A new board of directors will be created with equal representation from thetwo founding boards. Mr. Cleghorn will serve as Co-Chairman of the new bank'sBoard of Directors and Chief Executive Officer of the new bank. Mr. Barrettwill serve as Co-Chairman of the new bank's Board of Directors, Chairman ofthe Board's Executive Committee, and will have special responsibility foractivities relating to integration and strategic planning. The SeniorManagement Committee of the new bank will have 18 members, including Messrs.Cleghorn and Barrett, drawn equally from the two banks. The merger requires approval under the Bank Act and the Competition Act inCanada, as well as various other Canadian, US and international approvals. The new bank would rank in the top 10 in North America and the top 25 in theworld for market capitalization, and based on fiscal 1997 year-end would havegenerated 41 per cent of its total income from outside Canada from more than300 branches and offices in more than 35 countries. Bank of Montreal is a highly diversified financial services organizationthat includes Nesbitt Burns and Chicago-based Harris Bank. Bank of Montrealhas an equity position in and an alliance with Grupo Financiero Bancomer, theleading Mexican financial institution. The bank and its 34,000 employeesserve seven million customers, through 1,250 locations. Royal Bank of Canada is the country's largest provider of personal andbusiness banking, corporate and investment banking and wealth management. TheRoyal Bank Financial Group includes Royal Trust, RBC Dominion Securities, RBCInsurance and Royal Bank Action Direct. The bank has 58,000 employees whoserve 10 million customers through 1,600 branches and offices in 35 countries. Contacts: Media Relations Investor Relations Bank of Montreal Joe Barbera, 416-927-2740 Cathy Cranston, 416-867-6656 Lynne Kilpatrick 416-927-2740 Ronald Monet, 514-877-1101 Royal Bank of Canada Dan Maceluch, 416-974-5506 Nabanita Merchant, 416-955-7803 Editors / Assignment Desk: There will be a news conference with Mr. Cleghorn and Mr. Barrett at 10 AM, Royal York Hotel, The Upper Canada Room, 18th Floor FACT SHEET ---------- Transaction Summary ------------------- BMO RY No. common shares outstanding (in thousands) 261,606 308,608 --------------------------------------------------------- Exchange ratio 0.97 1.00 --------------------------------------------------------- No. of new bank common shares (in thousands) 253,758 308,608 --------------------------------------------------------- Share price (30-day average)(x) $62.27 $76.27 --------------------------------------------------------- (x)period ending Jan. 22/98 I. The exchange ratio is fixed (i.e. will not be adjusted for future share price movements) and will be applied to the number of common shares outstanding at closing. Based on current shares outstanding, it would result in Bank of Montreal shareholders owning 45.1 per cent of the outstanding common shares of the new bank and Royal Bank shareholders owning 54.9 per cent. Other Key Terms --------------- I. The new bank intends to adopt a dividend policy that won't result in diminution to either bank's shareholders. Key Financial Data For the year ended Oct. 31, 1997 ---------------------------------------------------------------------- BMO RY ---------------------------------------------------------------------- Total assets (as at Oct. 31) $208 billion $245 billion ---------------------------------------------------------------------- Total revenue $7.2 billion $9.3 billion ---------------------------------------------------------------------- Net income $1.31 billion $1.68 billion ---------------------------------------------------------------------- Market capitalization $15.9 billion $23.2 billion ---------------------------------------------------------------------- Net income from outside Canada 58% 28% ---------------------------------------------------------------------- Earnings per share (basic) $4.69 $5.01 ---------------------------------------------------------------------- Return on equity 17.1% 19.3% ---------------------------------------------------------------------- Return on investment 55% 74% ---------------------------------------------------------------------- Productivity 64.4% 65% ---------------------------------------------------------------------- Assets under administration $299.1 billion $782.3 billion ---------------------------------------------------------------------- Assets under management $52.9 billion $66.1 billion ---------------------------------------------------------------------- Provision for credit losses/Average loans .23% .25% ---------------------------------------------------------------------- Net impaired loans ($358 million) $103 million ---------------------------------------------------------------------- Other Facts and Figures for 1997 ---------------------------------------------------------------------- BMO RY ---------------------------------------------------------------------- Salaries and benefits $2.5 billion $3.4 billion ---------------------------------------------------------------------- Goods and services purchased $1.7 billion $1.8 billion ---------------------------------------------------------------------- Taxes and gov't levies paid $1.2 billion $1.5 billion ---------------------------------------------------------------------- Investment in technology $674 million $750 million ---------------------------------------------------------------------- Dividends paid out (common) $427 million $600 million ---------------------------------------------------------------------- Employees (FTE) 34,286 50,719 ---------------------------------------------------------------------- Branches in Canada 1,099 1,453 ---------------------------------------------------------------------- Branches outside Canada 147 105 ---------------------------------------------------------------------- Automated bank machines 2,035 4,248 ---------------------------------------------------------------------- Customers 7 million 10 million ---------------------------------------------------------------------- World's largest banks ranked by market Capitalization (as of Jan. 16, 1998) ---------------------------------------------------------------------- Market Capitalization (US$) ---------------------------------------------------------------------- 1. Lloyds TSB Group $70.3 billion ---------------------------------------------------------------------- 2. Bank of Tokyo-Mitsubishi $67.3 billion ---------------------------------------------------------------------- 3. HSBC Holdings $60.8 billion ---------------------------------------------------------------------- 4. NationsBank $57.7 billion ---------------------------------------------------------------------- 5. United Bank of Switzerland(x) $56.6 billion ---------------------------------------------------------------------- 6. Citicorp $54.8 billion ---------------------------------------------------------------------- 7. BankAmerica Corp. $47.3 billion ---------------------------------------------------------------------- 8. Chase Manhattan Corp. $44.5 billion ---------------------------------------------------------------------- 9. First Union(x) $43.7 billion ---------------------------------------------------------------------- 10. Barclays $43.5 billion ---------------------------------------------------------------------- 11. Sumitomo Bank $41.3 billion ---------------------------------------------------------------------- 12. ING $37.9 billion ---------------------------------------------------------------------- 13. Sanwa Bank $34.3 billion ---------------------------------------------------------------------- 14. Deutsche Bank $32.8 billion ---------------------------------------------------------------------- 15. Banc One Corp. $31.6 billion ---------------------------------------------------------------------- 16. NatWest $29.8 billion ---------------------------------------------------------------------- 17. Credit Suisse Group $29.0 billion ---------------------------------------------------------------------- 18. ABN Amro Holdings $28.5 billion ---------------------------------------------------------------------- 19. Norwest Corp. $28.0 billion ---------------------------------------------------------------------- 20. Wells Fargo & Co. $27.9 billion ---------------------------------------------------------------------- 21. U.S. Bancorp $27.0 billion ---------------------------------------------------------------------- 22. New bank $26.6 billion ---------------------------------------------------------------------- (x) pro forma to include recently-announced merger plans Top 10 North American banks ranked by market Capitalization (as of Jan. 16, 1998) ---------------------------------------------------------------------- Market Capitalization (US$) ---------------------------------------------------------------------- 1. NationsBank $57.7 billion ---------------------------------------------------------------------- 2. Citicorp $54.8 billion ---------------------------------------------------------------------- 3. BankAmerica Corp. $47.3 billion ---------------------------------------------------------------------- 4. Chase Manhattan Corp. $44.5 billion ---------------------------------------------------------------------- 5. First Union(x) $43.7 billion ---------------------------------------------------------------------- 6. Banc One Corp. $31.6 billion ---------------------------------------------------------------------- 7. Norwest Corp. $28.0 billion ---------------------------------------------------------------------- 8. Wells Fargo & Co. $27.9 billion ---------------------------------------------------------------------- 9. U.S. Bancorp $27.0 billion ---------------------------------------------------------------------- 10. New bank $26.6 billion ---------------------------------------------------------------------- (x) pro forma to include recently-announced merger plans SOURCE Bank of Montreal -0- 1/23/98CONTACT: Media Relations - Bank of Montreal, Joe Barbera, 416-927-2740;Lynne Kilpatrick, 416-927-2740; Ronald Monet, 514-877-1101; InvestorRelations - Cathy Cranston, 416-867-6656; Royal Bank of Canada - Dan Maceluch,416-974-5506; Nabanita Merchant, 416-955-7803; Editors / Assignment Desk:There will be a news conference with Mr. Cleghorn and Mr. Barrett at 10 AM,Royal York Hotel, The Upper Canada Room, 18th Floor/ (BMO. RY.) - End -