New Issue: Bank of Montreal prices $15,000 19% reverse exchangeables on Rambus

By Jennifer Chiou

New York, May 17 - Bank of Montreal priced $15,000 of 19% annualized reverse exchangeable notes due Aug. 18, 2011 linked to the common stock of Rambus Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless Rambus shares close 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 Rambus 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:	Rambus Inc. (Symbol: RMBS)
Amount:	$15,000
Maturity date:	Aug. 18, 2011
Coupon:	19%, payable monthly
Price:	Par
Payout at maturity:	Par unless Rambus shares fall below 80% of initial share price during life of notes and finish below initial share price, in which case number of Rambus shares equal to $1,000 divided by initial share price or value of those shares in cash
Initial price:	$15.83
Trigger price:	$12.66, 80% of initial price
Pricing date:	May 13
Settlement date:	May 18
Agent:	BMO Capital Markets Corp.
Fees:	2%
Cusip:	06366QJE8

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