New Issue: Bank of Montreal prices $249,000 20.5% reverse exchangeables linked to McMoRan

By Angela McDaniels

Tacoma, Wash., Jan. 28 - Bank of Montreal priced $249,000 of reverse exchangeable notes due April 29, 2011 linked to the common stock of McMoRan Exploration Co., according to a 424B2 filing with the Securities and Exchange Commission.

The three-month notes carry an annualized coupon of 20.5%. Interest is payable monthly.

The payout at maturity will be par unless McMoRan stock closes below the trigger price - 80% of the initial share price - during the life of the notes and the final share price is less than the initial share price, in which case the payout will be a number of shares of McMoRan stock equal to $1,000 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Reverse exchangeable notes
Underlying stock:	McMoRan Exploration Co. (Symbol: MMR)
Amount:	$249,000
Maturity:	April 29, 2011
Coupon:	20.5%, payable monthly
Price:	Par
Payout at maturity:	If McMoRan stock closes below trigger price during life of notes and final share price is less than initial share price, number of McMoRan shares equal to $1,000 divided by initial share price or value of those shares in cash; otherwise, par
Initial share price:	$15.79
Trigger price:	$12.63, 80% of initial price
Pricing date:	Jan. 26
Settlement date:	Jan. 31
Agent:	BMO Capital Markets Corp.
Fees:	2%
Cusip:	06366QBY2

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