/NOT FOR RELEASE OR DISSEMINATION IN THE UNITED STATES/

    TORONTO, Oct. 24 /CNW/ - Scotiabank today announced that Scotiabank
Subordinated Notes Trust, a closed-end wholly owned trust, will issue
$1 billion of Trust Subordinated Notes (the "Notes"). The Notes will qualify
as subordinated debt of the Bank for regulatory purposes and will be fully and
unconditionally guaranteed by the Bank on a subordinated basis.
    The Notes will bear interest at a fixed rate of 5.25 per cent per annum
(paid semi-annually in arrears) until November 1, 2012, and at the three-month
Banker's Acceptance Rate plus 1.00 per cent thereafter until their maturity on
November 1, 2017 (paid quarterly in arrears). The issue was priced at $99.995
with a yield to November 1, 2012 of 5.251 per cent. The Notes are redeemable
on and after November 1, 2012 at par.
    Closing is expected to occur on October 31, 2007. This domestic public
offering is part of Scotiabank's ongoing and proactive management of its
capital structure.
    The offering was made through a group of agents led by Scotia Capital
Inc.
    The Notes have not been and will not be registered under the United
States Securities Act of 1933 (the "Act"), as amended, or under any state
securities laws and, subject to certain exceptions, may not be offered, sold,
or delivered directly or indirectly, within the United States of America, its
territories and possessions or to, or for the account or benefit of, U.S.
persons. This release does not constitute an offer to sell or a solicitation
to buy the Notes in the United States.

    Scotiabank is one of North America's premier financial institutions and
Canada's most international bank. With almost 60,000 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 $408 billion in assets (as at July 31, 2007), Scotiabank trades on the
Toronto (BNS) and New York Exchanges (BNS). For more information please visit
www.scotiabank.com.

    %SEDAR: 00001289EF