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Abstract
Bank of Montreal also announced the introduction of a 2 per cent discount on the reinvestment of dividends in newly issued common shares under its Shareholder Dividend Reinvestment and Share Purchase Plan (the "Plan"). Under the Plan, shareholders may elect to have dividends on common shares reinvested in additional common shares of the Bank. The Bank determines whether the additional common shares are purchased on the secondary market or are newly-issued by the Bank from treasury. At this time, the Bank has decided to issue shares from treasury at a 2 per cent discount from the Average Market Price (as defined in the Plan) until such time as the Bank elects otherwise. Previously, the common shares purchased under the Plan had been issued from treasury with no discount to the Average Market Price. The discount will not apply to shares purchased under the "Optional Cash Payment" feature of the Plan. This change will be effective for the first quarter of fiscal 2012 dividend ("Q1 2012 Dividend").