National Bank to acquire all asset-backed commercial paper (ABCP) in Altamira Mutual Funds

    Unitholders of the funds will no longer have any exposure to the current
    ABCP market

    TORONTO, Aug. 20 /CNW/ - National Bank of Canada today announced that it
would acquire all of the asset-backed commercial paper ("ABCP") held by
Altamira Mutual Funds, against payment in cash, subject to regulatory
approvals. As a result, our clients can be reassured that the funds will not
hold any ABCP until we are convinced of the quality and liquidity of the
paper, whether or not it is issued by a major bank.
    Generally, the ABCP held in these funds has a credit rating from DBRS of
R-1 High (equivalent to AAA or any other equivalent rating), such that these
investments meet the guidelines set out by the various investment policies of
these funds.
    Recently, however, market conditions have become extremely abnormal.
Market liquidity quickly dried up and the appropriateness of holding certain
types of ABCP in periods of extreme volatility has been questioned. In this
context, National Bank of Canada, mindful of the best interests of the
unitholders of the Altamira Mutual Funds, preferred not to have its clients
bear the brunt of this uncertainty and therefore decided to initiate the
transaction announced today.
    The Altamira High-Interest CashPerformer(TM) accounts in Canadian dollars
(current annual interest rate of 4%) and the Altamira $U.S. High-Interest
CashPerformer(TM) accounts (current annual rate of interest of 4.75%) are
deposits made at National Bank of Canada and are not affected by the current
market conditions.(*)

    For more information, please refer to the press release issued by
    National Bank at the following address:

    (*) Rate in effect on August 20, 2007. National Bank is a member of the
    Canada Deposit Insurance Corporation (CDIC). High-Interest CashPerformer
    accounts in Canadian dollars are eligible for CDIC deposit insurance in
    accordance with the rules set out by this organization. Deposits to $U.S.
    High-Interest CashPerformer accounts are not covered by CDIC deposit

    These measures are subject to the receipt of the regulatory and other
approvals, consents and authorizations which, in the opinion of the Bank,
Altamira Investment Services and their counsel, are required to implement the
announced transaction. These measures are being undertaken despite having no
legal or contractual obligation to do so. The Altamira Mutual Funds (the
"Funds") are offered by Altamira Investment Services Inc., a wholly owned
subsidiary of National Bank of Canada. Commissions, trailing commissions,
management fees and expenses all may be associated with Fund investments.
Please read the prospectus of the Funds before investing. The Funds'
securities are not insured by the Canada Deposit Insurance Corporation or by
any other government deposit insurer. There can be no assurances that the
Money Market Funds will be able to maintain their net asset value per security
at a constant amount or that the full amount of your investment in the Funds
will be returned to you. The Funds are not guaranteed, their values change
frequently and past performance may not be repeated.

    About Altamira

    Altamira Investment Services is a leading provider of financial and
retirement planning services offering a wide range of investment solutions
including mutual funds, savings accounts, principal-protected notes and
managed portfolio services. Award-winning client service, product innovation
and expert advice define Altamira's distinctive approach to investment
management. The company is headquartered in Toronto with offices across the
country, and is a subsidiary of the National Bank of Canada.

    About National Bank of Canada

    National Bank of Canada is an integrated group which provides
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. National Bank
offers a full array of banking services, including retail, corporate and
investment banking. 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.
National Bank has more than $130 billion in assets and, together with its
subsidiaries, employs 16,852 people. The Bank's securities are listed on the
Toronto Stock Exchange (NA). For more information, visit the Bank's website at

For further information:

For further information: (The telephone number provided below is for the
exclusive use of journalists and other media representative): Denis Dubé,
Director - Public Relations, National Bank of Canada, Tel.: (514) 394-8644

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