First BanCorp Receives Approval for $94.8 Million Private Placement of Common Stock with Scotiabank

SAN JUAN, Puerto Rico, Aug. 9 /PRNewswire-FirstCall/ -- First BanCorp today announced the approval by the Federal Reserve Board of the private placement offering with Scotiabank (TSX, NYSE: BNS), issuing approximately 9.250 million shares of its common stock to Scotiabank at $10.25 per share, for a total purchase price of approximately $94.8 million. After the investment, Scotiabank will hold 10% of First BanCorp's then outstanding common shares. The funding of this transaction is expected in 15 to 20 days.

"We are pleased to officially welcome Scotiabank, an internationally recognized leading financial institution as a shareholder of First BanCorp. This investment signals a vote of confidence in the financial strength of First BanCorp and the value of the FirstBank franchise," said Luis Beauchamp, President and Chief Executive Officer of First BanCorp. "This private placement further strengthens First BanCorp's capital position and provides additional liquidity with which to implement our go-forward strategy and better serve our customers."

UBS Investment Bank served as placement agent and acted as First BanCorp's financial advisor in the offering.

About First BanCorp

First BanCorp is the parent corporation of FirstBank Puerto Rico, a state- chartered commercial bank with operations in Puerto Rico, the Virgin Islands and Florida; of FirstBank Insurance Agency; and of Ponce General Corporation. First BanCorp, FirstBank Puerto Rico and FirstBank Florida, formerly Unibank, the thrift subsidiary of Ponce General, all operate within U.S. banking laws and regulations. The Corporation operates a total of 153 financial services facilities throughout Puerto Rico, the U.S. and British Virgin Islands, and Florida. Among the subsidiaries of FirstBank Puerto Rico are Money Express, a finance company; First Leasing and Car Rental, a car and truck rental leasing company; and FirstMortgage, a mortgage origination company. In the U.S. Virgin Islands, FirstBank operates First Insurance VI, an insurance agency and First Express, a small loan company. First BanCorp's common and preferred shares trade on the New York Stock Exchange under the symbols FBP, FBPPrA, FBPPrB, FBPPrC, FBPPrD and FBPPrE.

About Scotiabank

Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With close to 57,000 employees, Scotiabank and its affiliates serve approximately 12 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 $379 billion in assets (as of October 31, 2006), Scotiabank trades on the Toronto (BNS) and New York (BNS) Stock Exchanges. For more information please visit http://www.scotiabank.com/.

Safe Harbor

This press release may contain "forward-looking statements" concerning the Corporation's future economic performance. The words or phrases "expect," "anticipate," "look forward," "should," "believes" and similar expressions are meant to identify "forward-looking statements" within the meaning of the Private Securities Litigation reform Act of 1995.

The Corporation wishes to caution readers not to place undue reliance on any such "forward-looking statements," which speak only as of the date made, and to advise readers that various factors, including the Corporation's ability to file the required quarterly information so that the Corporation can return to compliance with the reporting requirements under the Securities Exchange Act of 1934, the completion of the sale of shares of common stock to Scotiabank, the ability to finalize the settlement of the shareholder litigation, interest rate risk relating to the secured loans to Doral and R&G Financial, the continued repayment by Doral and R&G Financial of their outstanding loans, the impact on net income of the reduction in net interest income resulting from the repayment of a significant amount of the commercial loans to Doral, the impact of the consent orders on the Corporation's future operations and results, the Corporation's ability to continue to implement the terms of the consent orders, FirstBank's ability to issue brokered certificates of deposit, its liquidity, the ability to fund operations, changes in the interest rate environment, regional and national economic conditions, competitive and regulatory factors and legislative changes, could affect the Corporation's financial performance and could cause the Corporation's actual results for future periods to differ materially from those anticipated or projected. The Corporation does not undertake, and specifically disclaims any obligation, to update any "forward-looking statements" to reflect occurrences or unanticipated events or circumstances after the date of such statements.