UBS AG : UBS Launches ETRACS Exchange Traded Note Providing Exposure Across Commodities and Across Their Respective Futures Maturities

ETRACS DJ-UBS Commodity Index 2-4-6 Blended Futures (Ticker: BLND) Is the First ETN Linked to the Second Generation of the Most Widely Followed Commodities Index

UBS Investment Bank today announced the launch of the ETRACS DJ-UBS Commodity Index 2-4-6 Blended Futures ETN (Ticker: BLND), the first exchange-traded note linked to the next generation of the DJ-UBS Commodity Index, one of the most widely followed, diversified indexes of commodities futures prices.

BLND is linked to the Dow-Jones-UBS Commodity Index 2-4-6 Forward Blend Total Return^SM (Ticker: DJUF246T), an enhanced version of the Dow-Jones-UBS Commodity Index. The Index is constructed as an equally-weighted basket of the two-month, four-month and six-month forward versions of the Dow Jones-UBS Commodity Index, providing diversification across the commodity price curve of each of the 20 commodities that currently comprise the index.

By diversifying exposure across multiple commodity futures maturities, the Index seeks to limit concentration at any one point on the respective commodity futures price curve. Historically, including exposure to longer-dated maturities has helped to mitigate the costs associated with holding and rolling shorter-dated commodity futures positions, commonly referred to as "negative roll yield."

"Negative roll yield adversely impacts returns on exchange-traded products based on commodity futures positions," said Christopher Yeagley, Managing Director and US Head of Equity Structured Products. "The ETRACS DJ-UBS Commodity Index 2-4-6 Blended Futures ETN - the first ETN based on the second generation of the benchmark Dow Jones-UBS Commodity index - gives investors the opportunity to minimize roll risk through its diversified exposure to the Index's longer dated futures positions."

The ETRACS DJ-UBS Commodity Index 2-4-6 Blended Futures ETN begins trading today on the NYSE Arca. BLND offers investors:

• Exposure to the same commodities as the Dow Jones-UBS Commodity Index
• Diversification of exposure across multiple commodity futures maturities to limit futures contract concentration at any one maturity
• Potentially reduced roll risk in the component futures contracts by investing further out on the futures curve
• Convenience of an exchange-traded security

About the Index

The DJ-UBS Commodity Index 2-4-6 Forward Blend Total Return^SM is composed of the prices of twenty exchange-traded futures contracts on physical commodities. For 2012, the commodities included in the DJ-UBS Commodity Index are as follows: aluminum, Brent crude, coffee, copper, corn, cotton, WTI Crude Oil, gold, heating oil, lean hogs, live cattle, natural gas, nickel, silver, soybeans, soybean oil, sugar, unleaded gas (RBOB), wheat and zinc.

About ETRACS

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

Exchange Traded Access Securities ETNs ("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 ("UBS"), 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. We urge you to read the more detailed explanation of risks described under "Risk Factors" in the prospectus supplement for the ETRACS ETN.

Note that not all commodity futures markets are subject to negative roll yields at all times. The terms structure of such markets can change over time. Commodities futures markets may trade in contango, backwardation or both, resulting in negative roll yields, positive roll yields or no roll yields at all.

There are 42 ETRACS ETNs:

ETRACS ETN Name				Ticker
Master Limited Partnerships
Alerian MLP Infrastructure				MLPI
2x Monthly Leveraged Long Alerian MLP Infrastructure				MLPL
1x Monthly Short Alerian MLP Infrastructure TR*				MLPS
Alerian Natural Gas MLP				MLPG
Wells Fargo MLP Index				MLPW
Business Development Companies
Wells Fargo Business Development Company Index				BDCS
2x Monthly Leveraged Wells Fargo Business Development Company Index				BDCL
Alpha Strategies
Long-Short S&P 500 VIX Futures				XVIX
Natural Gas Futures Contango ETN				GASZ
Oil Futures Contango ETN				OILZ
Hybrid
S&P 500 Gold Hedged				SPGH
Fisher-Gartman Risk On ETN				ONN
Fisher-Gartman Risk Off ETN				OFF
Commodities
CMCI TR				UCI
CMCI Agriculture TR				UAG
CMCI Energy TR				UBN
CMCI Food TR				FUD
CMCI Gold TR				UBG
CMCI Industrial Metals TR				UBM
CMCI Livestock TR				UBC
CMCI Long Platinum ER*				PTM
CMCI Short Platinum ER				PTD
CMCI Silver TR				USV
DJ-UBS Commodity Index TR				DJCI
Equities
Next Generation Internet ETN				EIPO
Monthly 2xLeveraged Next Generation Internet ETN				EIPL
Long ISE Solid State Drive Index				SSDD
2xLeveraged Long ISE Solid State Drive Index				SSDL
Monthly 2xLeveraged ISE Cloud Computing TR				LSKY
Volatility
Long-Short S&P 500 VIX Futures				XVIX
Long 1-Month S&P 500 VIX Futures				VXAA
Long 2-Month S&P 500 VIX Futures				VXBB
Long 3-Month S&P 500 VIX Futures				VXCC
Long 4-Month S&P 500 VIX Futures				VXDD
Long 5-Month S&P 500 VIX Futures				VXEE
Long 6-Month S&P 500 VIX Futures				VXFF
Short 1-Month S&P 500 VIX Futures				AAVX
Short 2-Month S&P 500 VIX Futures				BBVX
Short 3-Month S&P 500 VIX Futures				CCVX
Short 4-Month S&P 500 VIX Futures				DDVX
Short 5-Month S&P 500 VIX Futures				EEVX
Short 6-Month S&P 500 VIX Futures				FFVX
Income
Monthly Pay 2xLeveraged Dow Jones International Real Estate ETN				RWXL
Wells Fargo Business Development Company Index				BDCS
2xLeveraged Long Wells Fargo Business Development Company Index				BDCL
Alerian MLP Infrastructure Index				MLPI
2xMonthly Leveraged Long Alerian MLP Infrastructure Index				MLPL
Alerian Natural Gas MLP Index				MLPG
Wells Fargo MLP Index				MLPW

*TR=Total Return and ER=Excess Return

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 prospectus supplement for the offerings 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 prospectus supplement by calling toll-free (+1.877.387.2275). Futures and futures options trading is speculative, involves a high degree of risk and is not suitable for all investors. Past performance is not necessarily indicative of future results.

© UBS 2012. The key symbol, UBS and ETRACS are among the registered and unregistered trademarks of UBS. "UBS Bloomberg Constant Maturity Commodity Index" and "CMCI" are service marks of UBS and/or Bloomberg. "Dow Jones," "DJ-UBS Commodity Index" and "DJ-UBSCI" are service marks of Dow Jones & Company Inc. and UBS AG, as the case may be. "Standard & Poor's®," "S&P®," "S&P 500®," "Standard & Poor's 500™," "S&P 500 Gold Hedged," "S&P 500 VIX Short-Term Futures Index," "S&P 500 VIX 2-Month Futures Index," "S&P 500 VIX 3-Month Futures Index," "S&P 500 VIX 4-Month Futures Index," "S&P 500 VIX Mid-Term Futures Index," and "S&P 500 VIX 6-Month Futures Index" are trademarks of Standard & Poor's Financial Services LLC ("S&P") and have been licensed for use by UBS. "VIX" is a registered trademark of the Chicago Board Options Exchange, Incorporated ("CBOE") and has been licensed to S&P. The ETRACS ETNs are not sponsored, endorsed, sold or promoted by S&P or CBOE and neither S&P nor CBOE makes any representation regarding the advisability of investing in the ETNs. "ISE Cloud Computing™ Total Return Index", "ISE Solid State Drive™ Index", "ISE Oil Futures Spread™", "ISE Natural Gas Futures Spread™", "ISE™®", and "International Securities Exchange®" are trademarks of International Securities Exchange, LLC ("ISE" or "Licensor") and have been licensed for use for certain purposes by UBS Securities LLC and its affiliates. UBS AG's ETRACS Monthly 2xLeveraged ISE Cloud Computing TR Index ETN, ETRACS ISE Solid State Drive Index ETN, ETRACS Monthly 2xLeveraged ISE Solid State Drive Index ETN, ETRACS Natural Gas Futures Contango ETN and ETRACS Oil Futures Contango ETN based on the ISE Cloud Computing™ Total Return Index, ISE Solid State Drive™ Index, ISE Natural Gas Futures Spread™ Index and the ISE Oil Futures Spread™ Index, respectively, are not sponsored, endorsed, sold or promoted by ISE, and ISE makes no representation regarding the advisability of trading in such product(s). Alerian MLP Infrastructure Index, Alerian Natural Gas MLP Index, Alerian MLP Infrastructure Total Return Index, Alerian Natural Gas MLP Total Return Index, AMZI, AMZIX and ANGI are trademarks of GKD Index Partners, LLC d/b/a Alerian and their use is granted under a license from GKD Index Partners. Wells Fargo Securities, Wells Fargo Securities, LLC, Wells Fargo, and Wells Fargo® Master Limited Partnership Index are trademarks of Wells Fargo & Company and have been licensed for use by UBS AG. ETRACS Wells Fargo MLP Index is not issued, guaranteed, sponsored, endorsed, sold or promoted by Wells Fargo & Company, Wells Fargo Securities, LLC or their subsidiaries and affiliates (collectively, "Wells Fargo"). Wells Fargo makes no representation or warranty, express or implied, to investors in the ETRACS ETNs or any member of the public regarding the advisability of investing in securities generally or in this ETRACS Wells Fargo MLP Index particularly or the ability of any data supplied by Wells Fargo or any Index to track financial instruments comprising the Index or any trading market. Wells Fargo & Company does not guarantee that the Index referenced by the ETRACS ETNs has been accurately calculated and shall not have any liability for any error in the calculation. Wells Fargo's only relationship to UBS AG is the licensing of certain intellectual property rights relating to the Index as well as trademarks and trade names of Wells Fargo and of the data supplied by Wells Fargo that is determined, composed, compiled and calculated by Wells Fargo or a third party index calculator, without regard to this ETRACS Wells Fargo MLP Index. Wells Fargo has no obligation to take into consideration the ETRACS Wells Fargo MLP Index or investors in the ETRACS ETNs when determining, composing, compiling or calculating the data. Wells Fargo has no obligation or liability in connection with the listing, registration, distribution, administration, marketing, trading or redemption or settlement by the issuer or otherwise of this ETRACS Wells Fargo MLP Index. Wells Fargo does not guarantee the accuracy and/or the completeness of the index or of any data supplied by it or any data included therein. Wells Fargo makes no warranty, express or implied, as to results to be obtained by UBS AG and the ETRACS Wells Fargo MLP Index, or any other person or entity from the use of index or of the data supplied by Wells Fargo or any data included therein. Wells Fargo 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 index and the data supplied by Wells Fargo or any data included therein. Without limiting any of the foregoing, in no event shall Wells Fargo have any liability for any special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages. "MBF Index Holdings, LLC", "The Fisher- Gartman Risk Index", "The Fisher-Gartman Equity Subindex" and "The Fisher-Gartman Sovereign Bond Subindex" are trademarks of MBF Index Holdings, LLC and have been licensed for use by UBS AG. The ETRACS Fisher-Gartman Risk On ETN and ETRACS Fisher-Gartman Risk Off ETN are not issued by, sponsored, endorsed, sold or promoted by MBF Index Holdings, LLC or its affiliates and MBF Index Holdings, LLC makes no representation regarding the advisability of investing in the product. MBF Index Holdings, LLC does not guarantee that the Index referenced by the product has been accurately calculated and shall not have any liability for any error in the calculation.

The "Dow Jones Global ex-U.S. Select Real Estate Securities Index^SM" is a product of Dow Jones Indexes, the marketing name and a licensed trademark of CME Group Index Services LLC ("CME"), and has been licensed for use. "Dow Jones®", "Dow Jones Global ex-U.S. Select Real Estate Securities Index^SM" and "Dow Jones Indexes" are service marks of Dow Jones Trademark Holdings, LLC ("Dow Jones") have been licensed to CME and have been sublicensed for use for certain purposes by UBS AG. The ETRACS Monthly Pay 2xLeveraged Dow Jones International Real Estate ETN is not 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 ETRACS Monthly Pay 2xLeveraged Dow Jones International Real Estate ETN or any member of the public regarding the advisability of trading in the Product(s). Dow Jones', CME's and their respective affiliates' only relationship to the Licensee is the licensing of certain trademarks and trade names of Dow Jones and of the Dow Jones Global ex-U.S. Select Real Estate Securities Index which is determined, composed and calculated by CME without regard to UBS AG or the ETRACS Monthly Pay 2xLeveraged Dow Jones International Real Estate ETN. Dow Jones and CME have no obligation to take the needs of UBS AG or the owners of the ETRACS Monthly Pay 2xLeveraged Dow Jones International Real Estate ETN into consideration in determining, composing or calculating "Dow Jones Global ex-U.S. Select Real Estate Securities Index^SM". 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 ETRACS Monthly Pay 2xLeveraged Dow Jones International Real Estate ETN to be sold or in the determination or calculation of the equation by which the ETRACS Monthly Pay 2xLeveraged Dow Jones International Real Estate ETN 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 ETRACS Monthly Pay 2xLeveraged Dow Jones International Real Estate ETN. Notwithstanding the foregoing, CME Group Inc. and its affiliates may independently issue and/or sponsor financial products unrelated to the ETRACS Monthly Pay 2xLeveraged Dow Jones International Real Estate ETN currently being issued by UBS AG, but which may be similar to and competitive with the ETRACS Monthly Pay 2xLeveraged Dow Jones International Real Estate ETN. 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. It is possible that this trading activity will affect the value of the Dow Jones Global ex-U.S. Select Real Estate Securities Index SM and ETRACS Monthly Pay 2xLeveraged Dow Jones International Real Estate ETN.

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 INDEX 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 AG, OWNERS OF THE ETRACS MONTHLY PAY 2XLEVERAGED DOW JONES INTERNATIONAL REAL ESTATE ETN, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE DOW JONES GLOBAL EX-U.S. SELECT REAL ESTATE SECURITIES INDEX 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 INDEX 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 AG, OTHER THAN THE LICENSORS OF CME.

Other marks may be trademarks of their respective owners. All rights reserved. UBS assumes sole responsibility for this marketing material, which has not been reviewed by Bloomberg.

Notes to Editors

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