Industrial Alliance Makes KingsGate its Entry Point into the Ontario Securities Market

TORONTO, March 3, 2005 – Industrial Alliance Insurance and Financial Services Inc. (“Industrial Alliance”) and KingsGate Wealth Management Services Limited (“KingsGate”) announced today that Industrial Alliance, through its securities brokerage subsidiary, Industrial Alliance Securities Inc., has entered into a business development and services agreement with KingsGate that will include the acquisition of certain assets of its securities subsidiary, KingsGate Securities Limited. This transaction, which is subject to approval by regulatory authorities, will allow Industrial Alliance Securities to spearhead its expansion in the Ontario securities market and will bring to KingsGate additional resources to pursue its development strategy.

KingsGate Securities Limited is a full service securities brokerage firm that offers a complete spectrum of portfolio investment management services to over 5,000 account holders. Through this agreement, Industrial Alliance Securities will increase its assets under administration by over 30% and cross the one billion dollar mark to reach $1.2 billion as at December 31, 2004. KingsGate Wealth Management Services, along with all wholly owned subsidiaries, will remain the exclusive property of KingsGate.

“The partnership with KingsGate falls directly within the scope of our development strategy and marks a significant entry point to the Ontario market for Industrial Alliance Securities,” stated Ga�tan Plante, President, Industrial Alliance Securities. “We are looking forward to working with current management of KingsGate to jointly expand the business. The uniquely independent structure of KingsGate is in keeping with the mandate of Industrial Alliance Securities to establish a leadership position through entrepreneurial partners.”

Fred Roberts, co-founder and Chief Executive Officer of the KingsGate Group of Companies stated: “We are quite excited about our new partnership. Working with Industrial Alliance gives us the scale and access to capital needed to successfully compete in this rapidly evolving market. With this partnership in place, our securities channel will continue to foster an independent environment and a rich culture fueled by the strong expertise that a partner of Industrial Alliance’s stature can provide. We will aggressively market in the Ontario region with an eye to the West for growth. We see this new relationship with Industrial Alliance as an opportunity to help us in our recruitment process and, as a hybrid platform, we will be targeting planners, brokers and firms.”

Industrial Alliance began to actively develop the wealth management sector about four years ago. This acquisition will bring the company’s wealth assets comprising mutual funds, securities, private wealth management and institutional management to close to $9 billion under management and administration. Industrial Alliance also manages $5.9 billion in segregated fund assets.

About Industrial Alliance

Founded in 1892, Industrial Alliance Insurance and Financial Services Inc. is a life and health insurance company that offers a wide range of insurance products and financial services. The fifth largest life and health insurance company in Canada, Industrial Alliance is at the head of a large financial group – the Industrial Alliance Group – which has operations across Canada. Industrial Alliance insures over 1.7 million Canadians, employs more than 2,600 people and manages and administers $28.5 billion in assets. Industrial Alliance stock is listed on the Toronto Stock Exchange under the ticker symbol IAG. Industrial Alliance is among the 100 largest public companies in Canada.

About KingsGate Wealth Management Services Limited

Founded in 1999, KingsGate Wealth Management Services Limited is a private parent company to an operating group of companies serving the financial services, risk management and estate planning needs of thousands of Canadians. The KingsGate group includes KingsGate Securities Limited, a full service securities dealer, member of the Investment Dealers Association of Canada (IDA) and of the Canadian Investor Protection Fund (CIPF), KingsGate Insurance Group Limited, a fully licensed insurance broker, and KingsGate Asset Management Limited, a product development and high net worth private client channel.