UBS Launches the ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN Series B

NEW YORK–(BUSINESS WIRE)–UBS Investment Bank today announced that the ETRACS
Monthly Pay 2x Leveraged Small Cap High Dividend ETN Series B
(NYSE
Arca®: SMHB),
will begin trading on NYSE Arca®. SMHB is linked to the
monthly compounded 2x leveraged performance of the Solactive US Small
Cap High Dividend Index.

About the Solactive US Small Cap High Dividend Index

The Index is calculated and distributed by Solactive AG and is intended
to track the price movements of stocks which are publicly traded on US
stock exchanges and fulfill certain minimum requirements in terms of
liquidity and market capitalization. The Index was launched on
January 26, 2015 and, therefore, has no performance history prior to
that date.

For more information about the ETN, including the SMHB
Prospectus Supplement
, please visit www.etracs.com.

About ETRACS

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. Investors
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 for the ETRACS
ETN.

UBS AG has filed a registration statement (including a prospectus and
supplements thereto) with the Securities and Exchange Commission, or
SEC, for the offerings of securities to which this communication
relates. Before you invest, you should read the prospectus, along with
the applicable prospectus, pricing, or product supplement to understand
fully the terms of the securities and other considerations that are
important in making a decision about investing in the ETRACS. The
applicable offering document for the ETRACS ETN may be obtained by
clicking here.
You may also get these documents without cost by visiting EDGAR on the
SEC website at www.sec.gov.
Alternatively, you can request the applicable prospectus supplement, or
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.

The securities related to the offerings are not deposit liabilities and
are not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other governmental agency of the United States,
Switzerland or any other jurisdiction.

About UBS

UBS provides financial advice and solutions to wealthy, institutional
and corporate clients worldwide, as well as private clients in
Switzerland. UBS’s strategy is centered on our leading global wealth
management business and our premier universal bank in Switzerland,
enhanced by Asset Management and the Investment Bank. The bank focuses
on businesses that have a strong competitive position in their targeted
markets, are capital efficient, and have an attractive long-term
structural growth or profitability outlook.

UBS is present in all major financial centers worldwide. It has offices
in 52 countries, with about 34% of its employees working in the
Americas, 34% in Switzerland, 18% in the rest of Europe, the Middle East
and Africa and 14% in Asia Pacific. UBS Group AG employs approximately
61,000 people around the world. Its shares are listed on the SIX Swiss
Exchange and the New York Stock Exchange (NYSE).

This material is issued by UBS AG and/or any of its subsidiaries and/or
any of its affiliates (“UBS”). Products and services mentioned in this
material 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 the applicable prospectus supplement, or
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.

The financial instrument is not sponsored, promoted, sold or supported
in any other manner by Solactive AG nor does Solactive 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. The Index is calculated and published
by Solactive AG. Solactive AG uses its best efforts to ensure that the
Index is calculated correctly. Irrespective of its obligations towards
the Issuer, Solactive 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. Neither
publication of the Index by Solactive AG nor the licensing of the Index
or Index trade mark for the purpose of use in connection with the
financial instrument constitutes a recommendation by Solactive AG to
invest capital in said financial instrument nor does it in any way
represent an assurance or opinion of Solactive AG with regard to any
investment in this financial instrument.

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 2018. 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.

Contacts

UBS
Media:
Erica Chase, +1-212-713-1302
erica.chase@ubs.com
or
Investors:
+1-877-387
2275

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