BNP Paribas USA News & Press
May 2, 2007 -

National Bank of Canada and BNP Paribas join forces in hedge fund managed accounts

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Paris, Montreal, New York, May 2, 2007 – National Bank of Canada and BNP Paribas
announced today that they have formed a joint venture offering hedge fund managed
accounts, a vehicle of choice for retail and institutional investors who wish to invest in hedge
funds while controlling operational and market risks. BNP Paribas has acquired a stake in
Innocap Investment Management Inc., a subsidiary of National Bank of Canada, which
specializes in hedge fund managed accounts. National Bank of Canada and BNP Paribas
intend to make Innocap the leading provider of managed accounts for investors worldwide.

Innocap, which has been in operation since 1996, has developed a broad product offering
which provides full transparency and security of investment management, key elements
increasingly demanded by institutional investors. BNP Paribas brings to Innocap its unique
structuring and commercial capacities, together with an international reach and breadth of
distribution capabilities.

Innocap currently advises on over USD 2 billion of assets. It provides active daily monitoring
of alternative funds with complete transparency on the underlying positions and on the
setting of adequate risk limits and investment guidelines. Additionally, it monitors operational
risk, and advises on, along with third party service providers, all the key operations for the

“I’m delighted by the creation of this partnership,” said Yann Gerardin, Global Head of BNP
Paribas Equities and Derivatives. “Innocap offers a powerful platform with full-fledged high-
tech risk monitoring, control, liquidity and transparency to investors. These capabilities will
enable us to create a new generation of structured products, which we expect will have
broad appeal to an international client base.”

This joint venture will allow BNP Paribas, recently awarded “Equity Derivatives House of the
Year” by Risk Magazine, to strengthen its capabilities in structuring fund derivatives products,
while completing its global alternative fund offering.

“With the participation of BNP Paribas, we are bringing Innocap’s world class offering to the
world wide market,” said Ricardo Pascoe, Co-President and Co-CEO of National Bank
Financial Group. “National Bank of Canada wants to be known as the premiere provider of
all-inclusive risk management solutions in Canada and through this partnership, bring these
types of solutions to the international market. Innocap has already attracted a great roster of

fund managers, institutional investors in Canada and internationally, and a strong retail base.
We are confident that Innocap will grow significantly in the years to come.”

“I am proud that Innocap is based on the values of transparency, security, openness and
equality of service for all investors,” said Stéphane Liot, Global Head of BNP Paribas Fund
Derivatives. “Innocap is made up of seasoned and highly talented experts in the field of
hedge fund selection and due diligence, risk monitoring and legal analysis, quantitative
research and portfolio management.”

Martin Gagnon and Denis Parisien, co-CEOs of Innocap added: “BNP Paribas and National
Bank of Canada are complementary, well-established institutions sharing the same business
vision and ambition. We are confident in this joint venture and look forward to its success.”

About Innocap

Innocap is the end result of 11 years of investments in hedge fund strategies for the National Bank of
Canada. Innocap acts as advisor to National Bank and others in connection with alternative
investment activities and is currently investment advisor for over USD 2 billion in hedge fund
mandates. Innocap’s managed account offering increases the user’s control over assets since all
accounts at the prime brokers, future clearers, counterparties and bank accounts are opened in the
name of Innocap’s clients. This structure allows for the complete ownership of positions; no money is
invested directly in the managers’ hedge funds. For more information, go to

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. The 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 of Canada has more than $120 billion in assets and, together with its subsidiaries, employs
16,908 people. The Bank’s securities are listed on the Toronto Stock Exchange (NA: TSX). For more
information, visit the Bank’s website at

About BNP Paribas

BNP Paribas ( is a European leader in banking and financial services, and ranks
among the world’s top 15 banks by market capitalization. It has around 140 000 employees, 110 000
of whom are based in Europe. The group occupies leading positions in three significant fields of
activity: Corporate and Investment Banking, Asset Management & Services and Retail Banking. It is
present in 85 countries and has a strong presence in all the key financial centres. Present throughout
Europe, in all its business lines, France and Italy are its two domestic markets in retail banking. BNP
Paribas enjoys a significant and growing presence in the United States and leading positions in Asia
and in emerging markets.

National Bank of Canada
Denis Dubé, Director – Public Relations, Montreal
Tel.: (514) 394-8644

BNP Paribas
Hélène Delannoy, Corporate Communications, Paris / Tel: 33 1 40 14 65 14

Edwina Frawley, Corporate Communications, New York / Tel 212 841 3719

Celeste Matta Brown, Corporate Communications, London / Tel : +44 (0) 20 7595 4653