Press Releases

National Bank of Canada announces new preferred Share issue

Montreal, 31 March 2008 -

National Bank of Canada (“National Bank”) (TSX: NA) today announced that it has entered into an agreement with a group of underwriters led by National Bank Financial Inc. to sell an issue of 6 million Non-Cumulative Fixed Rate First Preferred Shares, Series 20 (the “Preferred Shares”), carrying a face value of $25 per share, to raise gross proceeds of $150 million. Holders will be entitled to receive non-cumulative preferential quarterly dividends in the amount of $0.375 per share, to yield 6.00% annually.

National Bank has also granted the underwriters an option to purchase, on the same terms, up to an additional 900,000 Preferred Shares. This option is exercisable in whole or in part by the underwriters at any time up to 30 days after closing of the offering. The maximum gross proceeds raised under the offering will be $172.5 million should this option be exercised in full.

National Bank may redeem the Preferred Shares, subject to regulatory approval, in whole or in part, at a declining premium after five years.

The net proceeds of this offering will be used for general corporate purposes and will qualify as Tier 1 capital for National Bank. The expected closing date is April 16, 2008.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell securities in the United States.

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. 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. National Bank has more than $120 billion in assets and, together with its subsidiaries, employs 16,856 people. The Bank’s securities are listed on the Toronto Stock Exchange (TSX:NA). 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