4tUBS UBS Investment Research UBS Business Jet Update Used Inventories Hold, Pricing Falls Further • Available inventories look to be stabilizing Available business jet inventories look to finally be stabilizing, albeit at record high levels both in absolute terms and at 18% of the installed base. While still 55% above prior year levels, available business jet inventories were roughly unchanged sequentially in May including a I% decline in young available aircraft listings (less than 10 years in age). New delivery position inventories have declined sequentially in each of the past two months. • Excess supply to pressure backlogs, force further production cuts We estimate average asking prices for most young aircraft models have now fallen 30-40% from peak levels, with pricing down another 3-4% in the past month. While our survey of industry professionals suggests some incremental interest at these levels, we think record high used available inventories will continue to overhang orders, pressure existing backlogs and force further production cuts. • Expect weak orders & backlog risk to pressure valuations Overall, we think the current business jet market is characterized by significant oversupply, weak pricing and tight financing. While our key indicators and contacts indicate a bottom is near, we think the potential for further production cuts along with the risk of an extended downturn limits upside for most of the stocks. We think TXT can trade higher on an improved liquidity profile post its recent capital raise and is our preferred bizjet play over GD. Chart 1: Total Available and Young (less than 10 years In age) Aircraft Listings I. 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% ESMESiMM$$'§') 03 003 0030 COM °CO COM °CO COM Oftl °CO N 2Z2Z2Z2Z2Z2Z2Z2Z2Z2Z2Z2Z2Z2 0-10 Years 10+ Years —% of Fleet Available for Sale 8 3 .0 ae ae Source: JETNET and UBS essmans Global Equity Research Americas Aerospace Sector Comment 10 June 2009 wew.ubs.cornfinvestrrentresearch David E. Strauss Ma st •7.212-7136181 Cristina Fernandez Ma)11 +1-212-713 3321 Darryl Genovesi Associate Analyst •1-212-713-4016 This report has been prepared by UBS Securities LLC ANALYST CERTIFICATION AND REQUIRED DISCLOSURES BEGIN ON PAGE 10. UBS does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Customers of UBS in the United States can receive independent, third-party research on the company or companies covered in this report, at no cost to them, where such research is available. Customers can access this independent research at wirw.ubs.00m/independentresearch or may call +1877-208.5700 to request a copy of this research. EFTA00775616

UBS BusinessJet Update 10 June 2009 Used Business Jet indicators We believe the used business jet market serves as a leading indicator of the new business jet market. We closely monitor several key indicators of activity in the secondary market, including: I) inventory of available for sale aircraft including new delivery positions listed for sale, 2) age distribution of available aircraft and 3) pricing of available for sale aircraft. We estimate 3,057 business jet aircraft available for sale at the end of May (including 2,878 used aircraft and 179 new delivery positions), roughly in line with the prior month, although still 55% higher from the prior year. While total inventory levels remain at all time record highs both in absolute terms and at 18% of the in-service fleet, we think the slower growth rate over the past few months indicates that inventories are beginning to stabilize. Chart 2: Sequential Change in Used Aircraft Listings 10% - 8% - 6% - 4% - 2% - 0% j tl ,1 1 Din, Tair a II I -2% - -4% - 9 • ti?- 0 0 ° • L • 1 Source: UBS estimates Young available aircraft inventories (less than 10 years in age), which had driven the recent inventory build, have also shown much lower sequential growth rates over the past few months and in May actually declined by 1%. Chart 3: Sequential Change in New and Almost New (0-5 Years) Aircraft Listings 30% 25% 209E 15% 10% 5% 0% -5% -10% 15% -20% 4 4 Ob a) 0 9 < 2 0 s Source: UBS estimates New delivery position inventories have declined sequentially in each of the past two months. UBS 2 EFTA00775617

UBS Business Jet Update 10 June 2009 We estimate average asking prices for most young aircraft models have now fallen 30-40% from peak levels, with pricing down another 34% in the past month. While our survey of industry professionals suggests some incremental interest at these levels, we think record high used available inventories will continue to overhang orders, pressure existing backlogs and force further production cuts. Overall, we think the current business jet market is characterized by significant oversupply, weak pricing and tight financing. While our key indicators and contacts indicate a bottom is near, we think the potential for further production cuts along with the risk of an extended downturn limits upside for most of the stocks. We think TXT can trade higher on an improved liquidity profile post its recent capital raise and is ow preferred bizjet play over GD. Chart 4: GD and TXT Forward PIE Multiples 30x 25x 20x a o. 15x o. I 10x Sx Ox t —TXT Note: Forward FE using rolling 12-mcnth (actual) EPS through May 2009 and UBS esbmales for future periods. TXT PE multiple for the current period Sects our 2010 imamate. Source: UBS eslimales UBS 3 EFTA00775618

UBS Business Jet Update 10 June 2009 Available Inventory Levels We estimate 3,057 business jet aircraft available for sale at the end of May (including 2,878 used aircraft and 179 new delivery positions), roughly in line with the prior month, although still 55% higher from the prior year. While total inventory levels remain at all time record highs both in absolute terms and at 18% of the in-service fleet, we think the slower growth rate over the past few months indicates that inventories are beginning to stabilize. Of the five major manufacturers, Bombardier had the highest percentage of its respective fleet available for sale at 19%, followed by Cessna at 18%, and Dassault, Gulfstream and Hawker Beechcraft all at 16%. Chart 5: Business Jets Available for Sale and as a Percentage of the Installed Base 3.600 18% 3.200 16% 2.800 I 14% it 2.400 12% i ZOCO 1,600 wit i I IIII! II II 59d tott 3 c s 120o I III a 800 400 0 E'bE•b&-bE•bE•bE•bE•bE•bE•b&-b&-bE•bE•bE- 72=2=2=2=2=2=2=2=2=2=2=2=2=2 Source: JETNET and UBS estimates Chart 6: Absolute YoY Growth In Available For Sale Aircraft Listings 75% 50% 259E Ott 25% 110 st44444 4444 444444 4444 kg ir a 8' 8 m 8 m 8 4' 8 Ir 8 Ir 8 8' E 8' E art 4' z2z:2 zre- zre- zre- zre- zre- zre- zre- zre- z2z2 Source: JETNET and UBS estimates By age class, we estimate the 0.5 and 6.10 year classes now have 11% (612) and 16% (543) of their respective fleets available for sale as compared to 5-10% a year ago. Meanwhile, business jets 20.30 years old now have roughly 30% of their fleets available for sale, above the recent average of 20%. Available inventory levels are stabilizing at record high levels UES 4 EFTA00775619

UBS Business Jet Update 10 June 2009 Chart 7: Available Inventory by Age Class and as % of Fleet in Age Class • of Available Inventry 800 TOO 600 500 400 300 200 100 0 26-30 30+ 0-5 6-10 11-15 16-20 21-25 Age Class(Yrs.) —% of Age Class Used Available Source: JETNET and UBS estimates Currently, 38% of jets available for sale are less than I0 years in age, well above the 20-25% average over the last several years. Chart 8: Available Inventory by Age Class (In years) 26-30 23% 6-10 18% 21-25 11-15 9% 12% 16-20 6% Source: JETNET and 1535 estrnales Chart 9: Young Aircraft Available for Sale (less than 10 years In age) 1200 1.000 800 3 600 400 200 0 s4.ns 4-s&-s4-s&-s&-s&-s A-b4't A-b4- 2=2=2=2=2=2=2=2=2=2=2=2=2=2 0-5 Years 6-10 Years —% of Total Available 40% 35% 30% 2 25% 2 20% T. 15% 0 10% et 5% Source: JETNET and UBS estimates We estimate the new/almost-new component of available aircraft inventories, including new delivery positions and used aircraft five years old or younger, declined by 3% in May to 612, roughly 2.5x prior-year levels. UBS 5 EFTA00775620

OBS Business Jet Update 10 June 2009 Of the 612 0.5 year old aircraft available for sale, 179 are new delivery positions, 3% lower from April at 184, but still 2.5x higher from a year ago (ex Eclipse). Chart 10: Historical New Aircraft Delivery Positions Listed for Sale 0 a j g 0 240 200 160 • 120 • 80 • 40- eeea l el 8,9 0 1 1 4 1:2 -4 8 4 -5) .R4AWA- V,1 ■ Total Ex Edina. ■ &apse 500 Source: JETNET and WS estimates We estimate young aircraft inventories (less than 10 years in age) declined by 1% in May, following steady increases over the past two years. Chart 11: Young Aircraft (less than 10 years) Inventories as a % of Installed Base 1,400 7% 1,200 6% 1.000 5% 800 4% 600 3% 400 2% 200 1 0 0 n 7;19 12I1111111rik' 0-10 Years — % of Installed Base % of Instated Base Source: JETNET and WS estimates Despite the sequential decline this month, young aircraft inventories are still roughly double prior year levels. Chart 12: Absolute YoY Growth In Young Aircraft (less than 10 years) Listed for Sale I 150% 100% 50% 0% -50% 26: ; ; ; ; ; ; 11111111311 Source: JETNET and DOS estimates Table 1: New Aircraft Delivery Positions Listed for Sale at May 31 and April 30 Model May-09 Apr-09 Damn Mustang 34 32 Phenom 100 28 27 Phenom 300 10 10 Challenger 300 10 9 Challenger 935 9 11 Citron CJ4 9 9 Citaton CJ3 8 10 Gultstream G-550 8 9 Citaton XIS. 7 10 Global Express 5000 6 7 Chalianger 850 6 5 &del Express MS 5 6 Gulfstrearn G-450 5 5 Citation Sovereign 3 5 Fakon 20001X 3 3 Fakon 900EX EASy 3 3 Learjet EOXR 3 3 Lineage1000 3 3 Airbus A318 Elea 3 1 Boeing BBJ 2 2 Airbus A319CJ 2 1 Lear* 45XR 1 2 Adam A700 1 1 Boeng BBJ2 1 1 Boeng BBJ3 1 1 Cilium X 1 1 Diamond D-JET 1 1 Fakon 2000EX EASy 1 1 Fakon 7x 1 1 Hanker 9COXP 1 1 Hondaiet HA-420 1 1 Sino Smaaringen 5J30-2 1 1 Premer a 1 - Damn CJ2. - 1 Gulfstrearn G-150 - Legacy 600 Total 179 184 Source: Jena! and U8S estimates U856 EFTA00775621

UBS Business Jet Update 10 June 2009 A Look at the Newer Models Of the 26 newer models that we track individually, 21 had at least 10% of their installed fleets available for sale at the end of May. Seven of these 26 models had higher inventory levels in May compared to the prior month, while eight were flat and II declined. All 26 models had higher levels of available inventory compared to the prior year. Table 2: Used Aircraft Listings and Average Asking Price for Newer Models ArcSI Model Manutecturer Used Avaibtie as Ch Model Used Available (units) Avemo? aP l) May-08 May-09 Apr-09am May-C8 Cl a lAsy-09 may-081 sc max5 Charge Max Dale Long Range Falcon 900E% Dassault 11% 26 26 0% 10 160% S 24.5 3 34.5 -29% 5 35 7 -32% 0c1418 Global Express' ecenbarder 10% 33 31 6% 15 120% 35.6 348.9 -27% 5 489 -27% Jun-08 Gufsream G-V 1G-500 &adman 7% 13 12 8% 6 1179E 30.6 3 45.0 -32% 5 450 -32% Jul-08 Gufsream GIV Gdfs0ean 20% 42 40 5% 26 14.3 3 19.1 -25% 5 20.1 -29% Jan-08 Gufsream G.IVSP/ 0-400 Gdfstrem 13% 40 40 0% 17 135% 18.4 3 26.0 -29% 5 315 -41% Aug48 Gufsream 0-560 Gdfstrem 7% 19 19 0% 4 375% S 41.0 3 56.0 -27% 5 599 -32% Jan.07 Large Challenger 601 embattle( 13% 48 48 0% 19 153% S 16.2 3 20.4 -20% 5 223 -27% Jan-08 Falcon 2000 Dassault 13% 30 27 11% 12 150% S 16.4 3 18.7 -12% 5 216 -24% Feb-08 Falcon 2000EX Dassault 6% 11 12 -8% 3 267% 525.6 333.8 -24% 5 355 -28% Mar-09 Legacy 600 Embraer 13% 20 20 0% 2 900% 19.3 3 20.0 -4% 5 245 -21% Dec-07 Medium Large Challenger 300 embattle( 8% 22 22 0% 7 214% 18.1 3 24.8 -27% 5 248 -27% Aug48 Odeon X Cessna 10% 29 31 -6% 19 53% 10.9 3 13.3 -18% 5 188 -42% Mar-06 Felten 50EX Dassault 20% 20 21 -5% 6 233% S 10.0 3 15.6 -36% 5 180 -45% Au346 Gulsrearn G-200 Calf Wean 15% 34 35 -3% 19 79% S 13.7 3 15.3 -10% 5 176 -22% Mar-08 Medium Gufsream G-1002 Cadman 19% 15 16 -6% 14 7% 5 5.9 3 7.0 -15% $ 11.0 -48% Mar-06 Hawker 800107 Meeker Peachtree 14% 65 65 0% 24 171% S 6.7 3 9.0 -25% $ 9.7 -31% Jan-08 Learjet 60 60XR embed er 23% 84 80 5% 39 115% S 5.9 3 7.6 -22% $ 7.7 -23% Jun-08 SePef Lint Chetah Excel/ XLS3 Cessna 11% 80 78 3% 37 116% S 6.0 3 8.5 -30% $ 9.5 -37% May-06 Learjet 45 45XR Bombard& 12% 47 50 -6% 24 96% S 5.4 3 72 -24% $ 7.8 -30% May-07 Light Seedie1400.44 Haeker Seechaaft 16% 56 58 -3% 41 37% S 2.1 3 32 -35% $ 3.5 -40% Jan.06 Citation CJ1 CJ1. Cessna 18% 53 56 -5% 14 56% S 3.2 3 3.B -17% $ 3.8 -17% May-08 Citation CJ2/ CJ2+ Cessna 15% 58 63 -8% 26 123% S 4.6 3 5.0 -9% $ 5.3 -14% Feb-08 Citatco Encore Cessna 11% 25 25 0% 16 56% S 5.9 3 7.1 -16% $ 7.4 -19% Sep-07 Learjet 40 140XR Banked& 10% 12 14 -14% 8 50% S 6.1 Na Na $ 8.6 -29% Jul-06 Prime& Hanker Beechcraft 13% 35 33 6% 26 35% S 3.7 3 4.5 -17% $ 4.7 -22% Jan.06 ChM, CJ3 Cessna 7% 23 26 -12% 11 109% S 7.1 3 7.4 -4% $ 8.0 -11% Jan-08 1. Global Express also includes Express 5000 and Express XRS 2. Gullskeam G-100 also ndudes Astra 1125SPX 3. Citation Excel also ndudes XLS / XIS«. 4. Eleadeet 400A does rot 'nude Hawker 400XR which had 15 aircraft available for sale this month 5. This column represents the maomum average pica athieved since 2035 for each aircraft model. Note: Analysis exclJdes new arcrall delivery positions. Source: JETNET and UBS estimates UM? EFTA00775622

UBS Business Jet Update 10 June 2009 Pricing Trends in the Secondary Market Rather than look at average pricing for the entire population of available aircraft, which can be distorted by monthly changes in its composition, we monitor four models that we believe capture pricing trends in their respective categories. Super Light We estimate the average asking price for a Citation Excel declined roughly 4% sequentially in May, and is now off 37% from its recent peak, while available for sale inventory increased by three aircraft. Chart 13: Citation Excel Rolling Three-Month Average Asking Price —0 40 130 10 0 —Available Inventory $10 $9 $6 ST $6 $5 3 R3M Average Asking Price (RHS) R3M Avg Asking Price (SM) Source: JelNel and UBS eslimales Medium We estimate the average asking price for a Hawker 800XP declined roughly 3% sequentially in May, and is now off 31% from its recent peak, while available for sale inventory levels were unchanged from the prior month's all-time high. Chart 14: Hawker 800, Rolling Three-Month Average Asking Price 80 $11.0 TO $10.5 g 1 w $19.0 $9.5 i $9.0 4 s 30 $8.5 .12 ‘g $1' a 20 $8.0 10 $7.5 0 $7.0 'II IA II 32 32 32 Avalatie Invenlay 32 IA IA Ft 32 32 32 32 3 —R314 Average Asking Price (RHS) Source: Jegilel and UBS eslimales UBS 8 EFTA00775623

UBS Business Jet Update 10 June 2009 Medium Large We estimate the average asking price for a Citation X declined roughly 4% sequentially in May, and is now off 42% from its recent peak, while available for sale inventory declined by two aircraft from the prior month's all-time high. Chart 15: Citation X Rolling Three-Month Average Asking Price 35 t 30 3 25120 E 15 I 10 5 0 4 4 la; 43 43 4 4 4 4 4 4 4 4 4 4 8 a2a2k 4 4' 4 4' 4 4 4' 4 4' 4 k •Available Inventory — RUA Average Asking Price (RHS) R3M Avg Asking Price (3M) Source: JetNet and UBS estimates Large We estimate the average asking price for a G-IVSP declined roughly 4% sequentially in May, and is now off 41% from its recent peak, while available for sale inventory levels were unchanged from the prior month's all-time high. Chart 16: Gulfstream G-IVSP Rolling Three-Month Average Asking Price 4 4 4 4 4$ 4 4 4 4 4 4 4$ nnnnnnn B 2z:2=:2=2=:2=:2=:2=:2z:2 $32 $30 $28 $26 $24 S22 S20 S18 —Available Inventory — R3MAverege Asking Price (RHS) R3M Avg Asking Price (SW Source: Jethet and UBS estimates UBS 9 EFTA00775624

UBS Business Jet Update 10 June 2009 ■ Statement of Risk The business jet market is cyclical in nature, largely driven by the general economic environment. Business jet manufacturers' earnings and cash flow are dependent on end-user demand, availability of customer financing, program execution and inventory management. ■ Analyst Certification Each research analyst primarily responsible for the content of this research report, in whole or in part, certifies that with respect to each security or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about those securities or issuers; and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by that research analyst in the research report. UBS 10 EFTA00775625

UBS Business Jet Update 10..kno2OD9 Required Disclosures This report has been prepared by UBS Securities LLC, an affiliate of UBS AG. UBS AG, its subsidiaries, branches and affiliates are referred to herein as UBS. For information on the ways in which UBS manages conflicts and maintains independence of its research product; historical performance information; and certain additional disclosures concerning UBS research recommendations, please visit Ivww.ubs.com/disclosures. The figures contained in performance charts refer to the past; past performance is not a reliable indicator of future results. Additional information will be made available upon request. UBS Investment Research: Global Equity Rating Allocations UBS 12-Month Rating Rating Category Coverage' IB Services Buy Neutral Sell Buy Hold/Neutral Sell 51% 37% 12% 36% 31% 22% UBS Short-Term Rating Rating Category Coverage IB Services* Buy Sell Buy Sell less than 1% less than 1% 43% 36% 1:Percentage of companies under coverage globally within the 12-month rating category. 2:Percentage of companies within the 12-month rating category for which investment banking (IB) services were provided within the past 12 months. 3:Percentage of companies under coverage globally within the Short-Term rating category. 4:Percentage of companies within the Short-Term rating category for which investment banking (IB) services were provided within the past 12 months. Source: UBS. Rating allocations are as of 31 March 2009. UBS Investment Research: Global Equity Rating Definitions UBS 12-Month Rating Definition Buy FSR is > 6% above the MRA. Neutral FSR is between -6% and 6% of the MRA. Sell FSR is > 6% below the MRA. UBS Short-Term Ratintt Definition Buy: Stock price expected to rise within three months from the time the rating was assigned because of a specific catalyst or event. Sell: Stock price expected to fall within three months from the time the rating was assigned because of a specific catalyst or event. Buy Sell UBS11 EFTA00775626

UBS Business Jet Update 10 June2009 KEY DEFIWTIONS Forecast Stock Return (FSR) is defined as expected percentage price appreciation plus gross dividend yield over the next 12 months. Market Return Assumption (MRA) is defined as the one-year local market interest rate plus 5% (a proxy for, and not a forecast of. the equity risk premium). Under Review (UR) Stocks may be flagged as UR by the analyst, indicating that the stock's price target and/or rating are subject to possible change in the near term, usually in response to an event that may affect the investment case or valuation. Short-Term Ratings reflect the expected near-tern (up to three months) performance of the stock and do not reflect any change in the fundamental view or investment case. EXCEPTIONS AND SPECIAL CASES UK and European Investment Fund ratings and definitions are: Buy: Positive on factors such as structure, management, performance record. discount; Neutral: Neutral on factors such as structure, management. performance record, discount: Sell: Negative on factors such as structure, management. performance record. discount. Core Banding Exceptions (CBE): Exceptions to the standard +1-6% bands may be granted by the Investment Review Committee (IRC). Factors considered by the IRC include the stock's volatility and the credit spread of the respective company's debt As a result, stocks deemed to be very high or low risk may be subject to higher or lower bands as they relate to the rating. When such exceptions apply, they will be identified in the Company Disclosures table in the relevant research piece. Research analysts contributing to this report who are employed by any non-US affiliate of UBS Securities LLC are not registered/qualified as research analysts with the NASD and NYSE and therefore are not subject to the restrictions contained in the NASD and NYSE rules on communications with a subject company, public appearances, and trading securities held by a research analyst account. The name of each affiliate and analyst employed by that affiliate contributing to this report, if any. follows. UBS Securities LLC: David E. Strauss; Cristina Fernandez: Darryl Genovesi. Brazil Regulation 388 Analyst Certification Except as provided above, each research analyst primarily responsible for the content of this investment research report, in whole or in part, certifies that: (1) all of the views expressed accurately reflect his or her personal views about those securities or issuers, and such recommendations were elaborated independently, including in relation to Banco UBS Pactual SA and/or its affiliates, as the case may be; (2) no relationship is maintained with any person who works for the subject companies which securities are mentioned on this research; (3) Banco UBS Pactual S.A. and/or its affiliates (including the funds, portfolios and investment clubs in securities managed by them) do not own directly or indirectly 1% or more of the total capital of the subject companies or are involved in the acquisition, alienation or intermediation of such securities in the market; (4) does not hold, directly or indirectly securities of the subject companies which represent 5% or more of his or her net worth, and is not involved in the acquisition, alienation or intermediation of such securities in the market (5) neither the analyst nor Banco UBS Pactual S.A. and/or its affiliates receive compensation for any services rendered or presents any commercial relationships with any of the subject companies or person, entity or any kind of funds which represents the same interest of the subject companies; (6) no part of any of the research analyst's compensation was. is, or will be directly or indirectly related to the pricing of any of the securities issued by any of the subject companies and/or to the specific recommendations or views expressed by the research analyst in this research although part of the analyst's compensation comes from the profits of Banco UBS Pactual SA. and/or its affiliates and, consequently, revenues arisen from transactions held by Banco UBS Pactual SA. and/or its affiliates. Company Disclosures Company Name General Dynamics Corp..I Textron Inc.2• 4• 5•"•"" 4" It "' Reuters 12-mo rating Short-term rating Mice Price date GD.N Neutral N/A US$59.25 09Jun 2009 TXT.N Neutral N/A US$11.95 09 Jun 2009 Source: UBS. All prices as of local market close. Ratings in this table are the most current published ratings prior to this report. They may be more recent than the stock pricing date 2. UBS AG, its affiliates or subsidiaries has acted as manager/co-manager in the underwriting or placement of securities of this company/entity or one of its affiliates within the past 12 months. USS12 EFTA00775627

UBS Business Jet Update 10 June 2009 4. Within the past 12 months, UBS AG, its affiliates or subsidiaries has received compensation for investment banking services from this company/entity. 5. UBS AG, its affiliates or subsidiaries expect to receive or intend to seek compensation for investment banking services from this company/entity within the next three months. 6a. This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided. 6b. This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-investment banking securities-related services are being, or have been, provided. 6c. This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-securities services are being, or have been, provided. 7. Within the past 12 months, UBS Securities LLC has received compensation for products and services other than investment banking services from this company/entity. 16. UBS Securities LLC makes a market in the securities and/or ADRs of this company. 18. The U.S. equity strategist, a member of his team, or one of their household members has a long common stock position in Textron Inc. 22. UBS AG, its affiliates or subsidiaries held other significant financial interests in this company/entity as of last month's end (or the prior month's end if this report is dated less than 10 working days after the most recent month's end). Unless otherwise indicated, please refer to the Valuation and Risk sections within the body of this report. General Dynamics Corp. (US$) Prce Target (US$) — SIOCk Ptt. (MI 120- 140- SO- E0- 40- 20- 0 1 1 I I I I I I I I I I I I I I I I I S s 7 V / 2 4 / I 7 * S E S G S :5 5 5 6 3 6 4 1 4 14 I V I V -6 6 3 6 -6 6 I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I SW 2 Btei News No Paring Source: UBS; as of 09 Jun 2009 UBS 13 EFTA00775628

UBS Business Jet Update 10 June 2009 Textron Inc. (US$) — Prce Toga (M) — S1alt Prke 111851 0.0 i i i i i i i i i i i i asa 8 8 8 T 8. 1 t 8. t - i 1 4 ,5 3 -4 , .7 ,-. . L a 3 5 3 I I ettil Buy MSC a No Riling Source: UBS; as of 09 Jun 2009 Note: On August 4, 2007 UBS revised its rating system. (See 'UBS Investment Research: Global Equity Rating Definitions' table for details). From September 9, 2006 through August 3, 2007 the UBS ratings and their definitions were: Buy 1 = FSR is > 6% above the MRA, higher degree of predictability; Buy 2 = FSR is > 6% above the MRA, lower degree of predictability; Neutral 1 = FSR is between -6% and 6% of the MRA, higher degree of predictability; Neutral 2 = FSR is between -6% and 6% of the MRA, lower degree of predictability; Reduce 1 = FSR is > 6% below the MRA, higher degree of predictability; Reduce 2 = FSR is > 6% below the MRA. lower degree of predictability. The predictability level indicates an analysts conviction in the FSR. A predictability level of '1' means that the analysts estimate of FSR is in the middle of a narrower, or smaller, range of possibilities. A predictability level of '2' means that the analysts estimate of FSR is in the middle of a broader, or larger, range of possibilities. From October 13, 2003 through September 8, 2006 the percentage band criteria used in the rating system was 10%. 118514 EFTA00775629

UBS Business Jal Update 10 ../Une 2009 Global Disclaimer Ths report has been pr epared by UBS Sedenes LIC. an affilato d UBS AG. ISS AG. es subsidiane:. iranchas and affnatos aro rofared sa heroin as UeS In ~tam muntres UBS AG is reterred lo as ISS. SA. This rarorl N br ditdrbulbn Only under such Cirgemblaal es may be permitled by appligable larv NOMI% in NS rapen Cantbas e revesentatiOn hall any invedmem elialegy Or recornrcalaban conlained hemn is sutte or aprcgnale lo a recpwe's rdwidual arcuratances ar Mennm cuablutms a personal reammendacn. k Is mOlshed sokay lor rdamatsin pen:oses ll don not constoso an acholisament ~Inna to be ocentrad as a solortabon or an ofte to boy or seg any scaatc-s cr related blanca instruments in arg mnsdicson No reeMSGMS/Ora or wanarty, einer express p irrolied. b bovdel n tebro LO Mo «uroet tOmPløNnetat d reiebtity «Ia information containad heroin. °sumt Mei raspat to information tamaning UBS AG. M stbSideriat, end servistes, nar b i inended lo be a ~nøde ~antent Or litenmary Of Me IrliOuntatt. maken Cr OantnOpmente Marred » in to rep» ISS 0Cerxn01 enderlako Mat ~stas ml oblain Fores. ner wl d fl ara wIn feromon arry investment profets nor accom any loblny ist any nyostmenl losses. Invesrenrs rtrOIVO orks and amatørs should fl ørta f/Adente in mating Mek rmeternlint OBCbbns. The report ~od nil be reger000 by redreenbl Sd %Milde Nr me Mareits) el Uh« Orm lodgamen Any opinions espreabed in the report we sultal to chanse «han arme and may diller er be convary lo opinorts exprossed byonner business areas or groups d UBS as a raun of usng different assurrptons and duna. Romarar, we raa». update and toiss con:rage staty al the dame«, d UBS Mrcesenant Bank Rosoarch Management The analysis torvanod horon n based an nutorcos assumplions, DflerønleniumbliOn$CCub ~A in ~meny «femnt res" The mealMtret) maronsttle Mi me perannalen ot Mil report nen inter«, wth Seding ~Å pen3enner. 8.9198 personel end off* COntaluendell ta ho supeen Ol galdring. Maftesuing and tnterveling marka infOrnedies VBS hunder ro Øge6Onb weale Or »MO Guffent Ihe ~en COntarred heren. VEIS relea kn infermabon banen to contra Mo floa cl reformabon comained re ap or moro areas ~hin UBS. ireo aner areas. unns. spas ar affilates d UBS. The ocenoensabon of uno analyse who madam/ this report ei getemarree excenively Dy 1050510, management end senior management (rot Støping investment benkng) enormt compentalon is not OM« On inveermart banking munnos. hostup. carmansaban may rable to the revene-x:Not ISS barostment Bank~ shato. or stechinvalmeM banbng. saks and Irading are a part The ~BOS deenibed heten Møy nOlbe ealable Mr salen el ~Caen P 10 cerban calegOrieS Olinvealon. Name. derbalin9 Mala% end Ntwes eve ner avbod, lor el investors, end truing n Mao n:aux-anis n consderod nsky. Ila-Nage and assciaacked spurtes may Inve a high deppe d nsk and rroy be F45y valabla in responsa lo faxtuabans In matem talas and «hor maket concloars Pasl sonormance n not nocessarly indeawo or h.ouro rostils.Foreign curency rala o4 exchange may advemeN anta tha valse. snoa of ncome c4 any secunty Cr repsid inst!~ menhoned in the (Opal For inveal~ °chice hade eseculion or olher !agurk& aeentl ithtdd ~Ot Meir Kcal abs tepresent ne ~el UBS h sol d ile Itates. ror any of UBS' ci any of ils alheat.. druen ornp»,00s er agents accept any labley lor an loss ar drage anane out of tro us* cl all er any part of mo report For 'Danna instruments 'Pennal to ganing on an EU readatcd marker_ UDS AG. es alluta or subkones (*sale:Ing UBS Saualets LLC arrfor UDS Global Markels LP) acls as a morkel maker er hovi:tty provider 9n iaccadence Mlh he intelpieration or ~e IBM* n the LAG in Me %arna& Metroen% «the 'sover Save triel vaser. Me KW sy d liquidity grem» is ostrad out in accadarce edb Ihe det neon phon to t by Me lans and regulators c4 any Odlar EU tunsdiceons. such Kemston ms separator), otsdosed in Mrs research ropar. UBS and ds Sløres and Ørns may have king ar snørt posoons. trade as anna*, and boy and sol n naue-mas or dem/alnes dontdod heren. Any pri008 stend in the reppil eie ra infamalfn sym" only end 00 nil reatelent vaksen:an fOr jau/løvet seedete Or Other inetrumente The!e is no representatIon mel any Ininsaction can or °aukt have bann effectod al Mose coca and arr,. onces donor neon:aret reden UBS's mlernal bodd and records or Moortbcal moda-based vakpions and may be basen on cerlain Sliterplons Different alauironen. Dy UBS p Mynthem Source. Møy )4I0 Subflanbaly different Manns United Kingdom and the rest al Europa Except as ~vise specned harem this mesenat is communicated by UBS larme.; a subsdary of OBS AG. to persons sno ae elgtle caneerpartiee P ~tame tisnes and N Only eveialne 10 tutte Semons The ~Nam Glonat hanen bowl net apery tO. and ShOLIO mol be releet NoOn by. mal drent& IASS Limked is oulhOreed End regulated by the Financial StenCea AdhOdly (FSA) VDS reseerCh COmplitn vere el ina FSA Movirementrl end Iowa ~ing trottoara. and held ere irbetal00 On me research fante applicake. Francos Prosorod by UBS Limlod and *isfri:Med by BØS Limled and ISS Securoo-s Franco SA. UBS Securtes Franco SA is reg.ibled by Mo ~ante da Mychos Famnen (AMF).11(hcfe an arolysl of UBS Secunbes Franco SA. has cuerreured to tis report. Uro ropa) is alm deenrod lo have be«t prepared by ISS Securtes Franco SA. Germany: Preparttl by UBS Lim ned and disintutod by UDS Limiter and VBS DeduNared AG. UBS Deursdnand AG is regulated by to Bena:annan fur Finaralensrlasti~cht geaFril. Spaln: Preparat by UDS Limited and Ostntbrod by UDS Limled and Les Savna*: Espana SV. SA_ UDS Securtes Espana SV. SA h regibad by Mo Garnison National del therC800 de Vegre. (004V) Tariff: Nedad by UBS Manke Crawler AS On be alt d and Ontribirted by ISS Limited Ramla Prepøred end detrbuled by UBS Samniese C.ISC Stamnane 08Inbufee by UBS AG ID plinttra whO eie instilutionel investor. Only. ösly: Premant0 by UBS LiY1690 end delrbulal by ISS timasa and VBS INN Sim Sta UBS Kala Sim S.pA. is regulated hy Me Bank of Italy and by Uno Commimmna N31Xnale per le Socom o la Bana (CONSOB). Where an analyse of UBS esla Sm SpA tas cordnbned sa he report. Me repan M SNO dømet 10 heve been prepered by UBS IUIa Sint SP A South Afne': UBS South .4~ (Pryl timAad (Regebellon No I99$01114007) ise monter of ON JSE Linlod. the Sann ~n Nette% behengt ad Ihe Bend Exchenge ol SOulh »lea UB& SOulhAiriea (My) levnet, is Si buthfriSed Pirane« Senkes Provider. Dent «ile MOI end phylikel ~raa arka Ist d es ananas att avahablo on repos or !My bo auessed al http~uto.co.za. United States: Cnintttod sa US pesons by othar Soanbes LIC or by UBS Eina-idd Seeren be.. intry:Seried OIUBS AG. Or by e glove. Subadary Serie» of LASS AG mel is n« regetered ft, e US boker-06SW (0 'non-US affatatie). 10 naNrar US insanboal hyet:som ca si. LICS Seeda« LIC Or UDS Finerciel Services Inc. °ocean responsibilly kr Ihe (talent Of e report preparat by ~NN nOraUS &RIM.) urban debculed P US perant, by ISS Datorase LLC a UBS Financial Sennoes Inc Al sansa-am by a US person in Ihe stomla» mentoned in Mn report musl bo cdected mrough ISS SooJnoes LLC a UBS Financial Service: Inc.. and not Ovtregh e anIS ersliele. Canada Ditedbutal bar UBS %anten Canada Inc.. e subsidiery Of UBS AG ende nnmber et Me prin~ CenaMan MOCk exchanges b C ME A steternent Of ile finarroal randbon and a list of indreclas and senior orka, we be provkod spon roguesl. Hong Kong: Combotod by UBS Sanses Asia Lerstad. Singapore: Disulamed by VBS Sauane Pta. Ltd or UBS AG. Singapore Branch. Japan: Dartbried by UBS Scarrbas Japan Ild to nsttutonal rromeors ars %Tem Oss romt has toen prepared by UDS Secumies Japan Ltd. UDS ~INN Japan Ltd b Ia artør. Pirbileaw end ditibibul« et the reptre. Arelbals: Chilrbdtri by UBS AG (madet et Ateoalen Fednalif %MOSS LiCento NO 231087) end ISS &Kun/ kabel. LIC (HOV« d Australien Fhanc41 Servicen Liene No 2310981 spy to WhoNeale' (nente es csethed by 57615 ol me CorpoN~s Att 2001. New Zealand: DiSriboted Oy UBS New Zealand Ltd. An nrostmord 30,115p and invalrom braker dsdosure Malerne« is araiblato on ramost and frose d charge by %Iltog b PO 8c« 45. Auckland. N.Z. China: Dismated by UBS ~ib% CO. Limited Dubai: Tse renende snipene, Sid dann:PM by VEIS AG Dubai Banda a intende4 fOr RON&Sbnal Plente Orly enda ra br lunner Ontribution who the Vnted Arab &neter,. The dsc»surc-s cutanod en rosoarch repaln produced by UBS lirnted shall be gavornod by and ~cd n accoManco ,arm Engish law. ISS toechoelly databit the redetibulan «he ~Ned n whn»Or a pen withOrA the watten Pinnieebn t4UBS and UBS e00,10% nOIablily shatallevin kg me ~CM Of hird parti% in tie respect r UBS 2009 The key symbol end UBS ere emong hs nNisienxl end unregatereel traelenlailel UBS. All dahle nnrannk *UBS LES 15 EFTA00775630