Toronto and San Juan, April 30th, 2010 – Scotiabank de Puerto Rico is pleased to announce an acquisition that will enable the Bank to grow decisively in the Puerto Rican market. The Federal Deposit Insurance Corporation (FDIC) has confirmed that Scotiabank de Puerto Rico will acquire the banking operations, including the customer deposits, of R-G Premier Bank of Puerto Rico. The transaction is effective immediately.

Under the terms of the transaction:

Scotiabank acquires US$5.6 billion in assets including US$5.3 billion in loans covered under a loss-sharing agreement with the FDIC.

Through this agreement, the FDIC guarantees 80 per cent of loan losses.

The acquisition also includes US$2.2 billion in deposits. The FDIC is providing additional funding to balance the acquired assets.

This transaction will result in an immediate positive contribution to earnings for Scotiabank Group but is not material to current earnings or capital.

“As we celebrate 100 years of operating in Puerto Rico, we are very pleased to build on our long history of serving our customers, employees and communities here with this acquisition,” said Rick Waugh, Scotiabank President and CEO. “This announcement will increase our market share to approximately nine per cent and is consistent with Scotiabank’s international strategy to grow incrementally to scale in target markets. Scotiabank has an international scope that few banks match, and we look forward to leveraging our strengths and expertise to benefit the ongoing operations of the new bank.”

R-G Premier Bank of Puerto Rico has 29 branches and 61 ATMs and Scotiabank de Puerto Rico has 17 branches and 60 ATMs. The consolidation will begin immediately and Scotiabank is committed to a seamless transition.

“Customers should feel confident that their bank deposits and transactions with Scotiabank are both safe and secure,” said Mr. Waugh. “Scotiabank is one of North America’s premier financial institutions, known for its strength and stability, and has a long history of serving the Puerto Rican market.”

The deposits of R-G Premier Bank customers will continue to be insured by the FDIC up to the insurance limit. Customers can continue to bank at these locations and will be served by the same friendly teams. Customers can continue to access their money by writing checks, using ATMs or using their debit cards. Checks drawn on R-G Premier Bank will continue to be processed and loan customers should continue to make their payments as usual.

“We look forward to welcoming our new R-G Premier Bank customers and employees as we take a larger role in the country’s banking sector,” said Troy Wright, Chief Executive Officer, Scotiabank de Puerto Rico. ”As we bring this bank into the Scotiabank de Puerto Rico family, we begin a new chapter in our long history here and we are excited about the possibilities that today’s announcement brings.

“Tomorrow will be business as usual. Branches that were scheduled to open tomorrow will do so. Customers will see the same friendly faces and can continue using the banking services that they now use. We are committed to leveraging our significant experience in international acquisitions to provide a smooth transition for all of our new and existing customers and employees and as we move through the transition phase, we will look at the best practices of each of the banks to bring our customers exceptional products, lending, services and expertise.”

More information on the transaction can be found in the investor relations presentation at www.scotiabank.com .

Customers looking for more information are invited to:

Visit the Scotiabank de Puerto Rico website at www.scotiabankpr.com/bienvenidos

Call our customer contact centres at:

Scotiabank de Puerto Rico: 787-766-4999 or 1-877-766-4999

R-G Bank 787-766-8123

Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-591-2904. The phone number will be operational this evening until 9:00 p.m., Atlantic Standard Time (AST); on Saturday from 9:00 a.m. to 6:00 p.m., AST; on Sunday from noon to 6:00 p.m. AST; and thereafter from 8:00 a.m. to 8:00 p.m., AST. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/r-gpremier-puertorico.html or http://www.fdic.gov/bank/individual/failed/r-gpremier-puertorico_spanish.html.

The FDIC encourages all bank customers to review more information about the transaction by visiting www.fdicseguro.gov.

Scotiabank has been part of the Caribbean and Central America since 1889. It is now the leading bank in the region, with operations in 27 countries, including affiliates. The Bank has more than 12,000 employees in the region, including affiliates, serving more than two million customers, with 550 branches, kiosks and other offices, plus about 974 ATMs.

Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With close to 68,000 employees, Scotiabank Group and its affiliates serve approximately 14.6 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 more than $507 billion in assets (as at January 31, 2010), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.