Industrial Alliance and FundEX Investments consolidate their partnership in order to accelerate their growth in the mutual funds sector

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QUEBEC CITY, Sept., 2003 – Industrial Alliance Insurance and Financial Services Inc. (Industrial Alliance) and FundEX Investments Inc. (FundEX) announced an agreement today under which Industrial Alliance will increase its ownership of FundEX from 25% to 75%. This transaction follows an initial agreement announced by the two companies in June 2002 under which Industrial Alliance acquired 25% of FundEX shares. Today’s agreement also provides Industrial Alliance with a purchase option and FundEX shareholders with a sale option of all remaining FundEX shares. Half of these options can be exercised as of two years following the closure of the agreement while the remaining half can be exercised three years after the agreement. This transaction is subject to regulatory approval.

“For us, this partnership is a natural extension of the agreement concluded by our two companies last year,” commented David Vowles, President and CEO of FundEX. “In recent months, we have been able to establish one of the best compliance structures in the industry, which has in turn allowed our associates to pursue their business development in total confidence. FundEX will now have access to additional resources and greater expertise as well as an expanded range of financial products and services with which to better serve our clients. Industrial Alliance also has many years of experience in the distribution of financial products through independent and autonomous distributors and has always made the quality of its relationship with its representatives one of the key elements of its success.”

FundEX Investments is an independent mutual fund dealership that was created in 1995. Based in Markham, Ontario, the company relies on a distribution network of close to 400 representatives who market their products primarily to high-income clients. The market value of FundEX’s assets under administration is evaluated at some $3.5 billion.

Today’s agreement marks the fourth transaction by Industrial Alliance in the mutual funds sector since it entered this market three years ago. The agreement brings Industrial Alliance’s total mutual fund assets under administration to close to $4.5 billion and will allow the Company to become a major distributor of mutual funds in Canada.

“This transaction moves us closer to our strategic objective of becoming a leading distributor of financial products in Canada,” stated Normand P�pin, Executive Vice-President of Industrial Alliance. “Thanks to the contribution of FundEX’s associates, who are among the most experienced in the country, this acquisition also allows us to broaden our distribution capacity that already rests on one of the largest and most diversified networks in Canada.”

About Industrial Alliance

Industrial Alliance is a life and health insurance company that offers a full line of insurance products and financial services. Created in 1892, Industrial Alliance is now the parent company of a large financial group with operations across Canada. The sixth largest life and health insurance organization in Canada, Industrial Alliance insures more than 1.5 million Canadians, employs over 2,100 people and manages $17.9 billion in assets. Industrial Alliance stock is listed on the Toronto Stock Exchange, under the ticker symbol IAG. Industrial Alliance is one of the 100 largest public companies in Canada.