UBS Launches Exchange-Traded Note with Monthly-Resetting 2x Leveraged Exposure to the S&P 500® Total Return Index

  UBS Launches Exchange-Traded Note with Monthly-Resetting 2x Leveraged
  Exposure to the S&P 500® Total Return Index

         ETRACS Monthly Reset 2xLeveraged S&P 500^® Total Return ETN

Business Wire

NEW YORK -- March 26, 2014

UBS Investment Bank announced that today is the first day of trading on the
NYSE Arca^® for the  ETRACS Monthly Reset 2xLeveraged S&P 500^® Total Return
ETN (NYSE: SPLX). SPLX is linked to the monthly compounded 2x leveraged
performance of the S&P 500^® Total Return Index (the “Index”), reduced by
investor fees. As a "total return index", the Index reflects both the price
performance of the Index constituents and the reinvestment of dividends on the
Index constituents.

SPLX Profile      
                    
Underlying Index:   S&P 500^® Total Return Index
Leverage:           2x leverage that is reset monthly, not daily

SPLX Offers Investors:

  *Leverage that resets monthly means there are only 12 reset events per year
    versus approximately 252 reset events per year for leveraged securities
    having daily resetting leverage.
  *2x leveraged exposure to the price performance and dividends of an index
    that is the leading benchmark for large cap US equities.

“The S&P 500 Total Return Index is widely regarded as the best gauge of large
cap US equities and a bellwether for the US economy,” said Paul Somma, Senior
ETRACS Structurer. “SPLX allows investors to get 2x leveraged exposure to this
benchmark index by way of a product whose leverage resets monthly and not
daily.”

About the S&P 500^® Total Return Index

The S&P 500^® Total Return Index (the “Index”) is a capitalization-weighted
index composed of 500 US common stocks (the "Index constituents"). The S&P
500^® Total Return Index differs from the S&P 500^® Price Return Index in that
as a "total return index", the index level of the S&P 500^® Total Return Index
reflects both the price performance of the Index constituents and the
reinvestment of dividends on the Index constituents (i.e., any dividends on
the Index constituents, be they ordinary or “special” dividends, are
reinvested in the Index and reflected in the Index level). By contrast, the
index level of the S&P 500^® Price Return Index reflects only the price
performance of the Index constituents (i.e., dividends on the Index
constituents are not reinvested in the Index and therefore not reflected in
the index level).

The S&P US Index Committee selects the 500 stocks comprising the Index on the
basis of market values and industry diversification and divides these 500
stocks into ten Industry Sector Groups. The Index constituents do not
represent the common stocks of the 500 largest companies in the US. Rather,
the Index constituents are chosen for inclusion in the Index with the goal of
ensuring that the Index is a leading benchmark for large cap US equities,
reflecting the risk and return characteristics of the broader large cap
universe on an ongoing basis. As of December 31, 2013, the Index constituents
had an average market capitalization of more than $34.99 billion and a median
market capitalization of $16.52 billion. The Index was launched on March 4,
1957 and, therefore, has no performance history prior to that date.

Index Industry Sector Group Weightings 
                                         
Sectors                                  % Weight
Information Technology                   18.8
Financials                               16.2
Health Care                              13.7
Consumer Discretionary                   12.5
Industrials                              10.7
Energy                                   9.9
Consumer Staples                         9.5
Materials                                3.6
Utilities                                2.9
Telecommunication Services               2.3

Source: S&P Dow Jones Indices, as of March 5, 2014.

About ETRACS

For further information about ETRACS ETNs, go to www.etracs.com or download
the ETRACS Full ETN List.

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 may 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 involves 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 applicable Prospectus Supplement, or product supplement
and pricing supplement for the ETRACS ETNs in which you are interested.

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.
UBS has filed a registration statement (including a prospectus, as
supplemented by a product supplement and pricing supplement for the offering
of the ETRACS ETNs) with the Securities and Exchange Commission (the "SEC")
for the offering 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.

The S&P 500® Total Return Index is a product of S&P Dow Jones Indices LLC or
its affiliates ("SPDJI"), and has been licensed for use by UBS AG. Standard &
Poor's® and S&P® are registered trademarks of Standard & Poor's Financial
Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones
Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed
for use by SPDJI and sublicensed for certain purposes by UBS AG. ETRACS
Monthly Reset 2xLeveraged S&P 500® Total Return ETN is not sponsored,
endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective
affiliates, and none of such parties make any representation regarding the
advisability of investing in such product(s) nor do they have any liability
for any errors, omissions, or interruptions of the S&P 500® Total Return
Index.

The S&P 500® Total Return Index is a product of S&P Dow Jones Indices LLC or
its affiliates ("SPDJI"), and has been licensed for use by UBS AG. Standard &
Poor's® and S&P® are registered trademarks of Standard & Poor's Financial
Services LLC ("S&P") and Dow Jones® is a registered trademark of Dow Jones
Trademark Holdings LLC ("Dow Jones"). The trademarks have been licensed to
SPDJI and have been sublicensed for use for certain purposes by UBS AG. ETRACS
Monthly Reset 2xLeveraged S&P 500® Total Return ETN is not sponsored,
endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective
affiliates (collectively, "S&P Dow Jones Indices"). S&P Dow Jones Indices does
not make any representation or warranty, express or implied, to the owners of
the ETRACS Monthly Reset 2xLeveraged S&P 500® Total Return ETN or any member
of the public regarding the advisability of investing in securities generally
or in ETRACS Monthly Reset 2xLeveraged S&P 500® Total Return ETN particularly
or the ability of the S&P 500® Total Return Index to track general market
performance. S&P Dow Jones Indices only relationship to UBS AG with respect to
the S&P 500® Total Return Index is the licensing of the Index and certain
trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or
its licensors. The S&P 500® Total Return Index is determined, composed and
calculated by S&P Dow Jones Indices without regard to UBS AG or the ETRACS
Monthly Reset 2xLeveraged S&P 500® Total Return ETN. S&P Dow Jones Indices
have no obligation to take the needs of UBS AG or the owners of ETRACS Monthly
Reset 2xLeveraged S&P 500® Total Return ETN into consideration in determining,
composing or calculating the S&P 500® Total Return Index. S&P Dow Jones
Indices are not responsible for and have not participated in the determination
of the prices, and amount of ETRACS Monthly Reset 2xLeveraged S&P 500® Total
Return ETN or the timing of the issuance or sale of ETRACS Monthly Reset
2xLeveraged S&P 500® Total Return ETN or in the determination or calculation
of the equation by which ETRACS Monthly Reset 2xLeveraged S&P 500® Total
Return ETN is to be converted into cash, surrendered or redeemed, as the case
may be. S&P Dow Jones Indices have no obligation or liability in connection
with the administration, marketing or trading of ETRACS Monthly Reset
2xLeveraged S&P 500® Total Return ETN. There is no assurance that investment
products based on the S&P 500® Total Return Index will accurately track index
performance or provide positive investment returns. S&P Dow Jones Indices LLC
is not an investment advisor. Inclusion of a security within an index is not a
recommendation by S&P Dow Jones Indices to buy, sell, or hold such security,
nor is it considered to be investment advice.

S&P DOW JONES INDICES DOES NOT GUARANTY THE ADEQUACY, ACCURACY, TIMELINESS
AND/OR THE COMPLETENESS OF THE S&P 500® TOTAL RETURN INDEX OR ANY DATA RELATED
THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN
COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P
DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY
ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS
OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANT
ABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE
OBTAINED BY UBS AG, OWNERS OF THE ETRACS MONTHLY RESET 2xLEVERAGED S&P 500®
TOTAL RETURN ETN, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500®
TOTAL RETURN INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT
LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES
INDICES 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. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR
ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND UBS AG, OTHER THAN THE
LICENSORS OF S&P DOW JONES INDICES.

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 2014. The key symbol, UBS and ETRACS are among the registered
and unregistered trademarks of UBS. Other marks may be trademarks of their
respective owners. All rights reserved.

Notes to Editors

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 leading 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 60,000 people around the
world. Its shares are listed on the SIX Swiss Exchange and the New York Stock
Exchange (NYSE).

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Contact:

UBS
Judi Flynn-Echeverria, 917-902-9726
or
New York:
Megan Stinson, 212-713-1302
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