1. The 1% Solution Retirement Savings Strategy

2. 1 It is important that you understand the ways in which we conduct business and the applicable laws and regulations that govern us. As a firm providing wealth management services to clients in the U.S., we are registered with the U.S. Securities and Exchange Commission (SEC) as an investment adviser and a broker-dealer, offering both investment advisory and brokerage services. Though there are similarities among these services, the investment advisory programs and brokerage accounts we offer are separate and distinct, differ in material ways and are governed by different laws and separate contracts. It is important that you carefully read the agreements and disclosures that we provide to you about the products or services we offer. While we strive to ensure the nature of our services is clear in the materials we publish, if at any time you seek clarification on the nature of your accounts or the services you receive, please speak with your Financial Advisor. For more information, please visit our website at www.ubs.com/workingwithus

3. 2 Are you saving as much as you can for retirement? How to boost your retirement savings with the“1% Solution”

4. 3 Saving for retirement has never been more critical.  People are living longer and spending more time in retirement  You’ll need approximately 75% of your pre-retirement income  Social Security may only cover a small part of your living expenses  Traditional pension plans are being replaced by employee-funded plans

5. 4 Maximize the power of your retirement plan. Contribute as much as possible – starting as soon as possible.

6. 5 Three effective ways to save more.  Increase your contributions  Change your spending habits  Re-evaluate your investment objectives

7. 6 Build your savings with the “1% Solution.” Small yearly increases in your plan contributions can make a big difference in the long run.  Start with the contribution amount most comfortable to you  Increase by 1% each year  Increases end when you hit the maximum allowable contribution

8. 7 Maximize your savings today. Minimize your retirement worries tomorrow. Look at the impact of increasing contributions over the long term. How the “1% Solution” pays off Assumes $25,000 salary; 8% rate of return; investment time frame of 30 years. Note: Sue’s contributions remain at 15% after year 10 and until year 30. This illustration is hypothetical and not intended to represent the performance of any specific investment. Distributions from tax-deferred retirement accounts are subject to income taxes and a possible 10% early distribution penalty. JohnSue $186,294 $369,014 Contributes 6% annually Contributes 6% the first year; increases it by 1% annually for 10 years when she reaches the plan’s maximum allowable rate of 15%

9. 8 Is it time to re-evaluate your investment objectives? Certain lifestyle changes may call for changes in your investment objectives...  Will you be getting married or divorced?  Are you expecting a baby?  If you have children, did your last child finish college?  Have you recently changed jobs or received a promotion?  Are you planning to retire in the near future?

10. 9 Change your spending habits. No savings is too small — no belt tightening too insignificant…  Pay off credit card debt — start with the card that has the highest rate  Make dinner at home instead of eating out  Bring your lunch to work  Wait for a movie to come out on video instead of paying theater ticket prices  Borrow books from the library instead of buying them  Reduce your visits to the ATM machine to minimize service charges

11. 10 Other savings opportunities to increase your contributions.  You’ve paid off a loan or mortgage  You’re refinancing your home at a lower rate  With the children gone, you’re moving to a smaller home  Your simplified lifestyle may mean lower insurance rates When you come across any extra savings, think “retirement.”

12. 11 Plan for tomorrow. Begin saving today. Start gradually – with the “1% Solution” The more you save now, the better your chances of a comfortable retirement in the future.

13. 12 Contact Information and Legal Entity UBS Financial Services Inc. www.ubs.com/financialservicesinc 040506-0756 © 2008 UBS Financial Services Inc. All Rights Reserved. Member SIPC. UBS Financial Services Inc. is a subsidiary of UBS AG.