Model Portfolio Series: Equity Income

Following is the equity income model portfolio's quarterly updated information. During the next 2 months, we'll update the aggressive growth and conservative growth portfolios. During the past quarter, Nextel Communications, Pitney Bowes, Raytheon, and XL Capital were replaced with Annaly Mortgage Management Corp, Comp de Saneamento, DuPont (EI) de Nemours, and Weatherford International in the portfolio. As of November 15, 2003, the portfolio consisted of 16 stocks selected based on the following analyst ratings: B=buy; N=neutral; R=reduce; NR=not rated; and the following predictability levels: 1=higher; 2=lower. These ratings translate into the following stock movements: B1/B2=buy; N1/N2=hold; R1/R2=sell. Since the data may have changed, contact 800-316-7015 or paul.namm@ubs.com for updates.

Since this portfolio is hypothetical, it does not contain any investor assets. The decisions were not made under the same conditions as those for an actual account. There can be no assurance that the author would have made the same decisions or achieved the same level of performance if managing an actual account. The hypothetical performance of this model may be of limited value in evaluating the author's past or future performance. The author manages other hypothetical accounts, as well as actual taxable and tax-exempt accounts, and recommends the purchase or sale of securities for individuals and institutions. The performance of his actual accounts may be materially better or worse than that of the model portfolio.

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