BMO Financial Group Announces Issuance of 5.75% Trust Subordinated Notes due 2022

    TORONTO, Sept. 19 /CNW/ - Bank of Montreal (TSX, NYSE:   BMO) today
announced that BMO Subordinated Notes Trust, a closed-end trust wholly-owned
by the Bank, will issue $800 million of Trust Subordinated Notes (the
"Notes"). The Notes are fully and unconditionally guaranteed by the Bank on a
subordinated basis and will qualify as subordinated debt of the Bank for
regulatory purposes.
    Interest on the Notes is payable semi-annually at a fixed rate of 5.75%
from the date of issue to, but excluding, September 26, 2017, and at a
floating rate equal to the rate on 3 month Bankers' Acceptances plus 1.00%
(paid quarterly) thereafter to maturity on September 26, 2022.
    BMO Subordinated Notes Trust, at its option, with the prior approval of
the Office of the Superintendent of Financial Institutions (Canada), may
redeem the Notes, in whole at any time, or in part from time to time, on not
less than 30 days and not more than 60 days prior notice to registered
holders. If redeemed prior to September 26, 2017, the redemption price will be
the greater of the "Canada Yield Price" and par. The Notes are redeemable at
par on and after September 26, 2017. The "Canada Yield Price" is the price
that would provide a yield from the redemption date to September 26, 2017
equal to the yield that a non-callable issue of Government of Canada bonds
would carry from the redemption date to September 26, 2017 plus 0.335%.
    In certain circumstances, the Notes may be automatically exchanged for
BMO Series E Subordinated Notes. The BMO Series E Subordinated Notes will have
substantially the same terms and conditions as the Notes but will be direct
subordinated notes issued by the Bank.
    The transaction is expected to close on September 26, 2007 and the net
proceeds will be used by the Bank for general corporate purposes.
    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 $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: Media Relations: Ralph Marranca, Toronto,, (416) 867-3996; Ronald Monet, Montreal,, (514) 877-1873; Investor Relations: Viki Lazaris,
Toronto,, (416) 867-6656; Steven Bonin, Toronto,, (416) 867-5452; Krista White, Toronto, (416) 867-7019; Internet:

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