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Industrial Alliance Mutual Funds Inc.

Toronto,

News Release

Industrial Alliance Mutual Funds Inc., the manager and trustee of IA Canadian Conservative Equity Fund, IA Canadian Core Equity Fund, IA Canadian Balanced Fund, IA Canadian Bond Fund, IA Canadian Money Market Fund, IA Credit Suisse Global Equity Fund, IA Crystal Enhanced Index America Fund and IA Crystal Enhanced Index World Fund (collectively, the "Funds"), is pleased to announce the approval today by the board of directors of Industrial Alliance Mutual Funds Inc. of the renewal prospectus and annual information form of the Funds which will be filed Monday December 1, 2003.

As part of the renewal process, Industrial Alliance Mutual Funds Inc. announced today that it will amend and restate the annual audited and interim financial statements of the Funds to correct an error in a note to the statements. Note 7 incorrectly stated the management expense ratios of the IA Canadian Balanced Fund (the "Balanced Fund"), Class A Units of IA Crystal Enhanced Index America Fund (the "Class A America Fund") and IA Crystal Enhanced Index World Fund (the "World Fund") for 2002 as 2.56%, 2.41% and 3.21%, respectively and the management expenses ratios without expense waivers/absorptions for such funds as 5.26%, 2.67% and 17.96%, respectively. The management expense ratios for the Balanced Fund, Class A America Fund and the World Fund will be restated as 2.68%, 3.54% and 6.72%, respectively and the management expenses ratios without expense waivers/absorptions in respect of such funds will be restated as 5.08%, 3.99% and 9.92%, respectively. In addition, the comparative management expense ratio for 2001 for the Class F Units of IA Crystal Enhanced Index America Fund was incorrectly stated as 1.87%. The ratio will be restated as 2.87%. Industrial Alliance Mutual Funds Inc. expects to file the amended and restated financial statements with the securities regulatory authorities on December 1, 2003 and will distribute such statements to unitholders as required by applicable law.

About Industrial Alliance Mutual Funds Inc.
Industrial Alliance Mutual Funds Inc. is a Toronto-based subsidiary of Industrial Alliance Insurance and Financial Services Inc. ("Industrial Alliance"), 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 organization in Canada, the Industrial Alliance Group insures more than 1.5 million Canadians, employs over 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 one of the 100 largest public companies in Canada.

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