Redemption for cash preferred shares series 11

Montreal, 9 January 2002 - 

The National Bank of Canada (TSE: NA) announced today that it will redeem, for the purpose of cancellation, all of its Non-cumulative First Preferred Shares Series 11 (TSE: NA.PR.H) on Friday, February 15, 2002, for $25.00 per share, together with $0.50 representing declared and unpaid dividends per share to the redemption date, subject to regulatory approvals. The Bank will pay the dividend of $0.50 to the registered holders of the Preferred Shares Series 11 as of January 11, 2002. 4,000,000 Preferred Shares Series 11 are currently outstanding and making the total value of the transaction $100 million. This funding, provided solely from the Bank's general funds, is part of the Bank's capital management. At October 31, 2001, including the impact of the redemption of the Preferred Shares Series 10, the Bank's Tier 1 capital was 9.41% (or 9.19% excluding the Preferred Shares Series 11). The notice of redemption with the letter of transmittal will be promptly sent to the holders of Preferred Shares Series 11.

National Bank of Canada is an integrated group whose mission is to provide comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. The National Bank offers a full array of banking services, including all the investment banking services required by large corporations. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. The National Bank has assets of over $75 billion and, together with its subsidiaries, it employs over 17,000 people. The Bank's shares are listed on the Toronto Stock Exchange.

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For further information, please contact ( the telephone numbers are for the exclusive use of journalists and other media representatives ) :

Elaine Carr
Director, Investor Relations
(514) 394-0296

Carole Gagné
Senior Manager
Public Relations and Communication
(514) 394-6991

Martin Ouellet
Vice-President and Treasurer
Treasury and Financial Markets
(514) 394-8974