Offering of $300,000,000 Medium Term Notes Series 2 (subordinated indebtedness)

National Bank of Canada (the "Bank") announces that it has entered into an agreement with a syndicate of agents regarding the distribution in Canada, on an agency basis, of $300,000,000 principal amount of Medium Term Notes Series 2 (the "Notes"). The purpose of the offering is to enlarge the Bank's Tier 2B capital base. The Bank will promptly file with the securities commission or other similar authority of each of the provinces in Canada and with the Superintendent of Financial Institutions Canada a pricing supplement regarding the Notes. It is expected that the Notes will be ready for delivery in book entry form through the facilities of The Canadian Depository for Securities Limited on or about January 22, 2001.

The syndicate of agents is led by National Bank Financial Inc. and is comprised of BMO  Nesbitt Burns Inc., Scotia Capital Inc., RBC Dominion Securities Inc., CIBC World Markets Inc., Merrill Lynch Canada Inc., TD Securities Inc., Laurentian Bank Securities Inc., Casgrain & Company Limited and HSBC Securities (Canada) Inc.

National Bank of Canada is an integrated group whose mission is to provide comprehensive financial services to consumers, small and medium sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. The National Bank offers a full array of banking services, including all the investment banking services required by large corporations. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. The National Bank has assets of over $75 billion and, together with its subsidiaries, it employs over 16,600 people. The Bank's shares are listed on the Toronto Stock Exchange.