CI Mutual Funds Inc. and Skylon Advisors Inc. today announced the launch of Bank of Montreal CI C.A.P.I.T.A.L. Deposit Notes, callable class, series 1. The notes offer investors the growth potential of two CI mutual funds combined with 100% principal protection.

The notes are issued by Bank of Montreal and provide a return over a five-year period linked to the performance of a portfolio equally divided between CI Canadian Investment Fund and Signature High Income Fund.

“This RRSP season, CI C.A.P.I.T.A.L. Deposit Notes give investors the best of two worlds,” said David McBain, president and CEO of Skylon Advisors, which developed and is marketing the notes in co- operation with CI. “The notes offer a guarantee of principal and the performance potential of two leading funds – both of which were recognized for their excellence and outstanding portfolio management at the 2004 Canadian Investment Awards.”

CI Canadian Investment Fund, led by Kim Shannon, has achieved first-quartile results over the one, three, five and 10-year time periods ending November 30, 2004 and has the top five-star rating from Morningstar Canada. The fund was recently named Canadian Equity Fund of the Year for 2004.

Signature High Income Fund, managed by Ben Cheng and Matt Shandro, was named the 2004 Canadian Income Trust Fund of the Year. The fund invests in a diverse portfolio of high-yielding securities ranging from income trusts to corporate bonds.

When the notes mature on or about March 15, 2010, investors will be repaid their principal and interest, if any, based on the performance of the portfolio of the two funds. There are no restrictions over the full life of the notes on their growth potential. Bank of Montreal can redeem the notes after two-and-a-half years at a price that will give investors the equivalent of an attractive annual compounded rate of return of 8%.

The notes are fully eligible for registered plans, and are available through most financial advisors until March 4. The issue price is $100 per note, with the minimum investment being $2,000.