National Bank Concludes Acquisition of Altamira

Montreal, 12 August 2002 - 

National Bank of Canada today announced that it has concluded its acquisition of the mutual fund manager and distributor Altamira.

According to Réal Raymond, President and Chief Executive Officer of the National Bank, "this acquisition will significantly expand the Bank's presence outside Quebec in the area of wealth management, double its mutual funds under management, broaden its offering of products and services, and increase profitability."

The acquisition cost for the Bank was $467.3M, including repayment of $201.6M in debt.  A portion of the payment was made in the form of shares, namely, 271,000 shares or the equivalent of $8.25M. The transaction has been approved by all the relevant regulatory authorities.

Altamira manages approximately $5.6 billion in assets, including $4.5 billion in mutual funds for individual investors. The company employs 290 people, including 115 advisors, at its eight branch offices and three call centres in Canada. Altamira, which has some 240,000 customers, distributes and manages 47 of its own mutual funds, making it the second largest independent direct supplier of no-load mutual funds in the country.

National Bank of Canada is an integrated group which provides 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 retail, corporate and investment banking. 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, employs over 17,000 people. The Bank's securities are listed on the Toronto Stock Exchange.

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Denis Dubé
Director of Public Relations
National Bank of Canada
Tel.: (514) 394-8644

* the following telephone number and e-mail address are intended solely for the use of journalists and other media representatives