/NOT FOR RELEASE OR DISSEMINATION IN THE UNITED STATES/

    TORONTO, May 18 /CNW/ - Scotiabank today announced its intention to
redeem all of the $500 million 6.25 per cent Debentures due 2012 on July 16,
2007 at par plus accrued and unpaid interest. Formal notice will be delivered
to the debenture holders in accordance with the debenture conditions.
    The redemption is part of the Bank's ongoing management of its Tier 2
capital.

    Scotiabank is one of North America's premier financial institutions and
Canada's most international bank. With close to 57,000 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.
With $396 billion in assets (as at January 31, 2007), Scotiabank trades on the
Toronto (BNS) and New York (BNS) Stock Exchanges. For more information please
visit www.scotiabank.com.

    This press release does not constitute an offer to purchase securities in
the United States. The Debentures have not been registered under the United
States Securities Act of 1933, as amended.

    %SEDAR: 00001289E