BAM Bam Groep (Kon)

RNS Number:8023E
Bank of Montreal
1 February 2000



Bank of Montreal and Harris Bank to Sell Corporate Trust Businesses

TORONTO, February 1, 2000 - Bank of Montreal announced today that its
Chicago-based Harris Bank subsidiary is selling its corporate trust
businesses. In separate transactions, the indenture trust business is
being sold to a subsidiary of The Bank of New York Company, Inc., and the
shareholder services business to Computershare Limited. The combined
sales will result in a pre-tax gain to Harris of approximately $60 million
US. Excluding the writeoff of the existing operating systems servicing
these businesses, the gain is approximately $90 million US. The sales are
subject to regulatory approval and are expected to close in 45 days.

In Canada, The Trust Company of Bank of Montreal has signed a letter of
agreement to sell the shareholder services business to Computershare and
a letter of intent to negotiate an agreement to sell the indenture trust
business to The Bank of New York. The sales will be subject to regulatory
approval.

Alan G. McNally, Chairman and Chief Executive Officer of Harris Bank, said
the sales support Harris Bank's strategy of focusing on its core
businesses to build shareholder value. "Harris Bank is redirecting
capital and other resources to grow and expand its community banking,
private client, and mid-market corporate and investment banking
businesses," he said.  We have strong market momentum and enormous
opportunity in these areas and we are exploiting them aggressively."

Mr. McNally said the transactions underscore the changing fundamentals
within the corporate trust industry, which has become increasingly
scale-intensive and is undergoing rapid consolidation. "The Bank of New
York Company and Computershare are premier players in the industry and
are committed to growing their corporate trust business." he said. "We
will work very closely with each of them to ensure a smooth and easy
transition for our clients."

Computershare is the world's largest provider of shareholder and related
services, managing more than 37 million shareholder accounts around the
world. Headquartered in Australia and operating in seven countries, the
company has identified North America as a key market in which to expand
its leadership in the global securities industry. As part of the sale to
Computershare, Bank of Montreal, through Harris Bank, acquires an equity
interest in the company.

"We are tremendously excited by this opportunity and look forward to
serving our new clients with state-of-the-art technology, capability and
global reach unmatched in the industry," said Chris Morris, Managing
Director of Computershare.

The Bank of New York Company, which has been in the corporate trust
business for more than 75 years, is the largest provider of indenture
trust services in the U.S. The Bank of New York Company's indenture trust
division services more than 30,000 corporate, government and institutional 
clients representing more than $730 billion in outstanding securities.

Thomas A. Renyi, Chairman and Chief Executive Officer of The Bank of New
York Company said, "These acquisitions further strengthen our commitment
to both our Midwestern and international clients. We look forward to
welcoming these important customers and providing them the combined benefits 
of our exceptional technology and customized relationship services."

Bank of Montreal, Canada's first bank, is a highly-diversified financial
services institution. The bank operates in 32 lines of business within
its group of companies which include Chicago-based Harris Bank, and
Nesbitt Burns, one of Canada's largest full-service investment firms.
Bank of Montreal has an equity position in, and an alliance with, Grupo
Financiero Bancomer, one of Mexico's largest retail banks.


Contacts:

Media Relations

Rick Kuwayti, Toronto (416) 927-2740 
Ronald Monet, Montreal (514) 877-1101 
Paul Gammal, Chicago (312) 461-6625

Investor Relations

Lynn Inglis, Toronto (416) 867-5452

Internet: http://www.bmo.com

END

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