New Issue: Bank of Montreal sells $215,000 14% reverse exchangeables tied to United Continental

By Toni Weeks

San Diego, April 28 - Bank of Montreal priced $215,000 of 14% annualized reverse exchangeable notes due July 29, 2011 linked to the common stock of United Continental Holdings Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless United Continental shares close below the trigger price - 75% 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 United Continental shares equal to $1,000 divided by the initial share price or, at the issuer's option, the cash value of those shares.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Reverse exchangeable notes
Underlying stock:	United Continental Holdings Inc. (Symbol: UAL)
Amount:	$215,000
Maturity:	July 29, 2011
Coupon:	14%, payable monthly
Price:	Par
Payout at maturity:	Par, unless United Continental shares fall below $16.94, 75% of initial share price, during life of notes and finish below initial share price, in which case number of United Continental shares equal to $1,000 divided by initial share price or value of those shares in cash
Initial price:	$22.58
Trigger price:	$16.94, 75% of initial
Pricing date:	April 26
Settlement date:	April 29
Agent:	BMO Capital Markets Corp.
Fees:	2%
Cusip:	06366QHK6

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