Sun Life Financial closes sale of Clarica’s U.S. operations to Midland National Life Insurance Company

TORONTO, Jan. 7, 2003 – Sun Life Financial Services of Canada Inc. (NYSE/TSX:SLF) announced today that it has closed the previously announced sale of Clarica Life Insurance Company’s (Clarica) U.S. operations, Clarica U.S., Inc. (Clarica U.S.), to Midland National Life Insurance Company. Sun Life Financial completed its acquisition of Clarica on May 29, 2002.

Clarica U.S. lines of business include individual life insurance and annuity solutions. The company serves its 225,000 U.S. customers from offices in Fargo, North Dakota. The company has approximately 200 employees.

Midland National Life is a provider of life insurance and annuity products and has key operations in Sioux Falls, South Dakota and Des Moines, Iowa. It is owned by Sammons Enterprises, Inc. of Dallas, one of the largest privately owned companies in America.

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 1865, 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 September 30, 2002 the Sun Life Financial group of companies has total assets under management of CDN $347 billion.

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