George Town, Grand Cayman, Cayman Islands - October 9, 2008

Cayman National Corporation Ltd. (CSX: CNC KY) announced today that Yellow Pilgrim Ltd., a company owned by the Cayman National Corporation Provident Fund (a trust), purchased 1,000,000 common shares in the capital of CNC in an off-market transaction.

These shares had originally been issued to Aall Trust & Banking Corporation Ltd. ("Aall") as consideration in CNC’s purchase of certain of Aall’s assets in 2004. Considering this factor and the size of the purchase, Yellow Pilgrim paid an appropriate discount to the present market price for the shares.

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About Cayman National.

Cayman National Corporation Ltd. is the largest financial services company based in the Cayman Islands, providing banking, trust and company management, fund administration, wealth management, and insurance services to clients locally and around the world, from the Cayman Islands and the Isle of Man.

CNC is publicly traded on the Cayman Islands Stock Exchange.

Contact:

Claudia Welds, Senior Executive, Corporate Communications, Tel: 345-815-5417