National Bank to Conduct Smart Card Pilot Project in St-Jerome

MONTREAL, QUEBEC–National Bank (TSX:NA) has announced that it plans to carry out a smart card pilot project in St-Jerome in summer 2008. This project will enable the Bank to test the compatibility of its ABMs and systems with this new technology in a controlled environment while ensuring the reliability of various other elements involved in payment and transaction processes.

“Smart card technology is a powerful tool that will open up a world of opportunities. This project is evidence of the Bank’s commitment to developing a new line of innovative, user-friendly and secure products for clients,” stated Paolo Pizzuto, Vice-President - Electronic Payment Solutions.

The entire Canadian financial market is migrating toward smart card technology. In line with the rest of the industry, National Bank will gradually start introducing smart cards in 2008 and has already announced its participation in a chip technology trial in Kitchener-Waterloo in spring 2008.

National Bank has always prided itself in offering its clients efficient, secure and leading-edge credit and debit card solutions and has been working to adapt its infrastructure over the past few months in preparation for the new smart cards.

“These various pilot projects will ensure a smooth transition to this advanced technology,” adds Paolo Pizzuto.

A smart card is a credit or debit card with a built-in microchip containing encrypted data. In addition to ensuring greater protection and security, this technology will provide a platform for new product and service offerings in the future. 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 $130 billion in assets and, together with its subsidiaries, employs 16,852 people. The Bank’s securities are listed on the Toronto Stock Exchange (NA). For more information, visit the Bank’s website at www.nbc.ca.