Standard Life Mutual Funds launches two new funds and a brand new F-Series

MONTREAL, July 18, 2005 – Standard Life Mutual Funds Ltd. has expanded its product offering by launching two new funds, the Standard Life Diversified Income Fund and the Standard Life Canadian Equity Focus Fund, as well as a new F-Series.

The Standard Life Diversified Income Fund invests in a broad range of income-paying vehicles – both fixed income and equities – to ensure a well-diversified portfolio. This fund targets investors who seek a complement to their existing portfolio and who want a regular monthly income that is higher than traditional fixed income instruments.

For conservative investors who are looking for a value fund, the Standard Life Canadian Equity Focus Fund invests in a limited number of Canadian companies that have been overlooked by the investor market and are considered undervalued.

In addition, the Standard Life Canadian Dividend Growth and Standard Life Monthly Income Funds are now available as part of the new F-Series at a management fee of 1%.

The new prospectus also includes Portrait Portfolio Funds, a simple and effective investment solution which targets investors looking to deposit $10,000 or more. These four time-saving portfolios are easily matched to each investor’s financial goals and are regularly monitored and rebalanced to ensure they remain on track.

“Once again, Standard Life Mutual Funds, with the introduction of these new product offerings, meets the needs of various market segments, and especially more conservative investors. As well, it capitalizes on the expertise of Standard Life Investments Inc., whose success is based on repeatable, disciplined research and an investment process that’s proven over time,” says Mr. Jordy Chilcott, Senior Vice-President, Sales, Standard Life Mutual Funds Ltd.

In Canada, The Standard Life Assurance Company of Canada and its affiliated companies have $36.1 billion in assets under management and offer a wide range of financial products, including group savings and retirement, group insurance, individual life insurance, savings and retirement, and mutual funds. They also provide portfolio management and real estate and mortgage investment services. Total premium income and deposits reached $4.7 billion in 2004 with over 1.2 million customers. ( )