$350,000,000 Offering of Series 1 Medium Term Notes

National Bank of Canada (the "Bank") announces that it has entered into an agreement with a syndicate of agents regarding the distribution in Canada of $350,000,000 of Medium Term Notes series 1 (the "Notes") dated June 1, 2000 and due June 7, 2010. The agents have agreed to distribute on behalf of the Bank the Notes at a price of 99.65 % of their principal amount. The purpose of the Offering is to enlarge the Bank's Tier 2B capital base. The Bank will promptly file with the securities commission or other similar authority of each of the provinces in Canada and with the Superintendent of Financial Institutions Canada a pricing supplement regarding the Notes.

The syndicate of agents is led by National Bank Financial Inc. and is also comprised of BMO Nesbitt Burns Inc., Scotia Capital Inc., RBC Dominion Securities Inc., CIBC World Markets Inc., Merrill Lynch Canada Inc., TD Securities Inc., BLC Securities Inc. and Casgrain & Company Limited.

Closing of the distribution of the Notes is expected on June 7, 2000.

For further information:

Jean Turmel
President, Financial Markets, Treasury and Investment Bank
National Bank of Canada
Tel.: (51) 394-6398

Louis Vachon
Senior Vice President, Treasury and Financial Markets
National Bank of Canada
Tel.: (514) 394-6408