/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES/

TORONTO, May 24, 2013 /CNW/ - Scotiabank (BNS: TSX, NYSE) today announced that Scotiabank Capital Trust, an open-end trust, intends to redeem all issued and outstanding Scotiabank Trust Securities Series 2003-1 (Scotia BaTS II) on June 30, 2013.  The redemption price per share will be equal to $1,000.00 per Scotia BaTS II plus unpaid indicated distributions to the June 30, 2013 redemption date.  Formal notice will be delivered to the holders of the Scotia BaTS II in accordance with the terms thereof.

In accordance with the terms of the Declaration of Trust governing Scotiabank Capital Trust, an amount equal to the redemption proceeds has been deposited in trust for the holders of Scotia BaTS II, which deposit constitutes payment and satisfaction by Scotiabank Capital Trust of the redemption proceeds payable on the Scotia BaTS II.  As a result, the rights of a holder of the Scotia BaTS II are limited to receiving, on June 30, 2013, the proportion of the amount so deposited applicable to such holder's Scotia BaTS II, without any interest thereon.

The redemption of the Scotia BaTS II will be financed out of the general funds of Scotiabank Capital Trust.

Scotiabank is a leading multinational financial services provider and Canada's most international bank. With more than 82,000 employees, Scotiabank and its affiliates serve some 19 million customers in more than 55 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. In December 2012, Scotiabank became the first Canadian bank to be named Global Bank of the Year and Bank of the Year in the Americas by The Banker magazine, a Financial Times publication. With assets of $736 billion (as at January 31, 2013), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.

SOURCE: Scotiabank