LOS ANGELES--(BUSINESS WIRE)--March 24, 2006--To further expandand diversify its successful wealth management business andcapabilities, City National Corporation (NYSE:CYN) today announced adefinitive agreement to acquire Independence Investment LLC fromManulife Financial Corporation.

Independence is a 24-year-old investment firm that managesapproximately $7.5 billion of U.S. equities on behalf of premierinstitutional clients, including corporate, public and Taft-Hartleypension plans, as well as foundations and endowments.

The all-cash transaction is expected to close late in the secondquarter, and City National expects it to be modestly accretive toearnings in 2006. Terms of the deal were not disclosed.

This acquisition is expected to bring City National's assets undermanagement to nearly $27 billion and its assets under management oradministration to more than $47 billion, on a pro-forma basis. Thesetotals do not include $7 billion of assets under management by firmsin which the company holds minority interests. Noninterest income,which is now about 25 percent of City National's total revenue, isexpected to grow to approximately 28 percent when the acquisition iscompleted.

"We're very pleased that Independence will become City National's12th and largest affiliated asset manager," said City National's ChiefExecutive Officer Russell Goldsmith. "This addition will significantlyexpand our outstanding asset management capabilities, particularly inthe institutional market, where we see potential for additionalgrowth. In addition to further diversifying our revenue and increasingnoninterest income, this new alliance will broaden the selection ofequity investment strategies we can offer clients, strengthen ourgrowing network of asset management affiliates and facilitate thecontinued success of Independence.

"Independence is an outstanding firm run by talented, smart andsophisticated professionals who share our commitment to superiorclient service, strong long-term investment performance and thehighest standards of integrity and accountability. We believe the firmis well-positioned for meaningful growth now and in the years ahead,"Goldsmith added.

Independence actively manages U.S. equity investment strategiesacross a variety of market capitalization and investment styleparameters, combining strong fundamental research withstate-of-the-art quantitative analysis. Founded in 1982, Independencebecame part of Manulife Financial Corporation in 2004, when Manulifeacquired John Hancock Financial Services, Inc.

"We're pleased to join forces with City National and ConvergentCapital Management," said Mark Lapman, Independence's president andchief executive officer. "This new partnership will support ourcontinuing efforts to build a world-class, independently managedbusiness. It also will further strengthen our ability to serve clientsand take advantage of growth opportunities in the institutionalmarketplace."

Independence will become an affiliate of Convergent CapitalManagement LLC, the Chicago-based asset management holding companythat City National acquired in 2003. Directly or through ConvergentCapital, City National owns majority interests in nine assetmanagement firms and minority interests in two more. Together, thesefirms manage nearly $18 billion in assets. City National manages anadditional $8.7 billion in assets through its internal investment arm,City National Asset Management.

"We're pleased that Independence will be joining a well-regardedorganization where it can continue to thrive," said Leo de Bever,executive vice president of Manulife Financial Corporation. "We willcontinue to focus on growing our equity, fixed income and alternativeinvestment businesses on a globally integrated basis."

Convergent Capital Management has succeeded both by fostering thegrowth of its affiliates and by continuing to expand through newacquisitions. The company invests in a variety of asset management andrelated firms, including investment counselors, asset managers anddistribution platforms. All of its affiliates operate under their ownnames. They retain complete independence and control of theirinvestment strategies, as well as meaningful equity positions thatpromote entrepreneurship.

Independence will remain headquartered in Boston, Mass., andretain its name and its investment management philosophy anddiscipline. All of the investment firm's senior executives have signedemployment agreements. These executives will have an ownership stakein their company for the first time.

Berkshire Capital Securities LLC assisted Manulife andIndependence with the transaction.

About City National

City National Corporation is a financial services company with$14.6 billion in total assets. Its wholly owned subsidiary, CityNational Bank, is California's Premier Private and Business Bank(R).The bank provides banking, investment and trust services through 55offices, including 12 full-service regional centers, in SouthernCalifornia, the San Francisco Bay Area and New York City. CityNational and its affiliates manage or administer approximately $39.6billion in client trust and investment assets, including more than$19.3 billion under direct management.

Forward-Looking Statements

This news release contains forward-looking statements about thecompany, for which the company claims the protection of the safeharbor provisions contained in the Private Securities LitigationReform Act of 1995.

Forward-looking statements are based on management's knowledge andbelief as of today and include information concerning the company'spossible or assumed future financial condition, and its results ofoperations, business and earnings outlook. These forward-lookingstatements are subject to risks and uncertainties. A number offactors, some of which are beyond the company's ability to control orpredict, could cause future results to differ materially from thosecontemplated by such forward-looking statements. These factors include(1) changes in interest rates, (2) significant changes in banking lawsor regulations, (3) increased competition in the company's markets,(4) other-than-expected credit losses due to real estate cycles orother economic events, (5) earthquake or other natural disastersaffecting the condition of real estate collateral, (6) the effect ofacquisitions and integration of acquired businesses, and (7) theimpact of changes in regulatory, judicial or legislative tax treatmentof business transactions. Management cannot predict at this time theextent of the economic recovery, and a slowing or reversal couldadversely affect our performance in a number of ways, includingdecreased demand for our products and services and increased creditlosses. Likewise, changes in deposit interest rates, among otherthings, could slow the rate of growth or put pressure on currentdeposit levels. Forward-looking statements speak only as of the datethey are made, and the company does not undertake to updateforward-looking statements to reflect circumstances or events thatoccur after the date the statements are made, or to update earningsguidance, including the factors that influence earnings.

For a more complete discussion of these risks and uncertainties,see the company's Annual Report on Form 10-K for the year endedDecember 31, 2005 and particularly the section of Management'sDiscussion and Analysis therein titled "Cautionary Statement forPurposes of the 'Safe Harbor' Provisions of the Private SecuritiesLitigation Reform Act of 1995."


CONTACT: City National Corporation
Christopher J. Carey, 310-888-6777 (Investors)
Chris.Carey@cnb.com
or
Cary Walker, 213-833-4715 (Media)
Cary.Walker@cnb.com
SOURCE: City National Corporation