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Industrial Alliance Reassures Clients with Investments in Funds Managed by the Norshield Financial Group

Quebec City,

News Release

Industrial Alliance Insurance and Financial Services Inc. wishes to inform its clients that they may continue performing transactions with funds managed by the Norshield Financial Group (Norshield), despite yesterday’s announcement that Norshield was suspending redemptions on its core hedge fund products. Norshield, one of Industrial Alliance’s external fund managers, manages two of the Company’s segregated hedge funds: the Multi-Strategy Fund and the Global Trading Fund.

"It’s business as usual for our clients," stated Yvon Charest, President and Chief Executive Officer of Industrial Alliance. "Our clients have no reason to worry. We will continue to ensure the liquidity of funds, as before, according to the conditions stipulated on the contracts. We have no reason to believe that the capital invested in these funds is in any danger."

The Multi-Strategy Fund and the Global Trading Fund, which are managed by Norshield, are offered by Industrial Alliance and its subsidiaries, Industrial Alliance Pacific Insurance and Financial Services and the National Life Assurance Company of Canada. As at March 31, 2005, clients from the three companies had a total of $80.2 million invested in these two hedge funds.

About Industrial Alliance
Founded in 1892, Industrial Alliance Insurance and Financial Services Inc. is a life and health insurance company that offers a wide range of life and health insurance products, savings and retirement plans, RRSPs, mutual and segregated funds, securities, auto and home insurance, mortgage loans and other financial products and services. The fifth largest life and health insurance company in Canada, Industrial Alliance is at the head of a large financial group – the Industrial Alliance Group – which has operations across Canada. Industrial Alliance insures over 1.7 million Canadians, employs over 2,600 people and manages and administers $30.0 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
Office phone: (418) 684-5275
Cell phone: (418) 576-3624