National Bank Financial acquires Putnam Lovell Group

National Bank Financial Inc., a subsidiary of National Bank of Canada (TSX: NA), announced today that it has entered into a definitive agreement to acquire the U.S. based investment bank Putnam Lovell Group Inc. ("Putnam Lovell"). Putnam Lovell is a premier investment boutique with a global practice in mergers and acquisitions, structured finance, equity research, equity sales and trading and private equity, all focused on the financial services industry. Putnam Lovell has offices in New York City, San Francisco, Los Angeles and London, England. The transaction is consistent with National Bank Financial's strategic commitment to develop capabilities in areas where it has demonstrated domestic strength and momentum, without compromising National Bank's strong balance sheet.

"The National Bank can make investments, such as this one today, because of its strong capitalization. It will enable us to strengthen our financing activities, which are primarily geared to meeting the needs of medium-sized enterprises. This acquisition also means that the National Bank can consolidate the enviable niche it has carved for itself in the area of advisory services in the financial services industry and go head-to-head in the global marketplace," declared Jean Turmel, President – Financial Markets, Treasury and Investment Bank at the National Bank.

"This acquisition represents a step forward in the global arena and an important strengthening of our domestic Canadian position," said Kym Anthony, President and CEO of National Bank Financial. "The combination of Putnam Lovell's advisory services with National Bank Financial's Financial Institutions Group, to be called Putnam Lovell NBF, will be a formidable force in the cross-border advisory and equity underwriting business," he added.

With this transaction, National Bank Financial is asserting itself as a leader in the financial services advisory field. Given their distinct geographic representation, Putnam Lovell and National Bank Financial are highly complementary entities generating significant revenue synergies. For Putnam Lovell, National Bank Financial represents a solid capital base with depth in equity underwriting, derivatives, foreign exchange and corporate lending. For National Bank Financial, Putnam Lovell represents an important expansion into the international arena of corporate finance, equity sales and trading and research.

"National Bank Financial's resources and product breadth will be a natural complement to our existing client base and business," said Donald H. Putnam, Chairman and CEO of Putnam Lovell Group. "We are delighted to have the opportunity to team up with National Bank Financial and look forward to growing the company together, client by client, going forward," he added.

The acquisition is expected to close in May 2002 and is subject to the receipt of customary regulatory approvals.

About Putnam Lovell

Founded in 1987, Putnam Lovell is a premier investment banking boutique providing a full array of services in mergers and acquisitions, equity research, sales and trading, specialized structured finance and private equity investment, focused exclusively on the financial services industry.

About National Bank Financial

National Bank Financial is one of the largest full-service investment dealers in Canada. In 1999, National Bank of Canada acquired and subsequently merged First Marathon and Lévesque Beaubien to create National Bank Financial. With almost 3,000 employees, it has 92 branches in Canada, the U.S. and the United Kingdom.

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 has assets of over $75 billion and, together with its subsidiaries, it employs over 17,000 people. The Bank's shares are listed on the Toronto Stock Exchange.

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