Industrial Alliance announces the amalgamation of FundTrade with FundEX

QUEBEC CITY, Sept. 1, 2006 – Industrial Alliance Insurance and Financial Services Inc. (“Industrial Alliance”) is pleased to announce that it has obtained all regulatory authority approvals for the acquisition of FundTrade Financial Corp. (“FundTrade”), a mutual fund brokerage firm, and to amalgamate it, today, with FundEX Investments Inc. (FundEX), another mutual fund brokerage firm in which Industrial Alliance holds a 91.75% share.

As mentioned in the news release issued on June 27, the combined companies will continue to operate under the name FundEX. The new FundEX will take over all duties and responsibilities of the two previous entities. The client and financial advisor relationships of the two amalgamated companies will remain unchanged.

This acquisition strengthens Industrial Alliance’s position as a leader in the distribution of mutual funds in Canada through a network of seasoned independent financial advisors. The new FundEX will have over 450 representatives and will administer some $9 billion in 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.