/NOT FOR RELEASE OR DISSEMINATION IN THE UNITED STATES/

    TORONTO, Jan. 8 /CNW/ - Scotiabank today announced that, as a result of
strong investor demand for its domestic public offering of non-cumulative
6.25% 5-year rate reset preferred shares Series 26 (the "Preferred Shares
Series 26"), the size of the offering has been increased to 10 million shares.
The gross proceeds of the offering will now be $250 million and is expected to
close on or after January 21, 2009.

    The offering was made through a syndicate of investment dealers 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 3 million Preferred
Shares Series 26 at closing, which option is exercisable by the underwriters
any time up to 48 hours before closing.

    This domestic public offering is part of Scotiabank's ongoing and
proactive management of its Tier 1 capital structure.

    The Preferred Shares Series 26 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 69,000 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 $508 billion in assets (as at October 31, 2008), Scotiabank trades on the
Toronto (BNS) and New York Exchanges (BNS). For more information please visit
www.scotiabank.com.

    %SEDAR: 00001289EF