/NOT FOR RELEASE OR DISSEMINATION IN THE UNITED STATES/

TORONTO, Aug. 27 /CNW/ - Scotiabank today announced that as a result of strong investor demand for its domestic public offering of non-cumulative 5-year rate reset preferred shares Series 22 (the "Preferred Shares Series 22") the size of the offering has been increased to 12 million shares. The gross proceeds of the offering will now be $300 million.

The offering was made through a syndicate of investment dealers led by Scotia Capital Inc. Closing is expected to occur on or after September 9, 2008. This domestic public offering is part of Scotiabank's ongoing and proactive management of its Tier 1 capital structure.

The Preferred Shares Series 22 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 60,000 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 $462 billion in assets (as at July 31, 2008), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.

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