Manulife Financial and IBM Sign Largest IT Services Contract in Canadian Insurance Industry

TORONTO, April 9 – Manulife Financial and IBM Canada Ltd.
today announced the signing of a definitive agreement that will result in IBM managing
Manulife’s information technology (IT) infrastructure and operations.

The value of this contract is estimated at approximately
CDN$850 million over a 10-year period.

IBM will manage Manulife’s IT infrastructure in support of
the company’s North American operations. This includes: data centres, help desks, desktop
computers, and voice and data networks. The agreement will also involve approximately 400
Manulife employees being transferred to IBM Global Services.

These employees will remain in their current locations in
Canada and northeastern United States. Through the IBM agreement, Bell Nexxia will provide
the support and delivery of local area network (LAN), metropolitan area network (MAN) and
wide area network (WAN) infrastructure, as well as telephony services, to support
Manulife’s Voice and Data Communications requirements.

“Our partnership with IBM will result in both improved
customer service and significant expense management opportunities,” said John Mather,
Executive Vice President and Chief Information Officer of Manulife Financial. “We are
now equipped with a strengthened IT infrastructure that will allow us to deploy technology
that will make Manulife more competitive globally.”

“Manulife is regarded for its operational and customer
focus,” said Rick Horton, general manager, IBM Global Services, IBM (Canada) Ltd.
“IBM will help Manulife serve their customers more effectively by working with them
to achieve their IT objectives.”

“Businesses want to focus on their core activities and
the use of a capable ‘general contractor’ to manage IT contributes to the achievement of
this objective,” added Mr. Horton. “IBM has built a strong outsourcing business
in Canada that reflects customer appreciation for IBM’s trusted name and global reach.
Customers know they can draw on IBM’s vast global resources and deep industry expertise to
help them transform their business.”

Manulife Financial has also agreed to be the premiere
participant in the recently-announced IBM Insurance Solutions Centre (ISC) that will be
centered in Kitchener-Waterloo with operations in Toronto. The ISC will be home to a
collection of some of the best minds and international resources, committed to developing,
deploying and managing cost-effective solutions. This will help insurance companies
address the key business imperatives in the rapidly changing marketplace. IBM’s plans for
the ISC also include working closely with IBM Research and enhancing IBM’s broad research
and technology relationship with the University of Waterloo.

About Manulife Financial

Manulife Financial is a leading Canadian-based financial
services group operating in 15 countries and territories worldwide. Through its extensive
network of employees, agents and distribution partners, Manulife Financial offers clients
a diverse range of financial protection products and wealth management services. Funds
under management by Manulife Financial were Cdn$142.2 billion as at December 31, 2001.

Manulife Financial Corporation trades as ‘MFC’ on the TSE,
NYSE and PSE, and under ‘0945’ on the SEHK. Manulife Financial can be found on the
Internet at

About IBM Global Services

IBM Global Services is the world’s largest information
technology services provider, with approximately 150,000 professionals serving customers
in 160 countries and annual revenue of approximately $35 billion (2001). In Canada, there
are approximately 11,000 IGS employees providing Canadian businesses with the most
innovative IT services in the marketplace today. IBM Global Services integrates IBM’s
broad range of capabilities to help companies of all sizes realize the full value of
information technology. For more information, visit