/NOT FOR RELEASE OR DISSEMINATION IN THE UNITED STATES/

    TORONTO, May 27 /CNW/ - Scotiabank today announced a domestic public
offering of 12 million, non-cumulative 5-year rate reset preferred shares
Series 20 (the "Preferred Shares Series 20") at a price of $25.00 per share,
for an aggregate amount of $300 million.
    Holders of Preferred Shares Series 20 will be entitled to receive a
non-cumulative quarterly fixed dividend for the initial period ending October
25, 2013 of 5.00% per annum, as and when declared by the Board of Directors of
Scotiabank. Thereafter, the dividend rate will reset every five years at a
level of 170 basis points over the 5-year Canada bond yield. Shareholders
will, subject to certain conditions, have the option to convert all or any
part of their shares to non-cumulative floating rate preferred shares Series
21 (the "Preferred Shares Series 21") of Scotiabank on October 26, 2013 and on
October 26 every five years thereafter. Holders of the Preferred Shares Series
21 will be entitled to receive a non-cumulative quarterly floating dividend
equal to the 3-month Government of Canada Treasury Bill yield plus 170 basis
points, as and when declared by the Board of Directors of Scotiabank.
    The Bank has agreed to sell the Preferred Shares Series 20 to a syndicate
of underwriters led by Scotia Capital Inc. on a bought deal basis. The Bank
has granted to the underwriters an option to purchase up to an additional $50
million of the Preferred Shares Series 20 at any time up to 48 hours before
closing.
    Closing is expected to occur on or after June 10, 2008. This domestic
public offering is part of Scotiabank's ongoing and proactive management of
its Tier 1 capital structure.
    The Preferred Shares Series 20 and Preferred Shares Series 21 have not
been and will not be registered under the United States Securities Act of
1933, as amended, or under any state securities laws, and may not be offered,
sold, directly or indirectly, or delivered within the United States of America
and its territories and possessions or to, or for the account or benefit of,
United States persons except in certain transactions exempt from the
registration requirements of such Act. This release does not constitute an
offer to sell or a solicitation to buy such securities in the United States.

    Scotiabank is one of North America's premier financial institutions and
Canada's most international bank. With more than 60,000 employees, Scotiabank
Group and its affiliates serve approximately 12.5 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 $453 billion in assets (as at April 30, 2008), Scotiabank trades on the
Toronto (BNS) and New York Exchanges (BNS). For more information please visit
www.scotiabank.com.

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