**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**Form      10-Q**

| x      | QUARTERLY                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                  ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH                  31, 2007 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                     |
|   | OR                                                                                                                                                                                       |

| o | TRANSITION                      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES                       EXCHANGE                      ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____________ TO                      _____________ |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Commission      file number **
**1-14103**

**(Exact      name of registrant as specified in its charter)**

| Maryland                                           | 52-2063921                             |
|----------------------------------------------------|----------------------------------------|
| **(State                or other jurisdiction of** | **(I.R.S.                Employer**    |
| **incorporation                or organization)**  | **Identification                No.)** |

| 65                East 55th Street, New York, New York      | 10022                         |
|-------------------------------------------------------------|-------------------------------|
| **(Address                of principal executive offices)** | **(Zip                Code)** |

**(Registrant’s      telephone number, including area code)**

**(N/A)**

** **
**(Former      name, former address and former fiscal year, if changed since last      report)**

| **Class**                                | **Outstanding                at May 15, 2007** |
|------------------------------------------|------------------------------------------------|
| Common                Stock              |                                           |
| par                value $0.01 per share | 100                                            |

----

|                         |                                                                                                          |   | Page   |
|-------------------------|----------------------------------------------------------------------------------------------------------|--------|--------|
| Part                I.  | FINANCIAL                INFORMATION:                                                                    |   |   |
|                    |                                                                                                     |   |   |
|                    | Item                1(a). Financial Statements                                                           |   |   |
|                    |                                                                                                     |   |   |
|                    | Balance                Sheets -                                                                          |   |   |
|                    | As                of March 31, 2007 and December 31, 2006                                                |   | 1      |
|                    |                                                                                                     |   |   |
|                    | Statements                of Income -                                                                    |   |   |
|                    | For                the three-month periods ended March 31, 2007 and 2006                                 |   | 2      |
|                    |                                                                                                     |   |   |
|                    | Statements                of Stockholders’ Equity -                                                |   |   |
|                    | For                the three-month periods ended March 31, 2007 and 2006                                 |   | 3      |
|                    |                                                                                                     |   |   |
|                    | Statements                of Cash Flows -                                                                |   |   |
|                    | For                the three-month periods ended March 31, 2007 and 2006                                 |   | 4      |
|                    |                                                                                                     |   |   |
|                    | Notes                to the financial statements                                                         |   | 5      |
|                    |                                                                                                     |   |   |
|                    | Item                1(b). National Bank of Canada Summarized Financial                Statements         |   | 8      |
|                    |                                                                                                     |   |   |
|                    | Item                2. Management’s Discussion and Analysis of Financial                Condition  |   | 9      |
|                    | and                Results of Operations                                                                 |   |   |
|                    |                                                                                                     |   |   |
|                         | Item                    3. Quantitative and Qualitative Disclosures About Market                    Risk |   | 11     |
|                    |                                                                                                     |   |   |
|                         | Item                  4. Controls and Procedures                                                         |   | 11     |
|                    |                                                                                                     |   |   |
| Part                II. | OTHER                INFORMATION :                                                                       |   |   |
|                    |                                                                                                     |   |   |
|                    | Item                5. Other Information                                                                 |   | 12     |
|                    |                                                                                                     |   |   |
|                    | Item                6. Exhibits                                                                          |   | 12     |

----

----

***NB        CAPITAL CORPORATION***

***BALANCE        SHEETS***

|                                                              |   | **March                    31,** |        |                            |   |
|-------------------------------------------------------------------|--------|----------------------------------|-------------|---------------------------------|--------|
|                                                              |   | **2007**                         |        | December                    31, |   |
| ***(                    in thousand of US dollars )***            |   | **(Unaudited)**                  |        | 2006                            |   |
|                                                              |   |                             |        |                            |   |
|                                                              |   | **$**                            |        | $                               |   |
| **Assets**                                                        |   |                             |        |                            |   |
|                                                              |   |                             |        |                            |   |
| Current                    Assets                                 |   |                             |        |                            |   |   |   |
| Cash                    and cash equivalents                      |   |                             | **64,348**  |                            |   | 90,212 |   |
| Due                    from an affiliated company                 |   |                             | **17,171**  |                            |   | 8,801 |   |
| Promissory                    notes - current portion             |   |                             | **231,293** |                            |   | 186,718 |   |
| Prepaid                    expenses                               |   |                             | **34**      |                            |   | 34 |   |
| Accrued                    interest on cash equivalents           |   |                             | **26**      |                            |   | 47 |   |
| Total                    Current Assets                           |   |                             | **312,872** |                            |   | 285,812 |   |
|                                                              |   |                             |        |                            |   |   |   |
| Promissory                    notes                               |   |                             | **167,974** |                            |   | 193,805 |   |
| **Total                    assets**                               |   |                             | **480,846** |                            |   | 479,617 |   |
|                                                              |   |                             |        |                            |   |   |   |
| **Liabilities**                                                   |   |                             |        |                            |   |   |   |
|                                                              |   |                             |        |                            |   |   |   |
| Current                    Liabilities                            |   |                             |        |                            |   |   |   |
| Due                    to the parent company                      |   |                             | **364**     |                            |   | 365 |   |
| Accounts                    payable                               |   |                             | **54**      |                            |   | 44 |   |
| **Total                    liabilities**                          |   |                             | **418**     |                            |   | 409 |   |
|                                                              |   |                             |        |                            |   |   |   |
| **Stockholders'                    equity**                       |   |                             |        |                            |   |   |   |
|                                                              |   |                             |        |                            |   |   |   |
| Capital                    stock and Additional paid-in capital   |   |                             | **476,764** |                            |   | 476,764 |   |
|                                                              |   |                             |        |                            |   |   |   |
| Retained                    earnings                              |   |                             | **3,664**   |                            |   | 2,444 |   |
|                                                              |   |                             |        |                            |   |   |   |
| **Total                    stockholders' equity**                 |   |                             | **480,428** |                            |   | 479,208 |   |
|                                                              |   |                             |        |                            |   |   |   |
| **Total                    liabilities and stockholders' equity** |   |                             | **480,846** |                            |   | 479,617 |   |

----

***NB        CAPITAL CORPORATION***

***STATEMENTS        OF INCOME***

***(Unaudited)***

|                                                                                            |   | **Three-month                  periods ended** |      |
|-------------------------------------------------------------------------------------------------|--------|------------------------------------------------|-----------|
|                                                                                            |   | **March                  31,**                 |      |
| ***(                  in thousand of US dollars, except per share amounts                  )*** |   | **2007**                                       |      | 2006 |   |
|                                                                                            |   |                                           |      |   |   |
|                                                                                            |   | **$**                                          |      | $ |   |
| **Revenue**                                                                                     |   |                                           |      |   |   |
| Interest                  income                                                                |   |                                           |      |   |   |   |   |
| Cash                  and cash equivalents                                                      |   |                                           | **942**   |   |   | 438 |   |
| Promissory                  notes                                                               |   |                                           | **6,973** |   |   | 8,144 |   |
| Total                  revenue                                                                  |   |                                           | **7,915** |   |   | 8,582 |   |
|                                                                                            |   |                                           |      |   |   |   |   |
| **Expenses**                                                                                    |   |                                           |      |   |   |   |   |
| Servicing                  and advisory fees                                                    |   |                                           | **364**   |   |   | 421 |   |
| Legal                  and other professional fees                                              |   |                                           | **61**    |   |   | 49 |   |
| Total                  expenses                                                                 |   |                                           | **425**   |   |   | 470 |   |
|                                                                                            |   |                                           |      |   |   |   |   |
| **Net                  income**                                                                 |   |                                           | **7,490** |   |   | 8,112 |   |
|                                                                                            |   |                                           |      |   |   |   |   |
| Preferred                  stock dividends                                                      |   |                                           | **6,270** |   |   | 6,270 |   |
|                                                                                            |   |                                           |      |   |   |   |   |
| **Income                  available to common stockholders**                                    |   |                                           | **1,220** |   |   | 1,842 |   |
|                                                                                            |   |                                           |      |   |   |   |   |
| Weighted-average                  number of common shares outstanding                           |   |                                           | **100**   |   |   | 100 |   |
|                                                                                            |   |                                           |      |   |   |   |   |
| **Earnings                  per common share - basic and diluted**                              |   |                                           | **12**    |   |   | 18 |   |

----

***NB        CAPITAL CORPORATION***

***STATEMENTS          OF STOCKHOLDERS' EQUITY***

***(Unaudited)***

|                                                          |   | **Three-month                      periods ended** |        |
|---------------------------------------------------------------|--------|----------------------------------------------------|-------------|
|                                                          |   | **March                      31,**                 |        |
| ***(                      in thousands of US dollars )***     |   | **2007**                                           |        | 2006 |   |
|                                                          |   |                                               |        |   |   |
|                                                          |   | **$**                                              |        | $ |   |
| **Preferred                      stock**                      |   |                                               |        |   |   |
| **Balance,                      beginning and end of period** |   |                                               | **3**       |   |   | 3 |   |
|                                                          |   |                                               |        |   |   |   |   |
| **Common                      stock and paid-in capital**     |   |                                               |        |   |   |   |   |
| **Balance,                      beginning and end of period** |   |                                               | **476,761** |   |   | 476,761 |   |
|                                                          |   |                                               |        |   |   |   |   |
| **Retained                      earnings**                    |   |                                               |        |   |   |   |   |
| Balance,                      beginning of period             |   |                                               | **2,444**   |   |   | 2,328 |   |
| Net                      income                               |   |                                               | **7,490**   |   |   | 8,112 |   |
| Preferred                      stock dividends                |   |                                               | **(6,270**  | **)** |   | (6,270 | ) |
| **Balance,                      end of period**               |   |                                               | **3,664**   |   |   | 4,170 |   |
|                                                          |   |                                               |        |   |   |   |   |
| **Total                      stockholders' equity**           |   |                                               | **480,428** |   |   | 480,934 |   |
|                                                          |   |                                               |        |   |   |   |   |

----

***NB        CAPITAL CORPORATION***

***STATEMENTS        OF CASH FLOWS***

***(Unaudited)***

|                                                             |   | **Three-month                  periods ended** |         |
|------------------------------------------------------------------|--------|------------------------------------------------|--------------|
|                                                             |   | **March                  31,**                 |         |
| ***(                  in thousand of US dollars )***             |   | **2007**                                       |         | 2006 |   |
|                                                             |   |                                           |         |   |   |
|                                                             |   | **$**                                          |         | $ |   |
| **OPERATING                  ACTIVITIES**                        |   |                                           |         |   |   |
|                                                             |   |                                           |         |   |   |
| Net                  income                                      |   |                                           | **7,490**    |   |   | 8,112 |   |
| Item                  not affecting cash resources :             |   |                                           |         |   |   |   |   |
| Prepaid                  expenses                                |   |                                           | **-**        |   |   | (1 | ) |
| Due                  from an affiliated company                  |   |                                           | **(8,370**   | **)** |   | (36 | ) |
| Due                  to the parent company                       |   |                                           | **(1**       | **)** |   | 19 |   |
| Accounts                  payable                                |   |                                           | **10**       |   |   | (58 | ) |
| Accrued                  interest receivable on cash equivalents |   |                                           | **21**       |   |   | 16 |   |
|                                                             |   |                                           |         |   |   |   |   |
| Net                  cash provided by operating activities       |   |                                           | **(850**     | **)** |   | 8,052 |   |
|                                                             |   |                                           |         |   |   |   |   |
| **FINANCING                  ACTIVITIES**                        |   |                                           |         |   |   |   |   |
|                                                             |   |                                           |         |   |   |   |   |
| Dividends                                                        |   |                                           | **(6,270**   | **)** |   | (6,270 | ) |
| Net                  cash used in financing activities           |   |                                           | **(6,270**   | **)** |   | (6,270 | ) |
|                                                             |   |                                           |         |   |   |   |   |
| **INVESTING                  ACTIVITIES**                        |   |                                           |         |   |   |   |   |
|                                                             |   |                                           |         |   |   |   |   |
| Investment                  in promissory notes                  |   |                                           | **(118,363** | **)** |   | (82,898 | ) |
| Repayments                  of promissory notes                  |   |                                           | **99,619**   |   |   | 33,406 |   |
| Net                  cash used in investing activities           |   |                                           | **(18,744**  | **)** |   | (49,492 | ) |
|                                                             |   |                                           |         |   |   |   |   |
| Cash                  and cash equivalents, beginning of period  |   |                                           | **90,212**   |   |   | 59,901 |   |
| **Cash                  and cash equivalents, end of period**    |   |                                           | **64,348**   |   |   | 12,191 |   |
|                                                             |   |                                           |         |   |   |   |   |

----

***NB      CAPITAL CORPORATION***

***NOTES      TO THE FINANCIAL STATEMENTS***

*March      31, 2007*

*(in      thousands of U.S. dollars)*

**1)      Incorporation and nature of operations**

**2)      Significant accounting policies**

***Financial      statements***

***Cash      and cash equivalents***

***Promissory      notes***

***Income      taxes***

*Internal      Revenue Code of 1986*

***Per      share data***

----

**2)      Significant accounting policies (continued)**

***Estimates***

***Interest      on Promissory notes and cash equivalent***

**3)      Promissory notes**

| Promissory                notes as of December 31, 2006 |   |   | $380,523 |   |
|---------------------------------------------------------|--------|--------|----------|--------|
| Acquisitions                                            |   |   | 118,363  |   |
| Principal                repayments                     |   |   | (99,619  | )      |
| Promissory                notes as of March 31, 2007    |   |   | $399,267 |   |

| 2007 |   |   | $180,135 |   |
|------|--------|--------|----------|--------|
| 2008 |   |   | $72,885  |   |
| 2009 |   |   | $27,498  |   |
| 2010 |   |   | $27,707  |   |
| 2011 |   |   | $46,211  |   |
| 2012 |   |   | $26,161  |   |
| 2013 |   |   | $6,530   |   |
| 2014 |   |   | $3,575   |   |
| 2015 |   |   | $8,565   |   |

**4)      Transactions with an affiliated company**

**5)      Transactions with the parent company**

***Advisory      agreement***

----

***5)      Transactions with the parent company (continued)***

***Servicing      agreement***

***Custodial      agreement***

***Interest      on cash and cash equivalents***

**6)      Stockholders' equity **

*(in      U.S. Dollars)*

***Common      stock***

|   | · | 100                shares have been authorized and issued to the                Bank. |
|--------|--------|---------------------------------------------------------------------------------------|

***Preferred      stock***

|   | · | 300,000                shares of preferred stock have been authorized and issued as 8.35%                Noncumulative Exchangeable Preferred Stock, Series A (“Series A Preferred                Shares”), non-voting, ranked senior to the common stock and junior to the                Adjustable Rate Cumulative Senior Preferred Shares, with a liquidation                value of $1,000 per share, redeemable at the Company's option on                or after                September 3, 2007, except upon the occurrence of certain changes                in tax                laws in the United States or in Canada, on or after September 3,                2002.                These Series A Preferred Shares are traded on the New York Stock                Exchange                in the form of Depository Shares, each Depository Share representing                a                one-fortieth interest therein. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Each                Series A Preferred Share is exchangeable, upon the occurrence of                certain                events, for one newly issued 8.45% Noncumulative First Preferred                Share,                Series Z, of the Bank. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 1,000                shares of preferred stock have been authorized (110 issued) as Adjustable                Rate Cumulative Senior Preferred Shares, non-voting, ranked senior                to the                common stock and to the Series A Preferred Shares with a liquidation                value                of $3,000 per share, redeemable at the Company's option at any time                and                retractable at the holder's option on December 30, 2007 and every                ten-year                anniversary thereof. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **Highlights**                                                          |   |     |                            |   |   |                        |   |
|-------------------------------------------------------------------------|--------|----------|---------------------------------|--------|--------|-----------------------------|--------|
|                                                                    |   |     |                            |   |   |                        |   |
| Quarter                  ended January 31                               |   |     |                            |   |   |                        |   |
| (unaudited)                                                             |   |     |                            |        |   | %                           |   |
|                                                                    |   | **2007** |                            | 2006   |   | **Change**                  |   |
| **Operating                  results**                                  |   |     |                            |   |   |                        |   |
| (millions                  of Canadian dollars)                         |   |     |                            |   |   |                        |   |
| Total                  revenues                                         |   |     | **$989**                        |   |   | $971                        |   |   | 2 |   |
| Net                  income                                             |   |     | **240**                         |   |   | 217                         |   |   | 11 |   |
| Return                  on common shareholders' equity                  |   |     | **20.7**                        | %      |   | 19.9                        | %      |   |   |   |
|                                                                    |   |     |                            |   |   |                        |   |   |   |   |
| **Per                  common share**                                   |   |     |                            |   |   |                        |   |   |   |   |
| Earnings                  - basic                                       |   |     | **$1.45**                       |   |   | $1.28                       |   |   | 13 |   |
| Earnings                  - diluted                                     |   |     | **1.43**                        |   |   | 1.26                        |   |   | 13 |   |
| Dividends                  declared                                     |   |     | **0.54**                        |   |   | 0.48                        |   |   | 13 |   |
| Book                  value                                             |   |     | **28.34**                       |   |   | 25.72                       |   |   | 10 |   |
| Stock                  trading range                                    |   |     |                            |   |   |                        |   |   |   |   |
| High                                                                    |   |     | **66.59**                       |   |   | 63.90                       |   |   |   |   |
| Low                                                                     |   |     | **61.36**                       |   |   | 58.35                       |   |   |   |   |
| Close                                                                   |   |     | **64.29**                       |   |   | 61.75                       |   |   |   |   |
|                                                                    |   |     |                            |   |   |                        |   |   |   |   |
|                                                                         |   |     | **January                  31** |   |   | October                  31 |   |   |   |   |
|                                                                    |   |     | **2007**                        |   |   | 2006                        |   |   |   |   |
| **Financial                  position**                                 |   |     |                            |   |   |                        |   |   |   |   |
| (millions                  of Canadian dollars)                         |   |     |                            |   |   |                        |   |   |   |   |
|                                                                    |   |     |                            |   |   |                        |   |   |   |   |
| Cash                  resources and securities                          |   |     | **64,435**                      |   |   | 57,149                      |   |   | 13 |   |
| Loans                  and acceptances                                  |   |     | **48,591**                      |   |   | 50,488                      |   |   | (4 | ) |
| Other                  assets                                           |   |     | **9,790**                       |   |   | 9,248                       |   |   | 6 |   |
| Total                  assets                                           |   |     | **$122,816**                    |   |   | $116,885                    |   |   | 5 |   |
|                                                                    |   |     |                            |   |   |                        |   |   |   |   |
| Deposits                                                                |   |     | **72,463**                      |   |   | 71,989                      |   |   | 1 |   |
| Other                  liabilities                                      |   |     | **42,717**                      |   |   | 38,083                      |   |   | 12 |   |
|                                                                    |   |     |                            |   |   |                        |   |   |   |   |
| Subordinated                  debentures                                |   |     | **1,949**                       |   |   | 1,449                       |   |   | 35 |   |
| Non-controlling                  interest                               |   |     | **714**                         |   |   | 576                         |   |   | 24 |   |
|                                                                    |   |     |                            |   |   |                        |   |   |   |   |
| Preferred                  shares                                       |   |     | **400**                         |   |   | 400                         |   |   | - |   |
| Common                  shares                                          |   |     | **1,583**                       |   |   | 1,566                       |   |   | 1 |   |
| Retained                  earnings                                      |   |     | **2,990**                       |   |   | 2,822                       |   |   | 6 |   |
| Total                  liabilities and shareholder's equity             |   |     | **$122,816**                    |   |   | $116,885                    |   |   | 5 |   |
|                                                                    |   |     |                            |   |   |                        |   |   |   |   |
| Capital                  ratios - BIS                                   |   |     |                            |   |   |                        |   |   |   |   |
| Tier                  1                                                 |   |     | **9.9**                         | **%**  |   | 9.9                         | %      |   |   |   |
| Total                                                                   |   |     | **14.0**                        | **%**  |   | 14.0                        | %(1)   |   |   |   |
|                                                                    |   |     |                            |   |   |                        |   |   |   |   |
| Impaired                  loans, net of specific and general allowances |   |     | **(196**                        | **)**  |   | (192                        | )      |   |   |   |
| as                  a % of loans and acceptances                        |   |     | **(0.4)**                       | **%**  |   | (0.4)                       | %      |   |   |   |
|                                                                    |   |     |                            |   |   |                        |   |   |   |   |
| Assets                  under administration/management                 |   |     | **235,378**                     |   |   | 228,749                     |   |   |   |   |

| (1) | Taking                    into account the issuances of $500 million of subordinated debentures                    on                    November 2, 2006. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM              2. | MANAGEMENT’S                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF                OPERATIONS |
|----------------------|---------------------------------------------------------------------------------------------------------------------------|

**Overview**

*(in      thousands of U.S. dollars)*

**Critical      accounting policies **

**Results      of operations**

*(in      thousands of U.S. dollars)*

----

**Capital      Resources and Liquidity**

*(in      thousand of U.S. dollars)*

----

**Disclosure      of Contractual Obligations**

**Off-Balance      Sheet Arrangements**

| ITEM              3. | QUANTITATIVE                AND QUALITATIVE DISCLOSURES ABOUT MARKET                RISK |
|----------------------|------------------------------------------------------------------------------------------|

**Disclosure      About Market Risk**

| ITEM              4. | CONTROLS                AND PROCEDURES |
|----------------------|----------------------------------------|

----

| ITEM              5. | OTHER                INFORMATION |
|----------------------|----------------------------------|

| ITEM              6. | EXHIBITS |
|----------------------|----------|

| Exhibit                No. |   | Description                                                                                                                                                                  |
|----------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |   |                                                                                                                                                                         |
| 11                         |   | Computation                of Earnings Per Share                                                                                                                             |
|                       |   |                                                                                                                                                                         |
| 14                         |   | Code                of Ethics (as revised)                                                                                                                                   |
|                       |   |                                                                                                                                                                         |
| 31.1                       |   | Certification                of Chairman and President pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002                                              |
|                       |   |                                                                                                                                                                         |
| 31.2                       |   | Certification                of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002                                             |
|                       |   |                                                                                                                                                                         |
| 32.1                       |   | Written                Statement of Chairman and President Pursuant to Section 906 of the                Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)                 |
|                       |   |                                                                                                                                                                         |
| 32.2                       |   | Written                Statement of Chief Financial Officer Pursuant to Section 906 of the                Sarbanes-Oxley Act of 2002 (18 U.S.C. Section                1350) |

----

**SIGNATURES**

|                                                       |                                                                               |                                  |
|------------------------------------------------------------|------------------------------------------------------------------------------------|---------------------------------------|
|                                                       |                                                                               | NB                CAPITAL CORPORATION |
|                                                  |                                                                          |                             |
| Date              :              May              15, 2007 |                                                                          | /s/              Donna Goral     |
|                                                       | Donna                Goral Chairman                of the Board and President |
|                                                       |                                                                     |                    |
|------------------------------------------------------------|--------------------------------------------------------------------------|-------------------------|
| Date              :              May              15, 2007 |                                                                | /s/ Jean Dagenais  |
|                                                       | Jean                Dagenais Chief                Financial Officer |

----