Press Releases

National Bank launches a new issue of Advantage 8TM Principal-Protected Notes/Series 1

Montreal, 29 May 2006 -

·   100% principal protection at maturity
·   Minimum return of 25% for 8 of the 20 equities included in the
    reference basket
·   Term of 2.5 years
·   No management fees

National Bank launched a new issue of Advantage 8TM Principal-Protected Notes/Series 1. This investment solution enables investors to benefit from 100% principal protection and the performance of a portfolio of 20 common shares from major Canadian, American, European and Japanese companies.  The Notes will be on sale until June 27, 2006.

This short-term investment solution guarantees the buyer a 25% minimum return on 8 of the 20 shares in the reference portfolio. Advantage 8TM Principal – Protected Notes also offer global diversification with no currency risk.

The price of each Note is $100 and the minimum investment is $2,000. At maturity, on December 30, 2008, investors will receive their principal plus an amount equivalent to the average return of the 20 shares in the reference basket, composed of a fixed 25% return on the 8 top performing shares and the actual return on the other 12 shares. 

Advantage 8TM Principal – Protected Notes qualify for Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), Deferred Profit Sharing Plans (DPSPs) and Registered Education Savings Plans (RESPs).  They can also be sold before maturity, subject to market conditions and early trading charges.

The Notes can be purchased through National Bank Direct Brokerage at 1-800-363-3511 or (514) 866-6755, from National Bank Financial advisors at 1-800-361-8838 or (514) 879-2222, as well as from investment advisors or financial planners in Canada.

This document is for information purposes only and does not constitute an offer to sell or a sollicitation of an offer to buy the Notes referred to herein.. Advantage 8™ Principal-Protected Notes Series 1 is a principal protected investment redeemable at maturity. Any change in the performance of the Reference Basket will have a direct impact on the return payable. It is possible that no return will be paid. An investment in the Notes is subject to a number of risk factors. Potential purchasers should consult the Information Statement before investing in the Notes.

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 $110 billion in assets and, together with its subsidiaries, employs 16,955 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