March 14, 2005 11:44 ET

National Bank Confirms the Success of its Global Blue Chip Note by Launching a Second Issue and Adding Reduced Fee Options




MARCH 14, 2005 - 11:44 ET

National Bank Confirms the Success of its Global Blue
Chip Note by Launching a Second Issue and Adding
Reduced Fee Options

MONTREAL, QUEBEC--(CCNMatthews - March 14, 2005) - Spurred by sales of
$75 million for the first issue of its Global Blue Chip Note, which
ended on March 1, 2005, National Bank (TSX:NA) has launched a second
issue of this popular new product.

"Sales of this note were made via the Bank's branch network as well as
by independent brokers and planners because the note was offered through
FundServ," said Charles Guay, President and Chief Operating Officer of
National Bank Securities.

Drawing on this success, National Bank began offering a second issue of
the Global Blue Chip Note on March 2, 2005, which will be available
until 4:00 p.m. on April 22, 2005. The Global Blue Chip Note provides
access to an index made up of 30 of the world's best companies. The
principal of the note, which can be sold on the secondary market before
maturity, is fully protected by National Bank if the note is held to

Reduced fee options

National Bank is breaking new ground with this second issue by becoming
the first financial institution to offer an institutional series
featuring lower management fees for larger investments. The details of
this issue are summarized below:

FundServ code Minimum Management fee
Investor series NBC 021 $500 2.95%
Institutional series NBC 022 $100,000 2.25%
Million series NBC 023 $1,000,000 1.55%

"With this offering, National Bank has made its Global Blue Chip Note
more attractive for wealthy individual and institutional investors who
are also looking for investment solutions that both protect principal
and offer good potential returns," explained Mr. Guay.

National Bank Securities is a wholly owned subsidiary of National Bank
of Canada. It offers a full range of investment solutions to both
individuals and business clients.

(i) The Principal-Protected Global Blue Chip Note (the "Note") is a
principal-protected investment redeemable at maturity. The Note offers
unlimited return potential over an 8-year term. National Bank of Canada
may, at its discretion, redeem the Note on the 4th anniversary of its
issue date with a premium of 46.41% representing an annual compound
return of approximately 10%. In such a case, the investor will not fully
benefit from the appreciation in the value of the benchmark portfolio.
Variation in the benchmark index, which corresponds to the variation in
the portfolio return, will have a direct impact on the interest payable.
It is thus possible that no interest will be paid. A management fee will
be charged to the benchmark portfolio, accruing daily and will be
deducted monthly in arrears (2.95% per annum for a minimum investment of
$500, 2.25% per annum for a minimum investment of $100,000 and 1.55% per
annum for a minimum investment of $1,000,000).

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

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


Contact Information

    National Bank of Canada
    Denis Dube
    Manager, Public Relations Department
    (514) 394-8644