BMO Celebrates Grand Opening of New Shanghai Branch

SHANGHAI, June 18, 2008 – BMO Financial Group, Canada’s leading bank in China, celebrated the grand opening of its Shanghai Branch on June 19^th. The branch, which commenced operations on May 13th, will provide North American and Chinese clients with a wide range of products, including trade finance, corporate financing, treasury products, term deposits, foreign exchange and US$ accounts. In addition, the branch will assist Chinese nationals seeking to immigrate to Canada with advice and immigration banking services. BMO’s Shanghai branch combines the expertise of on-the-ground advisers, who have a deep understanding of local legal and regulatory structures, and the strength of BMO’s professional teams in North America.

“With branches in Beijing, Guangzhou, Hong Kong and now Shanghai, BMO is exceptionally well-positioned to help Chinese corporate and institutional clients and North American businesses do business in China,” said Bill Downe, Chief Executive of BMO Financial Group. “Upgrading from a Representative Office to full Branch status gives BMO broader geographic coverage in China and will allow us to better serve clients investing in the bustling Yangtze River Delta region, which is home to over 90 million people and is the largest recipient of North American direct investment in China.

“ BMO’s ties with China go back to 1818 – the year after our founding – when we undertook our first foreign exchange transaction in support of trade with China, added Mr. Downe. “For my entire working life, China has been a most important destination for presidents of BMO.”

“In the 1920s, BMO sent an officer on a long sea trip to China. Upon seeing the prosperity, he recommended that we open a branch here. Unfortunately, the Great Depression and other historical events got in the way. Today, our dream has come true,” said Bob Martin, BMO’s Regional Executive - Asia, who has lived in Asia for almost 30 years. “Today, the full range of BMO’s capabilities in China is extraordinary and our team represents the very best in commitment from a foreign bank that you will ever find in China.”

Commenting on BMO’s 28 per cent equity interest in Shanghai-based Fullgoal Fund Management Co., Mr. Downe said, “Wealth management is an important plank in BMO’s China strategy and, as per capita income grows, Fullgoal will grow too and will be there to help Chinese investors save and plan for the future.”

BMO Accomplishments in China:

• In November 2004, BMO became the first Canadian bank to be granted a license by the China Banking Regulatory Commission to sell derivative instruments in China.
• In March 2005, BMO was the only Canadian bank selected as a marketmaker for foreign exchange trading in China through the interbank China Foreign Exchange Trade System (CFETS).
• In July 2005, BMO’s Guangzhou branch became the first Canadian bank location to be granted a license to provide RMB local currency service such as deposits and loans to both foreign and local companies in China, providing greater access to financial services in the country.
• In August 2005, Fullgoal received a license to manage corporate pension plan assets in China. Only three other foreign financial institution joint ventures received licenses.
• In June 2006, BMO's investment banking arm was one of six financial institutions, and the only Canadian financial institution, to act as co-lead Manager of Bank of China's IPO in Hong Kong.
• In July 2006, BMO’s Beijing branch became the first Canadian bank location to be granted permission to deal in RMB transactions out of Beijing.
• In February 2008, the China Foreign Exchange Trading System recognized BMO as the #1 Foreign Exchange Bank in the Guangzhou region. This is the seventh year that we have earned this distinction.
• BMO is also:

• The first Canadian bank and one of a handful of foreign banks to participate as a marketmaker in China’s foreign exchange market starting in 2002
• The first Canadian bank in China to price and trade Foreign Exchange forwards
• The first Canadian bank to underwrite a domestic China bond in US Dollars
• A pioneer in the Chinese foreign exchange market that has consistently ranked among the top 10 banks in China (domestic and foreign) for the past 10 years.

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