AGF launches Bank of Montreal AGF Elements(TM) RetirePlus(TM) Notes

    Deposit Notes combine dependable cash flow with inflation protection and
    tax-deferral benefits

    TORONTO, Sept. 2 /CNW/ - AGF Funds Inc. today unveiled Bank of Montreal
AGF Elements(TM) RetirePlus(TM) Notes Series 1 ("Deposit Notes"), an
investment solution that will benefit Canadians preparing for or already
enjoying their retirement.
    The Deposit Notes, issued by the Bank of Montreal, offers investors
reliable cash flow with adjustments for inflation. Investors will also benefit
from potential tax advantages, unlimited growth potential based on the returns
from the AGF Elements Portfolios and automatic reallocation to a progressively
more conservative portfolio.
    "Working with Bank of Montreal, we are pleased to provide these Deposit
Notes to investors as another avenue to access our popular AGF Elements
Portfolios," said Randy G. Ambrosie, President of AGF Funds Inc. "As Canadians
face longer retirements, they will continue to demand investment solutions
that will provide them with guaranteed cash flow as well as protection against

    Two different Deposit Notes are available to investors:

      -  15-Year Note - Beginning immediately, monthly distributions at an
         annual rate of 6.6% of the initial principal, adjusted to
         inflation(*). The Deposit Notes will mature on October 6, 2023.

      -  20-Year Note - Beginning in year six, monthly distributions at an
         annual rate of 6.6 % based on the initial principal or the value
         after the 5-year growth period, whichever is greater, adjusted to
         inflation(*). The Deposit Notes will mature on October 6, 2028.

    With a high initial equity weighting (100% equity for the 20-Year Note
and 80% equity, 20% fixed income for the 15-Year Note), AGF Elements
RetirePlus Notes offer investors greater growth potential. Every five years,
the allocation shifts to a more conservative AGF Elements portfolio to help
reduce risk.

    AGF Elements RetirePlus Notes invest in the underlying AGF Elements

                        Year            Year            Year            Year
                         1-5            6-10           11-15           16-20
    15-Year     AGF Elements    AGF Elements    AGF Elements
    Term              Growth        Balanced    Conservative
                   Portfolio       Portfolio       Portfolio
    20-Year     AGF Elements    AGF Elements    AGF Elements    AGF Elements
    Term              Global          Growth        Balanced    Conservative
                   Portfolio       Portfolio       Portfolio       Portfolio

    "Advisors and investors have responded favourably to our AGF Elements
Portfolios since we launched this managed asset program in 2005. It was only
natural to provide Deposit Notes that invest in Elements so that advisors
would have even more options to help their clients meet their retirement
income needs while tapping into this attractive program," added Ambrosie.
    The terms of the offerings are set out in the Information Statements
dated August 18, 2008 relating to the Deposit Notes.
    The Deposit Notes are available until October 3, 2008.

    (*) Up to $99 per deposit note; inflation adjustment ceases on the
        occurrence of an extraordinary event or capital preservation event.

    About AGF Management Limited

    AGF Management Limited is one of Canada's premier investment management
companies with offices across Canada and subsidiaries around the world. AGF's
products and services include a diversified family of more than 50 mutual
funds, the evolutionary AGF Elements portfolios, the Harmony asset management
program, AGF Asset Management Group services for institutional and
high-net-worth clients, as well as AGF Trust GICs, loans and mortgages. With
approximately $48 billion in total assets under management as of July 31,
2008, AGF serves more than one million investors. AGF trades on the Toronto
Stock Exchange under the symbol "AGF.B".

    Please note: AGF Elements(TM) RetirePlus(TM) Notes are not suitable for
investors requiring a guaranteed or positive return on their investment,
investors who are looking for an income stream over and above a return of
capital, or investors with a short-term time horizon.
    Investments in the AGF Elements RetirePlus Notes are not mutual fund
investments. They are investments in principal protected deposit notes issued
by Bank of Montreal and constitute direct, unconditional obligations of Bank
of Montreal. Variable return, if any, at maturity is based on the Fund
Portfolio Value (and notional fixed annuity) less deposit balance. Details
regarding risk factors are contained in the Information Statements dated
August 18, 2008, which can be obtained through your financial advisor. These
investments do not represent deposits insured under the Canada Deposit
Insurance Corporation Act.
    The above is for information purposes only and is not, and under no
circumstances shall be construed as, an offer to sell or a solicitation to by
the Deposit Notes or as investment advice. The Fund Portfolio is comprised of
notional investments only, meaning that investors will not have any direct or
indirect ownership interest in any of the underlying AGF Elements Portfolios.
An investment in AGF Elements RetirePlus Notes is subject to certain risks,
which investors should consider. Investors should read the related Information
Statement carefully before investing and discuss their suitability with their
investment advisor.
    The Deposit Notes may not be suitable for all types of investors; the
prices and value of the Deposit Notes may fluctuate and/or be adversely
affected by a number of factors. The fluctuation of the value of the Fund
Portfolio will directly impact the return, if any, on the Deposit Notes at
maturity. It is possible that no return will be paid on the Deposit Notes.
Sales prior to maturity may be subject to an early sales charge.
    Bank of Montreal makes no assurances, representations or warranties with
respect to accuracy, reliability or completeness of information contained
herein. Furthermore, Bank of Montreal makes no recommendation concerning AGF
Funds Inc., the AGF Elements Portfolios or the suitability of investing in
securities generally or the Deposit Notes in particular. No person has been
authorized to give any information or to make any representation not contained
in the Information Statement relating to the Deposit Notes and Bank of
Montreal does not accept responsibility for any information not contained in
the Information Statement.
    "BMO Capital Markets" is a registered trademark of Bank of Montreal used
under license. "RetirePlus" is a trademark of BMO Nesbitt Burns Corporation
Limited used under license.

For further information:

For further information: contact AGF Corporate Communications: Lucy
Becker, Vice-President, (416) 865-4284,; Karen Danylak,
Director, (416) 865-4308,; Karen Archer, Media Relations
Manager, (416) 865-4295,

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