Industrial Alliance pursues its development in the mutual fund brokerage sector by acquiring Fundtrade

QUEBEC, June 27, 2006 – Industrial Alliance Insurance and Financial Services Inc. (“Industrial Alliance”) and FundTrade Financial Corporation (“FundTrade”), a mutual fund brokerage firm, announced an agreement whereby Industrial Alliance will acquire FundTrade. FundTrade operations will be integrated with FundEX Investments Inc. (“FundEX”), a mutual fund brokerage firm in which Industrial Alliance holds a 91.75% share. The combined operations will continue to operate under the name FundEX, servicing over 450 representatives and administering some $9 billion in assets. This acquisition is subject to regulatory approval.

FundTrade is an independent brokerage firm established in Oakville, Ontario. It offers a wide range of mutual funds and other wealth management products to a retail clientele, primarily in Ontario, Western Canada and the Atlantic Provinces. Founded in 1999 by Christopher Enright and Glenn Butt, FundTrade has grown to sponsor some 215 financial advisors and currently administers over $3.5 billion in assets on behalf of over 45,000 investors. In June 2006, for the second year in a row, FundTrade placed in the top 10 of the “PROFIT 100 Ranking of Canada’s Fastest-Growing Companies” by PROFIT: Your Guide to Business Success magazine.

“The combination of FundEX and FundTrade creates a formidable organization that will be poised to deliver significant benefits to the industry’s best financial advisors and their clients,” said Michael Greer, President of FundEX.

“Industrial Alliance is one of the oldest and most respected public companies in Canada with strong financial resources and a vast experience in the distribution of financial products through independent distributors,” commented Christopher Enright, Managing Director of FundTrade, who will become Executive Vice-President of the combined company.

“While preserving their autonomy, our representatives will now have access to leading-edge technologies and a more complete line of financial products and services, which will allow them to better serve their clientele,” added Glenn Butt, President of FundTrade.

“With the acquisition of FundTrade, we immediately broaden and strengthen our distribution platform and become a pre-eminent force in the independent advisor channel catering to the industry’s top financial advisors and their clients,” stated Normand P�pin, Executive Vice-President of Industrial Alliance. “This transaction will bring increased scale, scope and stability to both mutual fund broker-dealer operations, while yielding significant synergies. We intend to make FundEX/FundTrade the new standard in back-office and compliance services and are committed to helping independent financial advisors to prosper.”

Already recognized as a leader in life and health insurance in Canada, Industrial Alliance resolutely entered the wealth management market at the beginning of the 2000s. As at March 31, 2006, Industrial Alliance was managing $6.0 billion in mutual fund assets through its Industrial Alliance Fund Management Inc. and Clarington Corporation subsidiaries, and was administering $1.5 billion in securities through its Industrial Alliance Securities Inc. subsidiary and $11.1 billion in mutual funds through its Investia and FundEX subsidiaries and, today, FundTrade. Industrial Alliance also manages $8.0 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 life and health insurance products, savings and retirement plans, RRSPs, mutual and segregated funds, securities, auto and home insurance, mortgage loans and other financial products and 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 as well as in the Northwestern United States. Industrial Alliance insures over 2 million Canadians, employs more than 2,700 people and manages and administers over $40 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.