Julius Baer presents additional information on the acquisition of the International Wealth Management business of Bank of America Merrill Lynch outside the United States and Japan

Regulatory News:

Today, Boris F.J. Collardi, CEO of the Julius Baer Group (SWX: BAER), and Dieter A. Enkelmann, CFO, will present to equity analysts and investors in London additional information on the acquisition of the International Wealth Management business (IWM) of Bank of America Merrill Lynch outside the United States and Japan.

The presentation describes in further detail the transfer of financial advisers (FAs) and assets under management (AuM) from IWM to Julius Baer as part of the acquisition and distinguishes between the various types of sales, including the bank sale in Switzerland, transfers as part of (non-bank) legal entity sales (e.g. Uruguay, UK, Spain, India), and business transfers (e.g. Hong Kong, Singapore).

The presentation will be webcast live on the internet via www.juliusbaer.com/webcast. The slides for the presentation are available from our website on the same web page.

Of total AuM expected to be acquired, approx. 80% is estimated to be reported by end 2013

Additional details on Julius Baer’s expectations for the timing of FA and AuM transfers along with the associated financial impact for Julius Baer over the integration period will also be presented. These transfers will start following the principal closing which is now expected to take place in the first quarter of 2013. Based on Julius Baer’s current integration targets, approximately 80% of the total AuM expected to be acquired are estimated to be reported at Julius Baer by the end of 2013.

Finally, Julius Baer will set out targeted profitability improvement measures relative to the historical cost base of IWM, which will include a significant reduction of former Bank of America corporate overhead and other allocations not required going forward in the Julius Baer structure, rightsizing measures for the middle and back office functions of the combined group, as well as further benefits stemming from leveraging further scalability effects. As a result, Julius Baer is targeting to reduce the pro forma combined staff base of approximately 5,700 in over 50 locations by 15% to 18%. This is expected to lead to a stand-alone implied cost-income ratio of approximately 70% and a stand-alone implied pre-tax profit margin on an adjusted profit basis of approximately 25 basis points for the IWM business on Julius Baer’s platform in 2015. At that time, the effective tax rate for the combined Julius Baer Group is currently expected to be below 16% (on an adjusted profit basis).

Julius Baer expects that the transaction will be at least EPS neutral in 2014 and is targeting EPS accretion of 15% in 2015. This accretion target is on the basis of adjusted profit, i.e. excluding transaction, integration and restructuring expenses and amortisation of intangible assets related to acquisitions or divestitures; based on the closing share price prior to the announcement of the transaction on 13 August 2012; taking targeted capital ratios into account for the calculation; and relative to a scenario in which the acquisition does not take place and the Julius Baer Group does not undertake any share buybacks until the end of 2015.

The presentation also includes information derived from the audited combined financial statements for IWM as at and for the years ended 31 December 2011 and 2010, prepared in accordance with IFRS. It also includes the reviewed interim combined financial statements for IWM as at and for the six months ended 30 June 2012, prepared in accordance with IAS 34.

Trading update of Julius Baer Group as of end of August 2012

As at the end of August 2012, Julius Baer Group’s AuM increased to a new record high of CHF 184 billion, an increase of CHF 14 billion, or 8%, since the end of 2011. Total client assets grew to CHF 276 billion, an increase of CHF 18 billion, or 7%. The increase in AuM resulted from continued net new money inflows close to the top end of the Group’s medium-term target range, a positive market performance impact supported by sustained gains in the global equity and bond markets, as well as a positive currency impact, mainly from the strengthening of the US dollar. Partly impacted by a small contraction in client activity over the summer period, the gross margin in the first eight months was slightly lower than the 98 basis points reported for the first six months of 2012 and as a result the cost-income ratio was slightly higher than the cost-income ratio reported for the first six months of 2012. As at the end of August, the Group’s BIS total capital ratio was 24.8% and its BIS tier 1 ratio 22.4%. In September, Julius Baer successfully raised CHF 250 million in additional non-core tier 1 capital, as part of its financing of the IWM acquisition.

About Julius Baer

Julius Baer is the leading Swiss private banking group, with an exclusive focus on servicing and advising private clients. Julius Baer’s total client assets amounted to CHF 276 billion at the end of August 2012, with assets under management accounting for CHF 184 billion. Bank Julius Baer & Co. Ltd., the renowned Swiss private bank with origins dating back to 1890, is the principal operating company of Julius Baer Group Ltd., whose shares are listed on the SIX Swiss Exchange (ticker symbol: BAER) and form part of the Swiss Market Index (SMI) of the 20 largest and most liquid Swiss stocks.

Julius Baer employs a staff of over 3 600 in more than 20 countries and over 40 locations, including Zurich (head office), Dubai, Frankfurt, Geneva, Hong Kong, London, Lugano, Milan, Monaco, Montevideo, Moscow, Shanghai and Singapore.

For more information visit our website at www.juliusbaer.com

This media release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, or any offer to underwrite or otherwise acquire any shares in Julius Baer Group Ltd. (the "Company ") or any other securities nor shall it or any part of it nor the fact of its distribution or communication form the basis of, or be relied on in connection with, any contract, commitment or investment decision in relation thereto. Any decision to purchase registered shares of the Company in the context of the Rights Offering should be made solely on the basis of information contained in the Offering Circular and any supplements thereto. Copies of the Offering Circular and any supplements thereto are available at Credit Suisse AG, Zurich, Switzerland (telephone +41 (0) 44 333 4385; fax +41 (0) 44 333 3593; email: equity.prospectus@credit-suisse.com). This media release does not constitute a prospectus pursuant to art. 652a and/or 1156 of the Swiss Code of Obligations or art. 27 et seq. of the listing rules of the SIX Swiss Exchange.

The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933 (the "Securities Act”) and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act. There will be no public offer of registered shares of Julius Baer Group Ltd. in the United States.

This media release includes forward-looking statements that reflect Julius Baer Group Ltd.’s intentions, beliefs or current expectations and projections about the transaction described herein, the financing thereof, potential synergies and the Company’s and the combined group’s future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies, opportunities and the industry in which the Company operates. Forward-looking statements involve all matters that are not historical fact. The Company has tried to identify those forward-looking statements by using the words "may”, "will”, "would”, "should”, "expect”, "intend”, "estimate”, "anticipate”, "project”, "believe”, "seek”, "plan”, "predict” and similar expressions or their negatives. Such statements are made on the basis of assumptions and expectations which, although the Company believes them to be reasonable at this time, may prove to be erroneous.

These forward-looking statements are subject to risks, uncertainties, assumptions and other factors that could cause the Company’s or the combined group’s actual results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies or opportunities, as well as those of the markets they serve or intend to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Important factors that could cause those differences include, but are not limited to: actual amount of AuM transferred to the Company, which may vary from the expected AuM to be transferred; breakdown of client domicile of the actual AuM transferred, which may vary from the breakdown based on preliminary data; delays in or costs relating to the integration of the Merrill Lynch International Wealth Management business, limitations or conditions imposed on the Company in connection with seeking consent from regulators to complete the acquisition, changing business or other market conditions, general economic conditions in Switzerland, the European Union, the United States and elsewhere, and the Company’s ability to respond to trends in the financial services industry. Additional factors could cause actual results, performance, or achievements to differ materially. The Company, the Merrill Lynch International Wealth Management business and each such entity’s directors, officers, employees and advisors expressly disclaim any obligation or undertaking to release any update of or revisions to any forward-looking statements in this media release and any change in the Company’s expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation.