News Releases

GGOF Announces Principal Protected Deposit Notes Offering

Guardian Group of Funds Ltd. (GGOF) today announced the launch of Bank of Montreal GGOF C.O.R.E. Protected Deposit Notes based on the performance of a Fund Portfolio which is intended to replicate the total return of GGOF Dividend Growth Fund. Investors in the Deposit Notes can participate in up to 200 per cent of the performance of this portfolio, which will be managed by Jones Heward Investment Counsel Inc.

The Deposit Notes offer a number of compelling features. They use a dynamic asset allocation strategy that can provide up to 200 per cent exposure to dividend-paying stocks in order to enhance returns. At the same time, the Deposit Notes provide investors with the comfort of knowing that 100 per cent of their principal is protected if held to maturity by Bank of Montreal as issuer. With a maximum all-inclusive annual fee of 2.60 per cent, the Deposit Notes are very competitively priced and are available in three Classes for greater choice in meeting individual investor needs:

The Total Return Class, with its 6-year term, is most suitable for investors seeking long-term capital growth. All the Fund Portfolio distributions will be notionally reinvested;
The Yield Class, with a 7.5-year term, is most suitable for investors seeking regular monthly income. It will provide potential distributions beginning in June 2007. The distribution rate, which will be reset every six months, equals 50 per cent of the portfolio's return, if any, during the preceding six-month period; and
The R.O.C. Class, with its 7.5-year term, is most suitable for investors seeking regular monthly distributions and tax deferral. It will provide potential for regular monthly distributions in the form of return of capital beginning in June 2007 using the same distribution rate as the Yield Class.

“GGOF Dividend Growth Fund, with its strong long-term track record, is an excellent core holding for investors seeking long-term capital growth. The portfolio of dividend-paying stocks whose performance intends to replicate the total return of GGOF Dividend Growth Fund will also be managed with a similar mandate by Jones Heward. The addition of a dynamic asset allocation strategy and the availability of principal protection at maturity only serve to make it that much more appealing,” said Gavin Graham, GGOF's Chief Investment Officer. “With their very competitive pricing and availability in three different Classes, the Deposit Notes have been structured to appeal to as wide an investor audience as possible.”

GGOF provides investors with a full product line of 33 mutual funds, diversified by asset class, geographic region and capitalization. GGOF, with $6.0 billion of mutual fund assets under management at August 31, 2006, offers its funds exclusively through financial intermediaries.

GGOF is a member of BMO Financial Group and part of the organization's Private Client Group. BMO's Private Client Group provides integrated wealth management services in Canada and the United States and had total assets under management and administration and term investments of $280.1 billion as at July 31, 2006.

- 30 -

Sales commissions, service fees, management fees and expenses all may be

associated with mutual fund investments. Please read the prospectus before investing in any of the funds referred above. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

This release is for information purposes only and does not constitute an offer to sell or a solicitation to purchase the Deposit Notes or investment advices. Investor should read the Information Statements and discuss with their advisor before making any investment decisions. The fluctuation of the value of the Fund Portfolio will directly impact the return, if any, on the Deposit Notes at maturity. The distributions from the Fund Portfolio will directly impact the interest paid, in the case of the Yield Class, and principal repaid, in the case of the R.O.C. Class, in any year prior to maturity. In addition, the return payable at maturity on the R.O.C. Class will be reduced by a percentage of the amounts received prior to maturity pursuant to a formula set out in the Information Statement. It is possible that no return will be paid on the Deposit Notes. Sales prior to maturity may be subject to an early trading charge.