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RBC announces new series of Principal Protected S&P 500® index-linked notes


RBC today announced that it will file a Preliminary Pricing Supplement on November 14, 2007, which relates to its Principal Protected Absolute Return Notes Linked to the S&P 500® Index, due May 29, 2009 (the “Absolute Return Notes”). RBC Capital Markets is the underwriter of the offering.

The Absolute Return Notes, which will be issued under RBC’s Senior Global Medium-Term Notes, Series C, Program, are 100% principal protected and provide a return linked to the absolute value of the performance (positive or negative) of the S&P 500® Index (the “underlying index”) between the pricing date, which will be November 20, 2007, and the final valuation date, which will be May 26, 2009.

The Absolute Return Notes provide investors an opportunity to gain market-neutral exposure to the performance of the S&P 500® Index. This is accomplished by providing a return linked to the movement (whether positive or negative) of the underlying index, so long as the underlying index does not close above the upper barrier or below the lower barrier on any day up to and including the final valuation date.

The upper barrier is [122-126]% multiplied by the initial underlying index level. The lower barrier is [74-78]% of the final underlying index level. The return on the notes is capped at [122-126]% multiplied by the principal amount. The upper and lower barriers, and the cap on the return on the notes, will be determined on the pricing date. If, during the term of the note, the closing level of the underlying index is greater than the upper barrier or less than the lower barrier, then, at maturity, investors will not receive any interest on the note but, rather, receive only the principal amount invested. Otherwise, at maturity investors will receive their principal plus a return equal to the absolute value of the performance of the S&P 500® Index from the trade date to, and including, the final valuation date. The Absolute Return Notes will not pay a coupon.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state, province or other jurisdiction.

The Preliminary Pricing Supplement relating to the Absolute Return Notes, as well as the product prospectus supplement, the base prospectus and the Medium-Term Notes prospectus supplement which relate to it, are available at the website of the U.S. Securities and Exchange Commission, They are also available from RBC Capital Markets Corporation, One Liberty Plaza, New York NY 10006, and RBC Dain Rauscher Inc., a selling group member.

“Standard & Poor’s®,” “Standard & Poor’s 500,” “S&P 500®” and “S&P” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by RBC. The notes have not been passed on by S&P as to their legality or suitability. The notes are not issued, endorsed, sold, or promoted by S&P. S&P MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO THE NOTES.


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