Since September 11, 2001, the financial community has developed new processes, procedures and regulations to improve the resiliency of the financial markets, provide clearer security for customers’ assets and reaffirm confidence in the ability to mitigate and/or respond to momentous events.

All members of the NASD and NYSE are required to have a Business Continuity Plan in place and to communicate that information to their customers. BMO Capital Markets Corp has taken appropriate steps to protect our customers’ assets and to comply with all financial market rules and regulations.

Our goal is to resume essential business operations within 24 hours after a significant incident.

To ensure that BMO Capital Markets Corp can continue to function as a broker/dealer and to service our customers following a significant business disruption event, the following steps have been implemented:

1. A power generator has been installed in our main processing site to mitigate risk during a power outage. (This generator was used successfully during the August 2003 regional power outage.)
2. A fully-operable back-up facility has been developed outside of New York City. This capability can be activated should a crisis event (a) cause a loss of key services that support our operations in New York City, (b) force the abandonment or evacuation of our New York City location, or (c) render our New York City location inaccessible for our use.
3. We installed Post Edge, an ADP system that enables us to access books and records electronically from our back-up facility.
4. We arranged for routing of communication lines and telephone numbers to alternate locations so that we can maintain reasonable communications with our customers, vendors, counter-parties, other company locations and regulators, both domestically and internationally.
5. We regularly review the preparations and recovery plans of our vendors, counter-parties and service providers to ensure they will continue to provide services we rely upon to perform our business.
6. We have completed BCP Pandemic addendums addressing the Avian Flu contingency
7. We enhance Employee Awareness on Life and Safety issues by issuing BCP related materials to our employees on a periodic basis, such as Emergency Information Wallet Guides, Accounting for People Team Cards, Emergency Information Magnets for family reference, Emergency Preparedness Documents and Emergency Kits.
8. We conduct regularly monitored Fire drills, Building Evacuation Drills and store Shelter-in Place Kits for the emergency use of our staff.
9. We coordinate our BCP efforts internally with the Business Management Team in Chicago as well as the Enterprise Wide, Risk Management Team in Toronto.
10. Should a catastrophic event cause both the main and back-up facilities of BMO Capital Markets Corp to be inoperable or inaccessible, our Toronto-based, investment banking affiliate within BMO Financial Group, would be capable of fulfilling our broker/deal role in the administration, safekeeping and processing of BMO Capital Markets Corp’s customers’ assets.

If you have questions about our business continuity planning, you can contact our Compliance Officer:

BCP Related Links:

• http://www.drsbytamp.com - TAMP is a global leader in business continuity and recovery planning software and services. BMO Capital Markets' offsite BCP tool is located on TAMP's website: www.drsplanner.com.



• http://www.sifma.org - As a Corporate Member of The Securities Industry and Financial Markets Association (SIFMA), Tom Avansino is included in the SIFMA's Alert Notification email distributions. Through SIFMA and its Business Continuity Planning Committee, the industry has developed and promoted some of the most effective BCP best practices guidelines, installed a proven industry-wide emergency command center and established constructive working relationships with regulators and government emergency management organizations. The securities industry is widely recognized as a leader and an innovator in business continuity planning and has been unmatched in improving its resiliency since 9/11.



• http://www.finra.org - The Financial Industry Regulatory Authority (FINRA) was created in July 2007 through the consolidation of NASD and the member regulation, enforcement and arbitration functions of the New York Stock Exchange. It also performs market regulation under contract for The NASDAQ Stock Market, the American Stock Exchange, the International Securities Exchange and the Chicago Climate Exchange.