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Industrial Alliance Mutual Funds Inc. Announces a Change in Portfolio Advisor for IA Canadian Core Equity Fund, IA Canadian Balanced Fund and IA Credit Suisse Global Equity Fund

Toronto,

News Release

Industrial Alliance Mutual Funds Inc. (IA Mutual Funds) announced today that Industrial Alliance Investment Management Inc. (IA Investment Management) will become the portfolio advisor of the IA Canadian Core Equity Fund, IA Canadian Balanced Fund and IA Credit Suisse Global Equity Fund, effective December 1, 2004.

The two domestic funds will be managed in a similar manner as that used for two of Industrial Alliance Insurance and Financial Services Inc.’s (Industrial Alliance) highly-rated segregated fund mandates, thereby adopting the same winning approach that Industrial Alliance, IA Mutual Funds’ parent company, has applied to its core flagship segregated fund offering.

It was also announced that effective immediately, the IA Canadian Balanced Fund is to be renamed "IA Canadian Diversified Fund", and that IA Mutual Fund’s flagship fund, the IA Canadian Conservative Equity Fund, will continue to be managed by Leon Frazer & Associates, who has steered the fund through over 50 years of top quartile returns at low levels of risk.

"Industrial Alliance has quietly become one of Canada’s most successful domestic equity and fixed income managers. Over 90% of their internally-managed fixed income and domestic equity seg fund assets are outperforming both their seg fund and mutual fund peers," notes David Scandiffio, President and CEO of IA Mutual Funds. "We think these core mandates run by Industrial Alliance’s deeply talented, yet unheralded management team help to round out a very strong domestic equity line-up that is headlined by our Leon Frazer offering."

IA Mutual Funds is also pleased to announce that IA Investment Management has retained Credit Suisse Asset Management LLC, who will continue to act as a sub-advisor on the global mandate. The current investment advisory agreement and the investment sub-advisory agreement pertaining to the IA Credit Suisse Global Equity Fund will be amended to reflect the above-mentioned changes. Otherwise, these agreements will be on substantially the same terms as the existing agreements.

About Industrial Alliance Mutual Funds Inc.
Industrial Alliance Mutual Funds Inc. is a Toronto-based subsidiary of Industrial Alliance Insurance and Financial Services Inc. Created in 2003, IA Mutual Funds is the trustee and manager of the IA Canadian Conservative Equity Fund, IA Canadian Core Equity Fund, IA Canadian Diversified Fund (formerly 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.

About Industrial Alliance Investment Management Inc.
Industrial Alliance Investment Management Inc. is a wholly owned subsidiary of Industrial Alliance Insurance and Financial Services Inc. and therefore an affiliate of IA Mutual Funds. IA Investment Management is registered as an advisor in Ontario under the categories of investment counsellor and portfolio manager. Specializing in the management of core domestic equities and fixed income securities, IA Investment Management manages approximately $5.4 billion in institutional client assets.

About Industrial Alliance Insurance and Financial Services Inc.
Created in 1892, Industrial Alliance Insurance and Financial Services Inc. is a life and health insurance company that offers a broad range of insurance products and financial services. Industrial Alliance is the parent company of a large financial group – the Industrial Alliance Group – which has operations throughout Canada. The fifth largest life and health insurance organization in Canada, the Industrial Alliance Group insures more than 1.7 million Canadians, employs over 2,400 people, and manages and administers $24.7 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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Information:
Rob Taylor
Director, Marketing and Product Development
Telephone: 1-800-268-8882