RBC to acquire Richardson Barr & Co.

    NEW YORK and HOUSTON, June 2 /CNW/ - RBC today announced it has signed an
agreement to acquire Richardson Barr & Co., a leading Houston-based energy
advisory firm specializing in acquisitions and divestitures (A&D) in the
exploration and production (E&P) sector. Completion of the transaction remains
subject to regulatory approvals and is expected to close by third fiscal
quarter 2008. Terms of the transaction were not disclosed.
    A&D firms such as Richardson Barr specialize in assisting public and
private companies in the divestiture of their oil and gas properties. The
proposed transaction will give Richardson Barr the ability to provide its
private company clients a complete range of financing and M&A support, as well
as ready access to RBC's strong public company relationships, solid financial
resources, and expanded product capabilities in equity, high yield, loan
syndications, private placement, and convertibles.
    "We are extremely excited about joining forces with RBC Capital Markets,"
said Scott Richardson, co-founding principal of Richardson Barr & Co. "This
transaction will allow us to provide a much broader range of services to our
clients, backed by the financial strength and stability of RBC. Aligning
ourselves with such a well-respected firm also allows us to maintain our
reputation for integrity, excellence and quality execution."
    The acquisition bolsters RBC's presence in the U.S. investment banking
market and provides added value to clients in the E&P sector through the
combination of RBC's capital markets capabilities and public company
relationships, and Richardson Barr's private company relationships, advisory
services, additional specialized market intelligence and valuation capability,
robust transaction pipeline, and proprietary ideas and insights in the A&D
    "Richardson Barr brings to RBC Capital Markets a strong industry
reputation, experienced engineers, geologists and finance professionals, a
dedicated focus on acquisitions and divestitures in the exploration and
production sector and a terrific cultural fit," said Peter de Vos, RBC Capital
Markets' Head of Investment Banking. "Among other benefits, this partnership
also brings new M&A opportunities to our public market clients by providing
them with private company asset transaction capabilities."
    As part of its mandate, the new entity, to be known as RBC Richardson
Barr, will provide A&D support to RBC's North American energy group in both
the U.S. and Canada over time.
    The transaction is the latest in a series of deals completed by RBC as it
continues to build its presence in the United States and globally. RBC has
announced 10 acquisitions in the U.S. in the past two years, including recent
acquisitions by RBC Capital Markets of Daniels & Associates, the nation's most
active M&A advisor to the cable, telecom, broadcast and Internet services
industries; Carlin Financial Group, a broker-dealer known for its proprietary
trade execution platform; and Seasongood & Mayer, the number one ranked public
finance firm in Ohio.

    About Richardson Barr & Co.

    Co-founded in 2003 by principals Scott Richardson and Steve Barr,
Houston-based Richardson Barr & Co. provides comprehensive A&D services to the
U.S. market. Its advisory services include private oil and gas company sales,
oil and gas asset divestitures and fairness opinions/valuations. Richardson
Barr & Co. focuses on corporate and asset transactions with private and
private equity companies in the U.S.

    About RBC Capital Markets

    RBC Capital Markets is the corporate and investment banking arm of RBC
and is active globally in debt origination, sales and trading, foreign
exchange, infrastructure finance, structured products, metals and mining, and
energy. Its North American platform includes a significant U.S. middle market
investment banking franchise and leading equity, underwriting, sales, trading
and research businesses. Bloomberg ranks the firm as the 12th largest
investment bank globally.
    RBC Capital Markets' Global Energy Group provides advice and raises
capital for the energy and utilities sectors around the world, including
exploration & production, oil field services, pipelines, master limited
partnerships (MLPs), and refining and marketing. The firm provides award
winning energy research that covers more than 200 energy companies around the
world. RBC is one of the most experienced banks in the world in oils sands
financing and is a Nomad on the Alternative Investment Market (AIM).

    About RBC

    Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate
under the master brand name of RBC. We are Canada's largest bank as measured
by assets and market capitalization, and one of North America's leading
diversified financial services companies. We provide personal and commercial
banking, wealth management services, insurance, corporate and investment
banking, and transaction processing services on a global basis. We employ
approximately 70,000 full- and part-time employees who serve more than
15 million personal, business, public sector and institutional clients through
offices in Canada, the U.S. and 36 other countries. For more information,
please visit rbc.com.


    Certain statements contained in this press release may be deemed to be
forward-looking statements under certain securities laws, including the "safe
harbor" provisions of the United States Private Securities Litigation Reform
Act of 1995 and in any applicable Canadian securities legislation. These
forward-looking statements include, but are not limited to statements with
respect to the acquisition of Richardson Barr by RBC Capital Markets.
Forward-looking statements are typically identified by words such as
"believe", "expect", "forecast", "anticipate", "intend", "estimate", "plan"
and "project" and similar expressions of future or conditional verbs such as
"will", "may", "should", "could", or "would".

    Caution Regarding Forward-Looking Statements

    By their very nature, forward-looking statements require us to make
assumptions and are subject to inherent risks and uncertainties, which give
rise to the possibility that our predictions, forecasts, projections,
expectations and other forward-looking information, including statements about
the acquisition of Richardson Barr & Co. by RBC Capital Markets will not be
achieved. We caution readers not to place undue reliance on these statements
as a number of important factors could cause our actual results to differ
materially from the expectations expressed in such forward-looking statements.
These factors include, but are not limited to the possibility that the
proposed acquisition does not close when expected or at all because required
regulatory or other approvals are not received or other conditions to the
closing are not satisfied on a timely basis or at all, that RBC Capital
Markets and Richardson Barr may be required to modify the terms and conditions
of the proposed transaction to achieve regulatory approval, or that the
anticipated benefits of the transaction are not realized as a result of such
things as the strength of the economy and competitive factors in the areas
where Richardson Barr does business; the impact of changes in the laws and
regulations regulating financial services and enforcement thereof (including
banking, insurance and securities); judicial judgments and legal proceedings;
RBC Capital Markets ability to complete the acquisition of Richardson Barr and
to integrate it with RBC Capital Markets successfully; reputational risks, and
other factors that may affect future results of RBC and Richardson Barr,
including timely development and introduction of new products and services,
changes in tax laws, and technological and regulatory changes. We caution that
the foregoing list of important factors is not exhaustive. Additional
information about these and other factors can be found in Royal Bank of
Canada's 2007 Annual Report.
    Except as required by law, RBC Capital Markets, Royal Bank of Canada and
Richardson Barr assume no obligation to update the forward-looking statements
contained in this press release.

For further information:

For further information: U.S.: Kevin Foster, RBC, (212) 428-6902,
kevin.foster@rbc.com; Loretta Healy, The Hubbell Group, (781) 878-8882,
lhealy@hubbellgroup.com; Canada: Beja Rodeck, RBC, (416) 974-5506,
beja.rodeck@rbc.com; Investor Relations: Marcia Moffat, RBC, (416) 955-7803,
marcia.moffat@rbc.com; Amy Cairncross, RBC, (416) 955-7809,
amy.cairncross@rbc.com; For general investor relations information please
visit: www.rbc.com/investorrelations

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