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Industrial Alliance Announces the Redemption of its $50 Million of Series 2 Subordinated Debentures

Quebec City,

News Release

Industrial Alliance Insurance and Financial Services Inc. announced today that it will redeem all of the Series 2 Subordinated Debentures that were issued on June 19, 1996. These Debentures, with a par value of $50 million, bear interest of 8.40% and were to mature on June 19, 2006.

The Subordinated Debentures will be redeemed by means of a cash payment of $110.923 per $100 principal amount of Series 2 Debentures. Under the prospectus published at the time the Debentures were issued, this price was determined according to the yield, for the remaining term to maturity of the Debentures, equal to the Government of Canada Yield plus 0.30% on the business day preceding the date the redemption is authorized. The Company received the approval of the Inspector General of Financial Institutions on November 17, 2003. The redemption will take place on December 22, 2003.

About Industrial Alliance
Industrial Alliance is a life and health insurance company that offers a full line of insurance products and financial services. Created in 1892, Industrial Alliance is now the parent company of a large financial group – the Industrial Alliance Group – which has operations throughout Canada. The sixth largest life and health insurance company in Canada, the Industrial Alliance Group insures over 1.5 million Canadians, employs more than 2,100 people, and manages and administers $18.6 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.

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Jacques Carrière
Vice-President, Investor Relations
Industrial Alliance Insurance and Financial Services
Office: (418) 684-5275
Cell: (418) 576-3624