Generation Capital And BMO Capital Markets Launch Integrated Energy Principal-Protected Deposit Notes

Attention Business Editors

TORONTO ( SEPTEMBER 18, 2006) — Generation Capital Inc. and BMO Capital Markets announced today the introduction of a new principal-protected investment product for Canadian retail investors. The Bank of Montreal Generation Capital Integrated Energy Protected Deposit Notes Series 1 is a unique new product offering the upside potential of investing in blue-chip energy companies coupled with 100 per cent protection of principal, at maturity.

The note offers investors exposure to a well-structured and balanced investment portfolio that consists of global large-cap integrated oil companies combined with investment-grade corporate bonds.

Generation Capital’s strategy is to offer superior risk-managed products within a principal protected structure.

“The unique structure of principal protection calls for a balanced approach to security selection to maximize opportunities for long-term growth,” said Generation Capital President Levi Folk. He said the company’s specific strategy is as follows:

• Identify long-term sectoral growth trends.
• Select less volatile, dividend-paying companies in that sector.
• Use leverage where appropriate to enhance investor returns.

The 9-year notes will be sold through investment dealers across Canada. The issue price per note is $100. BMO Capital Markets will administer the investment portfolio.

Generation Capital is a new privately-owned financial services company based in Toronto. President Levi Folk is a respected investment analyst and researcher, business writer and television commentator on a range of investment products including mutual funds.

For more information, contact:

Levi Folk,
President, Generation Capital
416-567-8967

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