Canadian Western Bank invests in Washington State Bank.

EDMONTON, ALBERTA--(BUSINESS WIRE)--March 18, 1997-- Canadian Western Ban (TSE;VSE;ASE CWB) Canadian Western Bank today announced that it has completed a small but important strategic investment, including Board representation, in the newly formed Bank Northwest, of Bellingham, Washington. Canadian Western Bank has purchased a 5 percent common share interest in Bank Northwest as part of its Initial Public Offering, making Canadian Western Bank one of the largest shareholders in the new Bank.

Bank Northwest was formed as a Washington State chartered bank to offer full service banking to businesses and residents within its primary trading area of Bellingham and surrounding Whatcom County, an area which in the opinion of the founders is significantly underbanked.

Douglas R. Dalgetty, Executive Vice President of Canadian Western Bank and Canadian Western Bank's nominee to the Board of Bank Northwest, said the participation in Bank Northwest will provide at least three significant benefits: (i) it is expected to be an excellent long term stand-alone investment in terms of growth in value; (ii) it is an excellent vehicle for the referral of cross- border business, the potential for which is excellent given the 12,000 Canadian property owners in the Bellingham area; and (iii) it provides Canadian Western Bank with a base from which to expand in the U.S. in the future. Mr. Dalgetty noted that the opportunity to provide cross-border services is particularly attractive to Canadian Western Bank's retail and commercial customers in its branches at Victoria, Vancouver, Kelowna, Calgary, Lethbridge, Regina and Winnipeg.

Both banks have recognized the synergistic value of having a vehicle to refer cross-border business and both have agreed to work co-operatively to realize these values for their customers. The following benefits to Canadian Western Bank also apply to Bank Northwest in terms of C$ accounts:

- US$ deposits of Canadian clients can be insured by FDIC;

- Canadian clients can access U.S. chequing, savings, and

safe deposit boxes;

- Canadian clients can access US$ Visa and Mastercard

accounts;

- Commercial loans can be facilitated to businesses

active in both countries;

- Canadian clients can access US$ mortgages;

- The Bank can access US$ loan funding.

Mr. Dalgetty noted that the founders and management of Bank Northwest have a culture similar to that of Canadian Western Bank and that a harmonious working arrangement has already been established.

Canadian Western Bank operates through 21 branch locations and is the only Schedule I chartered bank with its headquarters and principal operations in Western Canada. The Bank specializes in commercial loans, energy loans, commercial real estate financing, equipment loans and leasing to businesses throughout Western Canada. Services to individuals are provided through a competitive range of mortgages, consumer loans, deposit products and other retail banking services. Through Canadian Western Trust Company, it also offers self-administered RRSP, RRIF, trust and other fiduciary services as well as residential and commercial mortgage lending.

The common shares of Canadian Western Bank are listed on each of the Toronto, Vancouver and Alberta Stock Exchanges under the trading symbol "CWB". The Bank's convertible debentures also trade on the TSE under the symbol "CWB.DB".

CONTACT: Canadian Western Bank

Larry Pollock, 403/423-8888

or

Canadian Western Bank

Douglas R. Dalgetty, 604/669-0081

or

Hume, Kieran Inc.

Jon W. Kieran, 416/868-1079

or

Hume, Kieran Inc.

Cathy Hume, 416/868-1079