Industrial Alliance Concludes Acquisition of American-Amicable

Texas-based Life Insurance Company Expands Platform for Growth in the U.S. Market

Quebec City, July 20, 2010 – Industrial Alliance Insurance and Financial Services Inc. (“Industrial Alliance” or “the Company”) announced today that it has concluded the acquisition of all the outstanding shares of American-Amicable Holding, Inc. (“American-Amicable”). The transaction was announced on April 28, 2010 and closed on July 20, 2010. American-Amicable will operate as part of the Company�s wholly-owned U.S. subsidiary IA American Life Insurance Company (“IA American”).

The addition of American-Amicable, which markets primarily traditional life insurance products, significantly increases the Company�s scale and presence in the U.S. American-Amicable is licensed to sell life insurance in 49 states and territories, and its products are marketed through a national distribution network of more than 6,000 independent agents. IA American, which now has a total of more than 8,200 agents country-wide, will maintain both the American-Amicable platform in Waco, Texas and the IA American base in Scottsdale, Arizona.

The transaction, valued at US$145.3 million including excess capital of US$45 million, was financed from cash on hand. It is expected to be immediately accretive to earnings by $0.05 per share on an annual basis. With the closing, the Company�s solvency ratio now stands at 214%, compared with pro forma 223% at March 31, 2010.

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 fourth largest life and health insurance company in Canada, Industrial Alliance is at the head of a large financial group, which has operations in all regions of Canada, as well as in the United States. Industrial Alliance contributes to the financial wellbeing of over three million Canadians, employs more than 3,500 people and manages and administers over $60 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.