UBS is to implement a one-for-four reverse split of its ETRACS Monthly 2xLeveraged Next Generation Internet ETN due 19 July 2041, effective 12 September 2012.

The note trades on the NYSE Arca under the ticker symbol EIPL.

Pursuant to the terms of the note, UBS has the right to initiate such a reverse split if the current principal amount of the note falls below USD10.00 on any trading day. As of 27 August the current principal amount of the note was USD5.9583.

The record date for the reverse split will be 5pm New York time on 11 September 2012. The current principal amount of the note on the record date will be multiplied by four to reflect the one-for-four reverse split of the note. The reverse split will be effective at the open of trading on 12 September and the note will begin trading on the NYSE Arca on a reverse-split adjusted basis on such date. The reverse-split adjusted notes will have a new CUSIP, but will retain the same ticker symbol.

Investors who, as of the record date, hold a number of notes that is not divisible by four will receive one reverse-split adjusted note for every four notes held on the record date and a cash payment for any odd number of notes remaining (the “partials”). The cash amount due on any partials will be determined on 18 September, based on the closing indicative value of the reverse-split adjusted notes on such date and will be paid by UBS on 21 September.