New Issue: Bank of Montreal prices $125,000 reverse exchangeable notes linked to iShares Russell

New York, July 30 - Bank of Montreal priced $125,000 of 7.5% annualized reverse exchangeable notes due Jan. 31, 2013 linked to the iShares Russell 2000 index fund, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless the exchange-traded fund's shares close below the trigger level, 85% of the initial share price, during the life of the notes and finish below the initial share price, in which case the payout will be a number of shares of iShares Russell 2000 equal to $1,000 divided by the initial share price or, at the issuer's option, the cash equivalent.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Reverse exchangeable notes
Underlying ETF:	iShares Russell 2000 index fund (Symbol: IWM)
Amount:	$125,000
Maturity:	Jan. 31, 2013
Coupon:	7.5% annualized, payable monthly
Price:	Par
Payout at maturity:	If iShares Russell ever closes below trigger price and finishes below initial share price, a number of iShares Russell shares equal to $1,000 divided by the initial share price; otherwise, par
Initial share price:	$77.48
Trigger price:	$65.86, 85% of initial price
Pricing date:	July 26
Settlement date:	July 31
Underwriters:	BMO Capital Markets Corp.
Fees:	2%
Cusip:	06366RFR1

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