Royal Bank of Canada to acquire American Guaranty & Trust

7 September 2006

TORONTO and MONTPELIER, VT., September 6, 2006 — Royal Bank of Canada (RY on TSX and NYSE) and the National Life Group today announced that Royal Bank of Canada (RBC) will acquire American Guaranty & Trust (AG&T), a member of the National Life Group, pending regulatory approvals and other customary conditions. The terms of the transaction were not disclosed.

“The acquisition of AG&T allows RBC to provide U.S. trust solutions to high net worth clients, complementing our well-established international trust capability and rounding out our wealth management offering in North America and abroad,” said Michael Lagopoulos, President and CEO, RBC Global Private Banking.

The acquisition, which is not material to RBC, is expected to be completed by September 29, 2006, pending regulatory approvals. With more than 30 employees based in Wilmington, Delaware, AG&T currently administers more than 1,000 personal trusts and holds more than $1.3 billion in trust and investment accounts for its clients.

As a result of the deal, Lee Cheney, currently AG&T President and CEO, will become the head of RBC’s U.S. trust business, reporting to Michael Moodie, head of RBC Global Private Banking in the U.S. and Caribbean.

“This acquisition builds on our growing presence in key U.S. markets and allows RBC to better deliver domestic, international or integrated planning solutions to our clients depending on what’s best for their needs,” Moodie said.

“We are very pleased with the prospects of this change and look forward to continuing our record of superb trust services to our clientele,” Cheney said. “We also believe that RBC presents us with exceptional growth opportunities.”

The acquisition extends RBC Financial Group’s growing U.S. financial services platform. “This deal demonstrates RBC’s commitment to expanding in global high growth businesses where we have significant competitive advantages. It also reinforces RBC’s commitment to strategically expand its businesses in the U.S.,” added Lagopoulos.

“We have been proud of our association with American Guaranty & Trust over the past decade and are pleased that our advisors and agents will continue to have access to their well established and highly respected trust capabilities,” said Ken Ehinger, Senior Vice President of National Life Insurance Company. “But we have concluded that our own interests – and those of our clients – are best served by focusing on the development, sale and service of life insurance, annuities and mutual funds. Our success will continue to be built around those core businesses.”

In addition to Global Private Banking offices in New York, Miami, San Francisco and Houston, RBC’s U.S. operations include RBC Centura, a regional bank in the U.S. Southeast; RBC Dain Rauscher, a full-service securities firm; RBC Insurance, a national provider of insurance protection and asset accumulation solutions; RBC Capital Markets, with corporate and investment banking operations in New York, Minneapolis, San Francisco, Houston and other select U.S. locations; and RBC Builder Finance, a Houston-based provider of construction loans with national reach.

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