Press Releases

National Bank announces new preferred share issue

Montreal, 24 February 2005 -

National Bank today announced a domestic public offering of $200 million of Non-Cumulative Fixed Rate First Preferred Shares Series 16 (the “Preferred Shares”).

The Bank will issue 8 million Preferred Shares priced at $25 per share and holders will be entitled to receive non-cumulative preferential quarterly dividends in the amount of $0.303125 per share, to yield 4.85 per cent annually.

Subject to regulatory approval, on or after May 15, 2010 the Bank may redeem the Preferred Shares in whole or in part at a declining premium.

The net proceeds of this offering will be used for general business purposes and will qualify as Tier 1 capital of the Bank.

The offering will be underwritten by a syndicate led by National Bank Financial Inc. The expected closing date is March 15, 2005.

The Preferred Shares have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered, sold or delivered within the United States of America and its territories and possessions or to, or for the account or benefit of, United States persons except in certain transactions exempt from the registration requirements of such Act. This release does not constitute an offer to sell or a solicitation to buy such securities in the United States.

About the 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. 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 more than $90 billion and, together with its subsidiaries, employs close to 17,000 people. The Bank’s securities are listed on the Toronto Stock Exchange (NA:TSX). For more information, visit the Bank’s website at www.nbc.ca.

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

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