Date Closed

December 11, 2008

Lead Office

Toronto

Value

150.00 Million CAD

On December 11, 2008, Bank of Montreal issued C$150 million of Non-Cumulative 5-Year Rate Reset Class B Preferred Shares Series 18. The offering was underwritten on a bought deal basis by a syndicate led by BMO Capital Markets and included CIBC World Markets, RBC Capital Markets, Scotia Capital Inc., TD Securities Inc., Desjardins Securities Inc., National Bank Financial Inc., HSBC Securities (Canada) Inc., Brookfield Financial Corp. and Laurentian Bank Securities Inc. The Preferred Shares were issued to the public at a price of C$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 C$0.40625 per Preferred Share, to yield 6.50% annually commencing on the closing date and ending on February 25, 2014. Thereafter, the dividend rate will reset every five years to be equal to the 5-Year Government of Canada Bond Yield plus 3.83%.

McCarthy Tétrault LLP advised the underwriters with a team led by Andrew Parker.