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Industrial-Alliance Announces a Share Purchase Program and a Dividend Policy

Quebec City,

News Release

The Board of Directors of Industrial-Alliance Life Insurance Company, meeting today in Vancouver, at the head office of The North West Life Assurance Company of Canada, a subsidiary of Industrial-Alliance, adopted a normal course issuer bid and a dividend policy.

Normal course issuer bid
The Board of Directors of Industrial-Alliance Life Insurance Company (the "Company") has authorized the Company to purchase, through an affiliated company, in the normal course of its activities, up to 1.875 million of its Common Shares, representing a maximum of 5% of the issued and outstanding shares. The purchases will be made at market prices, over a maximum period of one year, starting from an initial date to be determined, through the Toronto Stock Exchange in accordance with its by-laws and rules, and subject to regulatory approval. The Common Shares thereby purchased will not be cancelled and will remain available for future use. The Company believes that such a share purchase program is an appropriate means to use the Company´s funds, especially when the market price of its Common Shares does not fully reflect the value of its business, and provides additional flexibility for capital management purposes. Shareholders may obtain without charge a copy of the documents filed with the securities regulator concerning this program by writing to the Legal Department of the Company.

Dividend policy
The Board of Directors has also adopted a policy concerning the payment of dividends to the common shareholders. Under the policy, the dividend rate that will be paid to the common shareholders will be comparable to that of other recently demutualized Canadian companies, i.e. 20% to 30% of the net income. The dividends will be paid quarterly, March 15, June 15, September 15 and December 15 of each year. The dividends will be declared quarterly by the Board. As is indicated in the prospectus of February 3, 2000, the first dividend will be decided during the Board meeting of the month of November 2000.

With the strength of over 100 years of experience, Industrial-Alliance is a life and health insurance company that offers a wide range of insurance and wealth management products. It has operations across Canada, either directly or through its subsidiaries, National Life of Canada and North West Life. Industrial-Alliance also owns a general insurance company, Industrial-Alliance Auto & Home Insurance. Industrial-Alliance is the seventh largest life and health insurance company in Canada.

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Sources and information

Jacques Carrière
(418) 684-5275 (office)
(418) 576-3624 (cellular)

Investors and financial analysts:
Yvon Sauvageau
(418) 684-5058 (office)