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Industrial Alliance Announces Dividend On Preferred Shares

Quebec City,

News Release

Following the issue of $125 million in Non-Cumulative Class A Preferred Shares Series B, which closed on February 24, 2006, Industrial Alliance Insurance and Financial Services Inc. today announced an initial dividend of $0.1118 per Non-Cumulative Class A Preferred Share Series B. The dividend is payable on March 31, 2006 to shareholders of record on March 15, 2006.

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 as well as in the Northwestern United States. Industrial Alliance insures over 2 million Canadians, employs more than 2,700 people and manages and administers over $38 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