Bank of Montreal to Issue $900 million of 6.17% Subordinated Indebtedness, due 2023



    TORONTO, March 25 /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 F Medium Term Notes,
First Tranche, is a $900 million public offering due 2023. Interest on this
issue is payable semi-annually at a fixed rate of 6.17% until March 28, 2018
and at a floating rate equal to the rate on 3 month Bankers' Acceptances plus
2.50% (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 March 28, 2018, the redemption price will be the
greater of the "Canada Yield Price" and par. The subordinated indebtedness is
redeemable on and after March 28, 2018 at par. The "Canada Yield Price" is the
price that would provide a yield from the redemption date to March 28, 2018
equal to the yield that a non-callable issue of Government of Canada bonds
would carry from the redemption date to March 28, 2018 plus 0.65%.
    The issue, which is expected to close on March 28, 2008, 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.
    Earlier today, and separately, BMO announced a public offering of
$200 million of Non-Cumulative Perpetual Class B Preferred Shares Series 15
(the "Preferred Shares") with an option granted to the underwriters to
purchase up to an additional $50 million of the Preferred Shares. The net
proceeds of the Preferred Shares will also be used by the Bank for general
corporate purposes.
    The securities offered have not been, and will not be, registered under
the U.S. Securities Act of 1933, as amended, and may not be offered, sold or
delivered directly, or indirectly, in the United States absent registration or
an applicable exemption from the registration requirements. This news release
shall not constitute an offer to sell in the United States.





For further information:

For further information: For News Media Enquiries: Ralph Marranca,
Toronto, ralph.marranca@bmo.com, (416) 867-3996; Ronald Monet, Montreal,
ronald.monet@bmo.com, (514) 877-1873; For Investor Relations Enquiries: Steven
Bonin, Toronto, steven.bonin@bmo.com, (416) 867-5452; Krista White, Toronto,
krista.white@bmo.com, (416) 867-7019; Internet: www.bmo.com


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