Cayman National

Cayman National Announces Normal Course Issuer Bid

7 January 2008

Cayman National Corporation Ltd. today announced that a Notice of Intention to make a Normal Course Issuer Bid has been filed with and accepted by the Cayman Islands Stock Exchange (“CSX”). Under its normal course issuer bid, CNC may purchase up to 840,000 of its common shares, representing approximately 2% of the shares fully paid, issued, and outstanding. CNC will cancel any common shares purchased pursuant to the normal course issuer bid. The purchases may commence on January 7, 2008 and will terminate on September 30, 2008, or on such earlier date as CNC may complete its purchases pursuant to the Notice of Intention as filed. Purchases will be made on the open market by CNC through Cayman National Securities Ltd. using the facilities of the CSX. The prices that CNC will pay for any purchased common shares will be the market price of such shares on the CSX at the time of acquisition. CNC will make no purchases of common shares other than open-market purchases.

CNC makes its normal course issuer bid as it believes that its common shares are an attractive investment and that normal course purchases represent an excellent opportunity to enhance value for shareholders.