National Bank of Canada announces Initial Public Offering of NBC Capital Trust

Montreal, 19 May 2006 - 

National Bank of Canada (the “Bank”) today announced that NBC Capital Trust, an open-end trust established under the laws of Ontario, has filed a preliminary prospectus with the various securities commissions across Canada relating to the offering of Trust Capital Securities – Series 1 (NBC CapS – Series 1). The Bank expects that the NBC CapS – Series 1 will qualify as innovative Tier 1 Capital of the Bank for regulatory purposes.

The proceeds from the issue of NBC CapS – Series 1 will be used by NBC Capital Trust to purchase a senior deposit note from the Bank, which will enhance the cost effectiveness of the Bank’s capital structure. The Bank will use the proceeds from the sale of the deposit note for general corporate purposes. National Bank Financial Inc. is acting as lead underwriter on the offering.

About National Bank of Canada
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. 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. National Bank has more than $105 billion in assets and, together with its subsidiaries, employs 16,993 people. The Bank’s securities are listed on the Toronto Stock Exchange (NA:TSX). For more information, visit the Bank’s website atwww.nbc.ca.

Information (The telephone number provided below is for the exclusive use of journalists and other media representatives):

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