New York (June 28, 2000) - Canada's oldest bank, the Bank of Montreal, signed a 21-year lease for the last remaining large block of commercial space at 3 Times Square, the state-of-the art office building now completing construction in the heart of Times Square on Seventh Avenue between 42nd and 43rd Streets, Jack, Lewis and William Rudin, developers of the project, announced today.

The Bank of Montreal will relocate its operations from 430 Park Avenue to occupy 100,000 square feet on the 26th, 27th 28th, and 29th floors.

"Our mission at 3 Times Square was to present an unparalleled leasing opportunity for world class commercial tenants and retailers in the most famous crossroads in the universe. We welcome the Bank of Montreal to 3 Times Square along with Reuters, Instinet and Bain & Company thus completing the leasing of office space in the tower of the building. We wish to thank Governor George Pataki, Mayor Rudolph W. Giuliani for their vision and leadership in revitalizing the Times Square area and making it an attractive environment for companies to relocate to. In addition, we would also like to thank our joint venture partners, Thomas Glocer, President of Reuters America Inc. and Douglas Atkin, President of Instinet Corporation, and everyone else who has helped make this project a success," said William C. Rudin, President of Rudin Management, the leasing and managing agent for the development.

Reuters will occupy 650,000 square feet making 3 Times Square its U.S. headquarters. The building is scheduled for occupancy in the Fall of 2000.

Governor George E. Pataki said, "The Bank of Montreal's pragmatic decision to invest in the heart of the city's revitalization is based on the State's successful efforts to reduce crime, attract new economic development, and improve New York's quality of life. The bustling 42nd Street -- filled with tourists, families and shoppers, and new corporate offices -- is the culmination of this work and has become symbolic of New York's economic and cultural recovery."

Charles A. Gargano, Chairman of Empire State Development, said, "Rudin's state-of-the-art 3 Times Square building tells the corporate world that New York is at the forefront in developing spaces that meet today's technological demands. Bank of Montreal has confidence doing business in New York, and I applaud Governor Pataki for creating an economic climate where domestic and international companies are thriving and creating new jobs for New Yorkers."

New York City Mayor Rudolph W. Giuliani said: "It's a pleasure to celebrate the Rudins's success in leasing the remaining square-feet of commercial space in the new state-of-the-art Reuters Building at 3 Times Square. This new building, located in the Crossroads of the World, will serve as another example of our success in the redevelopment of Times Square, and will further highlight the area's incredible comeback. I congratulate the Rudins on their success and look forward to the ribbon cutting ceremonies this fall when we open this great new office tower."

As one of Canada's leading financial institutions, the Bank of Montreal required a superior location. Securing space in 3 Times Square, one of New York City's most technologically advanced office towers, was a strategic move that will reinforce a powerful image for a bank of this caliber.

Three Time Square features a highly advanced technological infrastructure housed within a facility that boasts energy saving in excess of 30% compared to typical office buildings. Amenities include a carrier neutral telecommunications backbone, reinforced satellite link areas, high-speed fiber optics, increased fresh air and improved air filtration, and an infrastructure fully-prepared for future fuel cell and technology enhancements.

The Bank of Montreal, Canada's first chartered bank, was founded in 1817. It is the only Canadian bank to provide a complete range of financial services in both Canada and the United States. The Bank of Montreal has long maintained a significant presence in markets in Europe, Latin America, East Asia and the United States and employs more than 32,000 employees worldwide. Since its founding, the Bank of Montreal has grown to possess assets totaling US$161 billion.

Founded more than 70 years ago by Samuel Rudin and his brothers, the Rudin organization has grown to be one of the largest privately held real estate entities in the City of New York. In addition to 22 residential buildings comprising 3,500 dwelling units, the Rudins' portfolio, upon completion of the Reuters Building @ 3 Times Square, will contain more than 10 million square feet of commercial space in 17 buildings.

The Rudins' revolutionary adaptive retrofitting of the former Drexel Burnham Lambert headquarters into the New York Information Technology Center thrust the company into world-wide prominence as the developers at the forefront of providing totally-wired work environments to tenants requiring global connectivity. This legacy was advanced by the Rudins recent opening of the Long Island Technology Center on Sunrise Highway in Great River, New York „ the site of a former Northrop Grumman facility. The LITC is a joint venture with Cogswell Realty Group LLC.

Thirty-two Avenue of the Americas, the landmark, 29-story AT&T worldwide headquarters is the most recent acquisition to join the Rudins' technologically advanced commercial property portfolio. The building will yield 700,000 square feet of leasable space which will be enhanced in ways to enable e-businesses to thrive in the next century. Charter tenants include AT&T, Qwest Communications, Bell Canada, Northeast Optics, Telegis and MCI.

Insignia/ESG's Howard Fiddle, Randi Kaufman, Carol Nelson and Drew O'Mallen represented the Bank of Montreal in the transaction. Louis Somoza of Rudin Management represented the building's owners, a Rudin/Reuters Joint Venture.

Insignia/ESG is one of the largest commercial real estate services providers in the United States, with comprehensive brokerage, property management, fee development, consulting, investment sales and debt placement operations in many of America's top markets, including New York, Chicago, Los Angeles, Boston, Philadelphia, Atlanta, Miami, San Francisco, Phoenix and Washington, DC. Through Insignia Richard Ellis, the company also delivers advanced commercial real estate services in the United Kingdom. Nationally, Insignia/ESG provides service for a property portfolio spanning more than 230 million sq. ft. Insignia/ESG is a subsidiary of Insignia Financial Group, Inc. a publicly traded real estate company listed on the New York Stock Exchange under the symbol "IFS".

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