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Industrial Alliance Sends the Notice of Convocation to its Upcoming Annual Meeting and Publishes its 2004 Annual Report

Quebec City,

News Release

Industrial Alliance Insurance and Financial Services Inc. began sending its Information Circular to shareholders and participating policyholders this week, inviting them to attend the Company’s next General Annual and Special Meeting that will take place on Wednesday, May 4, 2005, at 2 p.m. at the Fairmont Le Château Frontenac Hotel in Quebec City. The Information Circular is being sent to over 90,000 shareholders and close to 80,000 participating policyholders.

The Annual Meeting will provide shareholders with an opportunity to vote on a resolution aimed at subdividing the Company’s common shares on a two-for-one basis. This year’s meeting also marks the departure of Raymond Garneau, who is retiring from his position as Chairman of the Board. The distribution of the Information Circular equally signifies the publication of the Company’s 2004 Annual Report whose theme, Making Strides in a Consolidated Environment, testifies to the Company’s strong growth over the course of the last year.

Subdivision of Common Shares
During the Company’s Annual Meeting, shareholders will be asked to vote on a resolution aimed at subdividing Industrial Alliance’s common shares. The resolution stipulates that each issued and outstanding common share be subdivided into two new common shares. If the resolution is passed, the subdivision will double the number of issued and outstanding shares and reduce the price at which common shares may be acquired. The Company believes that the proposed subdivision is in the best interest of both shareholders and Industrial Alliance, in that the reduced price per share should favour a more active trading of the Company’s common shares.

If the resolution is accepted, the subdivision of common shares will take effect on a date to be determined by the Company and pursuant to Toronto Stock Exchange regulations. As at February 18, 2005, Industrial Alliance had a total of 39,746,655 issued and outstanding common shares.

Changes in the Board of Directors
The Annual Meeting also marks the retirement of Raymond Garneau, who is stepping down from his position as Chairman of the Board because he has reached the maximum age specified by Company regulations for serving on the Board of Directors. The Board has announced its intention to appoint John LeBoutillier to succeed Mr. Garneau as Chairman of the Board. Subject to Mr. LeBoutillier’s re-election as a board member by shareholders at the annual meeting, his appointment is expected to take place during a board meeting that will be held immediately after the annual meeting. A joint news release pertaining to Mr. LeBoutillier’s pending appointment was also issued today and is available on Industrial Alliance’s corporate website at www.inalco.com.

2004 Annual Report
The Company has also just published its 2004 Annual Report, the theme of which is Making Strides in a Consolidated Environment. This theme was chosen because it underscores Industrial Alliance’s overall results and achievements in 2004 that once again confirm the Company’s ability to outdo itself, regardless of the challenges, and to quietly continue making gains in an increasingly competitive environment.

In addition to a message from the Chairman of the Board, which presents an overview of the Company’s evolution from the time Mr. Garneau became President of Industrial Alliance a little over 16 years ago, and a message from the President and Chief Executive Officer, the 2004 Annual Report also contains a description of the Company’s sectors of activity as well as management’s discussion and analysis (MD&A) and Industrial Alliance’s consolidated financial statements.

Industrial Alliance’s 2004 Annual Report and Information Circular are available on the Company’s corporate website at www.inalco.com under Investor Relations. You may also view these documents on the SEDAR website at www.sedar.com.

Those who wish to obtain a paper copy of the 2004 Annual Report and Information Circular may contact the Industrial Alliance Investor Relations Department, either by phone at (418) 684-5000, extension 5282, or by e-mail at investors@inalco.com.

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 insurance products and financial 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 more than 2,600 people and manages and administers $28.5 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:
Jacques Carrière
Vice-President, Investor Relations
Office phone: (418) 684-5275
Cell phone: (418) 576-3624