Scotiabank Closes Deal to Expand Asia-Pacific Operations with a Minority Investment in Thailand

Scotiabank today announced that it has secured regulatory approvals in both Thailand and Canada and completed the acquisition of 24.99 per cent of Thanachart Bank, Thailand's eighth-largest bank and leading automobile lender, for Bht7.1 billion (approximately Cdn$225 million). Scotiabank purchased 156,501,200 shares from Thanachart Capital and 276,975,500 new shares issued by Thanachart Bank at Bht16.37 per share.

"For more than a century, Scotiabank has recognized that unique opportunities for growth can be found beyond Canada's borders," said Rob Pitfield, Executive Vice President, International Banking for Scotiabank."This partnership with Thanachart builds on our solid track record of strategic investments in high potential markets like Thailand."

The transaction provides for proportionate Scotiabank representation on the Thanachart board of directors, as well as strong participation in Thanachart Bank management. Scotiabank's agreement also contains provisions to increase its ownership stake to 49 per cent for an equivalent price by December 31, 2007, should legislation allow, subject to a one-year extension and further call rights for a four-year period thereafter.

"The partnership between Thanachart Bank and Scotiabank leverages the strengths of both of our institutions and is strengthened by our shared commitment to the exciting potential of Thailand," said Banterng Tantivit, Chairman of Thanachart Bank.

With a young and growing population of 65 million people - twice the size of Canada - Thailand is a sizeable developing market, with a Gross Domestic Product of US$205 billion that is forecast to grow four-to-five per cent in 2007.

Scotiabank has operated in Thailand since 1981, providing corporate, trade finance and treasury services to local and international companies. In compliance with Thailand's single presence rule, the assets of the Scotiabank branch will be sold to Thanachart Bank and Scotia's Bangkok branch will be closing.

With about Bht257.47 billion (Cdn$9.1 billion) in assets and about 6,000 employees, Thanachart Bank has the fastest growing branch network among the Top 10 banks in Thailand, with 150 branches and 260 automated teller machines (ATMs) across the country. It is also the leading automobile lender in Thailand with a 24 per cent market share for new autos. In addition, the Bank

Scotiabank operates in 10 countries in the Asia-Pacific region, with about 700 employees and 30 branches and offices. The bank primarily offers corporate and commercial products and services, including loans, trade finance, treasury, precious metals, foreign exchange and project and transportation financing, correspondent banking, loan syndications, securities investment and retail mortgage financing in selected countries.

Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With more than 58,000 employees, Scotiabank Group and its affiliates serve approximately 12 million customers in some 50 countries around the world. Scotiabank offers a diverse range of products and services including personal, commercial, corporate and investment banking.

SOURCE: Scotiabank

CONTACT: Krista Pawley

Scotiabank

(416) 866-3703

or krista_pawley(at)scotiacapital.com

or Napaporn Saengkaew

Thanachart Bank

at 02-217-8000

or napaporn(at)thanachart.co.th

--Distributed by AsiaNet ( www.asianetnews.net )--

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