Faircourt Asset Management Inc. announced the launch of Faircourt Principal Protected Income Trust Deposit Notes, Series 1, offering investors the unique combination of up to 200% exposure to a portfolio of income trusts with monthly distributions, if any, in addition to 100% principal protection at maturity provided by Bank of Montreal.

The notes are being issued by Bank of Montreal, employing a strategy of dynamic leverage to provide up to 200% exposure to an underlying portfolio of income trusts. The portfolio of income trusts was modeled by Faircourt, with income trusts that are expected to be included in the revised S&P TSX Index being adopted later this year.

This note structure was selected to enhance an investors’ participation in the portfolio’s returns during positive periods while reducing volatility during lower performance periods.

On a monthly basis, investors in the notes will receive the equivalent of 75% of the actual underlying portfolio’s distributions, if any, including distributions paid on the leveraged exposure to the portfolio. In addition, the remaining 25% of the underlying portfolio’s distributions including the amounts paid from the leveraged exposure to the portfolio will be reinvested in the portfolio.

At maturity, Bank of Montreal will return to investors at least their original principal. Distributions received during the term of the notes do not diminish the principal protection at maturity.

Faircourt Principal Protected Income Trust Deposit Notes, Series I are fully eligible for registered plans. Series 1 is available through most financial advisors until April 29, 2005. The issue price is $100 per note, with the minimum investment being $2,000.