Canadian Western Bank To Acquire Aetna Trust.

EDMONTON, Alberta--(BUSINESS WIRE)--Jan. 26, 1996--CANADIAN WESTERN BANK (Alberta Stock Exchange: CWB) Canadian Western Bank today announced, subject to board and regulatory approvals, an agreement whereby the Bank will acquire full ownership of Aetna Trust Company of Vancouver. Purchase price of $22.3 million is a slight premium to book value.

The Bank has also announced that it has engaged Nesbitt Burns to raise the required capital to assist in financing the purchase. Closing is anticipated by mid-March, 1996.

Larry Pollock, President and C.E.O. of the Bank, described Aetna Trust as profitable, well managed and an ideal strategic fit with Canadian Western Bank. He noted that the acquisition fulfills the Bank's long term strategic plan to acquire a trust license. One of the most appealing aspects of the combination, Mr. Pollock noted, is that the Aetna Trust operations to be acquired are primarily in Western Canada, principally in British Columbia, thus enabling the Bank to maintain its western geographic focus.

The major synergies between the Bank and the Trust derive from the combination of their respective services and client bases, which, for the most part, are complementary to each other. In addition to mortgage assets of some $240 million after the acquisition, Aetna Trust also has in excess of $300 million in assets under administration in self-administered RRSP's and RRIF's in more than 6,000 accounts. As a result, the Bank will realize the benefit of acquiring a significant quantity of stable fee income immediately, while allowing the Bank the opportunity to expand self-administered RRSP, RRIF, trust and other services to its clients.

Mr. Pollock noted that the fiduciary powers of the Trust will, in addition to permitting a broader range of services, bring in-house some services which currently are being outsourced.

Once the acquisition is complete, the Bank will seek to create operational efficiencies in combining the bank and trust services where market focus and expertise overlap. However, the two firms will continue to operate as separate and distinct entities. Application will be made to change the Trust's name to Canadian Western Trust.

Canadian Western Bank is the only Schedule I chartered bank with its headquarters and principal operations in Western Canada. The Bank specializes in commercial loans, commercial real estate financing, equipment loans and leasing to businesses throughout Western Canada. Services to individuals are also provided through a competitive range of mortgages, consumer loans, deposit products and other retail banking services.

The common shares of Canadian Western Bank are listed on each of the Toronto, Vancouver and Alberta Stock Exchanges under the trading symbol "CWB".

CONTACT: Canadian Western Bank

Larry M. Pollock, President and Chief Executive Officer

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