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Industrial Alliance Concludes its Takeover Bid of Aegis and Sascar

Quebec City,

News Release

Industrial-Alliance Life Insurance Company (Industrial Alliance – Toronto Stock Exchange: IAG) announces that, yesterday, it took-up all shares of Aegis Insurance Corporation (Aegis) and its affiliate company, Sascar Management Ltd. (Sascar), two Saskatchewan based companies operating in the credit insurance market among automobile dealers, properly tendered into Industrial Alliance’s friendly takeover bid which was launched on June 14, 2001. The aggregate purchase price to Industrial Alliance was approximately $9.0 million.

The takeover bid was conditional on there being validly deposited at least 90% of the issued and outstanding Class A and B shares of Aegis and at least 90% of the issued and outstanding Class A common shares of Sascar. The offer was open for acceptance until 5:00 p.m. (Saskatchewan time) on July 19, 2001. On taking up of the shares tendered pursuant to the friendly takeover bid, Industrial Alliance acquired 15,100 class “A” shares of Aegis (96.79%) at $44.8718 per share; 39,900 class “B” shares of Aegis (99.75%) at $190.00 per share; and 399 class “A” common shares of Sascar (99.75%) at $2,000.00 per share.

As part of last June’s takeover bid, the shareholders of Aegis and Sascar could elect to receive common shares of Industrial Alliance or a cash amount in payment of their shares. In accordance with the shareholders’ wishes, Industrial Alliance will pay for the shares taken-up by issuing an aggregate of 67,445 common shares of Industrial Alliance at $41.28 per share, for a total of $2,784,129.60, together with cash payments totaling $6,188,434.58.

The balance of the shares of Aegis and Sascar not acquired by Industrial Alliance under it’s friendly takeover bid will be acquired by Industrial Alliance using the compulsory acquisition provisions of the Saskatchewan Business Corporations legislation, or such other means as Industrial Alliance may determine is appropriate, so that Aegis and Sascar become wholly owned subsidiaries of Industrial Alliance.

The acquisition of Aegis and Sascar consolidates Industrial Alliance’s position as a leader in the Canadian credit insurance market among automobile dealers, increasing the Company’s share to over one-third of the market. These operations complement those of Industrial Alliance, which already distributes credit insurance products in the automobile, heavy truck and recreational vehicles market through the SAL Marketing Group of its Western-Canadian subsidiary, IA Pacific Life.

About the Industrial Alliance Group
The Industrial Alliance Group is among the most solid financial institutions in the country, where it is an industry leader in insurance and financial services. The Group has operations across Canada through Industrial Alliance (Quebec City) and its subsidiaries, including IA Pacific Life (Vancouver) and National Life (Toronto). The seventh largest life and health insurance company in Canada, the Group insures over 1.5 million Canadians and has almost 2,000 employees. It has over $14 billion in assets and funds under management. Industrial Alliance’s stock is listed on the Toronto Stock Exchange under the ticker symbol IAG. It is part of the TSE 300 and the TSE 100, making Industrial Alliance one of the 100 largest public companies in Canada.

You can consult all of Industrial Alliance’s financial news releases on the Company’s Web site at www.inalco.com/Investor Relations/Financial news releases.

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Sources and information:
Jacques Carrière
Vice-President, Investor Relations
Office:(418) 684-5275
Cellular: (418) 576-3624