Industrial Alliance Launches the ATTITUDE Portfolios: a New Generation of Life Cycle Funds for Members of Group Retirement Plans

QUEBEC CITY, June 28 2007 – Industrial Alliance Insurance and Financial Services Inc. is pleased to announce the introduction of an innovative investment solution for the members of its group retirement plans: ATTITUDE portfolios. The ATTITUDE portfolios stand out from the majority of comparable products offered on the market by combining two essential factors in investment: the investment horizon and the investor profile. Industrial Alliance is a pioneer in the field, since it was the first financial institution to offer such a combination.

“For several years, professionals in the financial field have been insisting on the importance for each member to determine their investor profile and make an investment choice that corresponds to them,” stated Lucie Lachance, Director, Actuarial and Marketing Services, Group Pensions. “Yet this fundamental concept in investments is left out of most of the life cycle funds offered on the market, since most of them only take the investment horizon into account. The ATTITUDE portfolios made up for this deficiency by integrating this determining factor which is the investor profile before any other product.”

The ATTITUDE portfolios are specially designed to optimize returns in peace of mind. The combined effect of the investment horizon and investor profile ensure members a worry-free investment.

The ATTITUDE portfolios propose an asset allocation that evolves over time according to the investment horizon, which is determined according to the member’s age and a target retirement date. Hence, they aim to optimize the growth possibilities at the beginning of the member’s career, then gradually become more conservative as retirement approaches in order to preserve the capital.

The investor profile reflects the member’s personal financial situation, tolerance to market fluctuations and investment knowledge – factors that differentiate the member from other members who have the same investment horizon. Based on criteria specific to them, members can choose from five profiles that vary from “Conservative” to “Aggressive.” If the member’s situation changes over time and the investor profile evolves, the assets can always be transferred to another portfolio that has a more suitable level of risk.

A target is set according to these two factors and the asset allocation is periodically rebalanced to correspond to it at all times. Members are thus assured that their investment will remain consistent with the parameters that they have personally selected.

To add another dimension to this flexibility, through the ATTITUDE portfolios, Industrial Alliance offers the possibility to build customized portfolios to meet the specific needs of a group of members. Based on their preferences, clients can determine the fund managers, funds and their respective distribution in each portfolio, as well as the investor profiles and retirement dates.

Finally, by combining the visions and strategies of several managers, the ATTITUDE portfolios also aim to generate a higher return at a lower risk. Industrial Alliance regularly performs a strict evaluation of the various investment funds to make sure that the managers still meet the Company’s criteria.

The launching of the ATTITUDE portfolios is further proof of Industrial Alliance’s commitment to innovation, flexibility, accessibility and service, four criteria that make the Company stand out.

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, which has operations across Canada as well as in the western United States. Industrial Alliance contributes to the financial well-being of over 3 million Canadians, employs more than 2,800 people and manages and administers $50 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.