Bank of Montreal Announces Preferred Share Issue

    TORONTO, Sept. 27 /CNW/ - Bank of Montreal (TSX, NYSE:   BMO) today
announced a domestic public offering of $250 million of Non-Cumulative
Perpetual Class B Preferred Shares Series 14 (the "Preferred Shares"). The
offering will be underwritten on a bought deal basis by a syndicate led by BMO
Capital Markets. The Bank has granted to the underwriters an option to
purchase up to an additional $50 million of the Preferred Shares exercisable
at any time up to two days before closing.
    The Preferred Shares will be issued to the public at a price of $25.00
per Preferred Share and holders will be entitled to receive non-cumulative
preferential quarterly dividends as and when declared by the board of
directors of the Bank, payable in the amount of $0.328125 per Preferred Share,
to yield 5.25 per cent annually.
    Subject to regulatory approval, on or after November 25, 2012, the Bank
may redeem the Preferred Shares in whole or in part at a declining premium.
    The anticipated closing date is October 9, 2007. The net proceeds from
the offering will be used by the Bank to increase its capital base and 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.

    Established in 1817 as Bank of Montreal, BMO Financial Group is a highly
diversified North American financial services organization. With total assets
of $359 billion as at July 31, 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. BMO also serves
personal and commercial clients in the United States 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: For Media Inquiries: Ralph Marranca, Toronto,, (416) 867-3996; Ronald Monet, Montreal,, (514) 877-1873; For Investor Inquiries: Viki Lazaris,
Toronto,, (416) 867-6656; Steven Bonin, Toronto,, (416) 867-5452; Krista White, Toronto,, (416) 867-7019; Internet:

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