The Montreal Exchange Becomes Montreal Exchange Inc.

At a Special General Meeting held today, the members of the Montreal Exchange approved its demutualization. Following the meeting, Luc Bertrand, President and CEO, provided an overview of the Montreal Exchange Inc's business plan which includes the implementation of automated trading, and the marketing and development of new and existing products.

The Montreal Exchange will become a for-profit corporation on October 1, 2000. Current members will become shareholders while maintaining trading privileges. This decision changes the Montreal Exchange capital structure thereby opening access to new sources of capital for future development.

In addition, the new electronic trading platform, called SAM (Montreal Automated System), was launched today. The CGB (Ten-year Government of Canada Bond Futures contract), will be the first product to benefit from this new technology.

The CGB is also part of a new program to revitalize the Montreal Exchange's market. CIBC World Markets Inc. and TD Securities Inc. will assume market making responsabilities. The other derivative products at the Montreal Exchange, including the BAX (Three-month Canadian Bankers' Acceptance Futures contract) and the SXF (S&P/TSE 60 Index Futures) will gradually be transferred to the new trading system.

Lastly, by first quarter 2001, the Montreal Exchange intends to launch two new products: single stock futures as well as futures contracts on sectorial indices (S&P/TSE 60).

Action Plan and Automated Trading:

Today Futures and options: CGB, OGB

December 2000 Futures and options: BAX, OBX

Late January 2001 Options on Nortel, Futures on Nortel(*)

Late February 2001 Futures and options on S&P/TSE 60 Index

Futures on sectorial indices(*)

March to June 2001 Other options and single stock futures(*)

(*)New products subject to regulatory approvals

“Our company has made significant new strides as a derivatives exchange. With for-profit status, a strong management team, a state-of-the-art trading platform and a structured and innovative business plan, Montreal Exchange Inc. is positioned to become a leading exchange for derivative products,” said Mr. Bertrand at a news conference following the members' vote.