve private, institutional and
corporate clients worldwide, as well as retail clients in Switzerland. Its
business strategy is centered on its pre-eminent global wealth management
businesses and its universal bank in Switzerland. Together with a
client-focused Investment Bank and a strong, well-diversified Global Asset
Management business, UBS will expand its premier wealth management franchise
and drive further growth across the Group.

UBS is present in all major financial centers worldwide. It has offices in
more than 50 countries, with about 35% of its employees working in the
Americas, 36% in Switzerland, 17% in the rest of Europe, the Middle East and
Africa and 12% in Asia Pacific. UBS employs about 62,000 people around the
world. Its shares are listed on the SIX Swiss Exchange and the New York Stock
Exchange (NYSE).

www.ubs.com/media

Contact:

Media Enquiries
New York:
Megan Stinson, +1 212-713-1302
Judi Flynn-Echeverria, +1 917-902-9726
 
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