Royal Bank of Canada to issue 0% buffered notes linked to PHLX Drug Sector Index

By Angela McDaniels

Seattle, April 6 - Royal Bank of Canada plans to sell an issue of 0% buffered notes due April 30, 2008 linked to the PHLX Drug Sector Index, according to a preliminary pricing supplement filed with the Securities and Exchange Commission.

Payout at maturity will be based on the final level of the index on April 25, 2008:

• If the final index level is greater than the initial index level, payout will be par plus the return on the index, capped at 20%;

• If the index level declines by 15% or less, payout is par;

• Otherwise, investors will lose 1.1765% for every percentage point the index level declines by more than 15%.

RBC Capital Markets Corp. will be agent for the offering, and JPMorgan Chase Bank NA will be calculation agent.

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