/NOT FOR RELEASE OR DISSEMINATION IN THE UNITED STATES/

    TORONTO, June 10 /CNW/ - Scotiabank today announced that it has completed
the domestic offering of 14 million, non-cumulative 5-year rate reset
preferred shares Series 20 (the "Preferred Shares Series 20") including the
full exercise of the underwriters' option, at a price of $25.00 per share. The
gross proceeds of the offering were $350 million.
    The offering was made through a syndicate of investment dealers led by
Scotia Capital Inc. Following the successful sale of the initially announced
12 million Preferred Shares Series 20, the syndicate fully exercised the
underwriters' option to purchase an additional 2 million shares. The Preferred
Shares Series 20 commence trading on the Toronto Stock Exchange today under
the symbol BNS.PR.Q.
    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. 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 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.

    %SEDAR: 00001289E