Press Release

NATIONAL BANK TO ACQUIRE ALL ASSET-BACKED COMMERCIAL PAPER (ABCP) IN ALTAMIRA MUTUAL FUNDS

Unitholders of the funds will no longer have any exposure to the current ABCP market

TORONTO (August 20, 2007) National Bank of Canada today announced that it would acquire all of the asset-backed commercial paper (“ABCP”) held by Altamira Mutual Funds, against payment in cash, subject to regulatory approvals. As a result, our clients can be reassured that the funds will not hold any ABCP until we are convinced of the quality and liquidity of the paper, whether or not it is issued by a major bank.

Generally, the ABCP held in these funds has a credit rating from DBRS of R-1 High (equivalent to AAA or any other equivalent rating), such that these investments meet the guidelines set out by the various investment policies of these funds.

Recently, however, market conditions have become extremely abnormal. Market liquidity quickly dried up and the appropriateness of holding certain types of ABCP in periods of extreme volatility has been questioned. In this context, National Bank of Canada, mindful of the best interests of the unitholders of the Altamira Mutual Funds, preferred not to have its clients bear the brunt of this uncertainty and therefore decided to initiate the transaction announced today.

The Altamira High-Interest CashPerformer^TM accounts in Canadian dollars (current annual interest rate of 4%) and the Altamira $U.S. High-Interest CashPerformer^TM accounts (current annual rate of interest of 4.75%) are deposits made at National Bank of Canada and are not affected by the current market conditions.*

For more information, please refer to the press release issued by National Bank at the following address: www.nbc.ca

*Rate in effect on August 20, 2007. National Bank is a member of the Canada Deposit Insurance Corporation (CDIC). High-Interest CashPerformer accounts in Canadian dollars are eligible for CDIC deposit insurance in accordance with the rules set out by this organization. Deposits to $U.S. High-Interest CashPerformer accounts are not covered by CDIC deposit insurance.

These measures are subject to the receipt of the regulatory and other approvals, consents and authorizations which, in the opinion of the Bank, Altamira Investment Services and their counsel, are required to implement the announced transaction. These measures are being undertaken despite having no legal or contractual obligation to do so. The Altamira Mutual Funds (the “Funds”) are offered by Altamira Investment Services Inc., a wholly owned subsidiary of National Bank of Canada. Commissions, trailing commissions, management fees and expenses all may be associated with Fund investments. Please read the prospectus of the Funds before investing. The Funds’ securities are not insured by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the Money Market Funds will be able to maintain their net asset value per security at a constant amount or that the full amount of your investment in the Funds will be returned to you. The Funds are not guaranteed, their values change frequently and past performance may not be repeated.

About Altamira
Altamira Investment Services is a leading provider of financial and retirement planning services offering a wide range of investment solutions including mutual funds, savings accounts, principal-protected notes and managed portfolio services. Award-winning client service, product innovation and expert advice define Altamira’s distinctive approach to investment management. The company is headquartered in Toronto with offices across the country, and is a subsidiary of the National Bank of Canada. www.altamira.com

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.

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

Denis Dubé
Director – Public Relations
National Bank of Canada
Tel.: 514-394-8644