Bank of Montreal to Issue $1,200,000,000 of 5.20% Subordinated Indebtedness, due 2017



    TORONTO, June 18 /CNW/ - Bank of Montreal (TSX, NYSE:   BMO) today
announced that it intends to issue subordinated indebtedness under its
Canadian Medium Term Note Program. The issue, the Series D Medium Term Notes,
Second Tranche, is a $1.2 billion public offering due June 2017. Interest on
this issue is payable semi-annually at a fixed rate of 5.20% until June 21,
2012, and at a floating rate equal to the rate on 3 month Bankers' Acceptances
plus 1.00% (paid quarterly) thereafter to maturity.
    Bank of Montreal may, at its option, with the prior approval of the
Office of the Superintendent of Financial Institutions Canada, redeem the
subordinated indebtedness, in whole at any time, or in part from time to time,
on not less than 30 days and not more than 60 days notice to registered
holders. If redeemed prior to June 21, 2012, the redemption price will be the
greater of the "Canada Yield Price" and par. The subordinated indebtedness is
redeemable on and after June 21, 2012 at par. The "Canada Yield Price" is the
price that would provide a yield from the redemption date to June 21, 2012
equal to the yield that a non-callable issue of Government of Canada bonds
would carry from the redemption date to June 21, 2012 plus 0.13%.
    The issue, which is expected to close on June 21, will add to the Bank's
Tier 2 Capital base. The net proceeds of the offering will be used for general
corporate purposes of Bank of Montreal.
    BMO Capital Markets is the lead agent on the issue.

    The securities have not been registered under the U.S. Securities Act of
1933, as amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements. This
news release shall not constitute an offer to sell in the United States.

    Established in 1817 as Bank of Montreal, BMO Financial Group is a highly
diversified North American financial services organization. With total assets
of $357 billion as at April 30, 2007, and more than 35,000 employees, BMO
provides a broad range of retail banking, wealth management and investment
banking products and solutions. BMO Financial Group serves clients across
Canada through its Canadian retail arm, BMO Bank of Montreal, and through its
wealth management firms BMO Nesbitt Burns, BMO InvestorLine and BMO Harris
Private Banking. BMO Capital Markets, our North American investment and
corporate banking division, provides a full suite of financial products and
services to our North American and international clients. In the United
States, BMO serves clients through Chicago-based Harris, an integrated
financial services organization that provides more than one million personal
and business clients with banking, lending, investing, financial planning,
trust administration, portfolio management, family office and wealth transfer
services.




For further information:

For further information: Media Relations: Ralph Marranca, Toronto,
ralph.marranca@bmo.com, (416) 867-3996; Ronald Monet, Montreal,
ronald.monet@bmo.com, (514) 877-1101; Investor Relations: Steven Bonin,
Director, steven.bonin@bmo.com, (416) 867-5452; Krista White, Senior Manager,
krista.white@bmo.com, (416) 867-7019; Internet: www.bmo.com


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