National Bank of Canada Announces New Preferred Share Issue

MONTREAL, QUEBEC, Mar 31 (MARKET WIRE) --
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.

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

Contacts:
National Bank of Canada
Denis Dube
Manager, Public Relations Department
514-394-8644

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