UBS Launches ETN With High Monthly Income Potential And Leveraged Exposure To International Real Estate Securities

UBS Investment Bank announced that today is the first day of trading on the NYSE Arca for the ETRACS Monthly Pay 2xLeveraged Dow Jones International Real Estate ETN (Ticker: RWXL). RWXL is linked to the monthly compounded 2x leveraged performance of the Dow Jones Global ex-U.S. Select Real Estate Securities Index (the “Index”), reduced by investor fees.

RWXL offers investors:

• Monthly compounded 2x leveraged exposure to the Index, less fees, making it the only exchange-traded product with leveraged exposure to this index.
• Significant income potential in the form of a variable monthly coupon linked to 2 times the cash distributions, if any, on the Index constituents, less any withholding taxes.
• Global diversification resulting from 127 international real estate securities based in 22 countries.*
• Convenience of a single, USD-denominated, exchange-traded security and USD-denominated income.

* Constituent and country data as of February 29, 2012 and sourced from CME Group Index Services LLC.

“This ETN is designed for investors who seek a high yield and are bullish on this Dow Jones international real estate index,” said Christopher Yeagley, Managing Director and US Head of Equity Structured Products. “RWXL offers high monthly income potential, international diversification and leveraged exposure to the index, all by way of a single, USD-denominated, exchange-traded security.”

RWXL Profile
Income Potential		Variable monthly coupon linked to 2 times the cash distributions, if any, on the Index constituents, less any withholding taxes
2x Index Yield*		7.60%
Underlying Index		Dow Jones Global ex-U.S. Select Real Estate Securities Index
Leverage		2x Leverage with Monthly Reset
Diversification		Index comprised of 127 international real estate securities based in 22 countries**

*		Based on 2 times the Index dividend yield calculated in USD as of February 29, 2012 by CME Group Index Services LLC. Investors are not guaranteed any coupon or distribution.
**		Constituent and country data as of February 29, 2012 and sourced from CME Group Index Services LLC.

Top 10 Index Constituents*
									Index
Name			Country			Bloomberg Ticker			Weighting
Westfield Group			Australia			WDC AU EQUITY <GO>			6.46%
Unibail-Rodamco S.A.			France			UL FP EQUITY <GO>			5.67%
Brookfield Asset Mgmt Inc. Cl A			Canada			BAM/A CN EQUITY <GO>			5.62%
Mitsui Fudosan Co. Ltd.			Japan			8801 JP EQUITY <GO>			5.37%
Land Securities Group PLC			U.K.			LAND LN EQUITY <GO>			2.70%
Hang Lung Properties Ltd.			Hong Kong			101 HK EQUITY <GO>			2.70%
Link Real Estate Investment Trust			Hong Kong			823 HK EQUITY <GO>			2.68%
Westfield Retail Trust			Australia			WRT AU EQUITY <GO>			2.50%
Hongkong Land Holdings Ltd.			Singapore			HKL SP EQUITY <GO>			2.19%
British Land Co. PLC			U.K.			BLND LN EQUITY <GO>			2.13%
TOTAL									38.02%
Source: CME Group Index Services LLC.
* Data calculated in USD as of February 29, 2012.

Index Country Allocations*
Australia			17.86%
Japan			17.22%
U.K.			11.54%
Hong Kong			10.35%
Canada			10.18%
Singapore			9.79%
France			8.21%
Switzerland			2.34%
Brazil			2.06%
Austria			1.75%
Philippines			1.67%
Netherlands			1.58%
Sweden			1.47%
South Africa			0.97%
Belgium			0.84%
New Zealand			0.77%
Malaysia			0.52%
Thailand			0.28%
Poland			0.25%
Italy			0.15%
Germany			0.13%
Turkey			0.08%
Source: CME Group Index Services LLC.
* Data calculated in USD as of February 29, 2012.

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, 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. 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 prospectus supplement for the ETRACS ETN.

There are 41 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				BDCL
Company Index
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 Off ETN				OFF
Fisher-Gartman Risk On ETN				ONN
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
*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 AG 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 AG has filed with the SEC for more complete information about UBS AG 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).

© 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.

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