Model Portfolio Series: Conservative Growth

Following is the conservative growth model portfolio'squarterly updated information. During thenext 2 months, we'll update the equity income andaggressive growth portfolios. During the past quarter,Annaly Mortgage Management, Bank of America,Pfizer, and Wyeth were replaced with Best Buy,General Electric, ING Group, and Viacom in the portfolio.As of April 15, 2004, the portfolio consisted of 15stocks selected based on the following analyst ratings:B=buy; N=neutral; R=reduce; NR=not rated; and thefollowing predictability levels: 1=higher; 2=lower.These ratings translate into the following stock movements:B1/B2=buy; N1/N2=hold; R1/R2=sell. Since thedata may have changed, call 800-316-7015 or e-mailpaul.namm@ubs.com for updates.

Since this portfolio is hypothetical, it does not containany investor assets. The decisions were notmade under the same conditions as those for anactual account. There can be no assurance that theauthor would have made the same decisions orachieved the same level of performance if managingan actual account. The hypothetical performance ofthis model may be of limited value in evaluating theauthor's past or future performance. The authormanages other hypothetical accounts, as well asactual taxable and tax-exempt accounts, and recommendsthe purchase or sale of securities for individualsand institutions. The performance of his actualaccounts may be materially better or worse thanthat of the model portfolio.

Paul C. Namm is a vice president of investments and senior portfolio manager in theportfolio management program at UBS Financial Services Inc, an indirect subsidiaryof UBS AG. UBS Financial Services and/or their affiliates may make a market in anyof these securities. Their directors, officers, or employees may have interests in thesesecurities or may have managed or comanaged a public offering of these securitiesduring the past 3 years. To obtain that information or a complimentary report on anyof these companies, contact him at 800-316-7015 or paul.namm@ubs.com.