Sun Life Financial and IBM sign outsourcing agreement

(TORONTO, August 14, 2002) — IBM and Sun Life Financial, Canada�s largest life insurer, today announced the signing of a contract that calls for IBM to provide a wide range of technology services to Sun Life Financial over a seven year period. The contract is estimated at approximately CDN $250 million.

IBM will provide operational services to support Sun Life Financial�s information technology operations in several areas including: Web hosting, mainframe and mid-range server management, e-mail services, support for Lotus Notes applications and network security services. As a result of the relationship, approximately 111 employees will join IBM Global Services.

�With IBM�s strong expertise in financial services and the scale of its operations, the company is uniquely equipped to help ensure that Sun Life Financial�s computing infrastructure can support the needs of our growing business,� said John Wright, Executive Vice-President and Chief Information Officer, Sun Life Financial.

�IBM will provide the technology skills and computing resources Sun Life Financial needs to continue delivering world class financial services to its clients,� said Rick Horton, General Manager, IBM Global Services (Canada). �Working with IBM, Sun Life Financial will achieve cost efficiencies as well as operational excellence.�

About Sun Life Financial

Sun Life Financial is a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Tracing its roots back to 1871, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of June 30, 2002, the Sun Life Financial group of companies had total assets under management of CDN $368.6 billion.

Sun Life Financial Services of Canada Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol “SLC”.

About IBM Global Services

IBM is the world’s leading provider of comprehensive, integrated e-business solutions for the insurance industry. Working directly with its insurance customers, IBM develops and deploys mission-critical technology solutions. Those solutions comprise the full range of IBM capabilities including consulting, software, hardware, research and 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