Great-West Lifeco's U.S. subsidiary announces agreement to assume institutional client's 401(k) recordkeeping business



    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
    UNITED STATES/

    Agreement with Franklin Templeton will transfer remaining services for
    approximately 340 plans representing about 64,000 participants

    TSX:GWO

    Readers are referred to the cautionary note regarding Forward-Looking
    Information at the end of this release.

    WINNIPEG, Aug. 1, 2007 /CNW/ - Great-West Lifeco Inc. today announced
that its U.S. subsidiary, Great-West Life & Annuity Insurance Company, has
reached an agreement with Franklin Templeton Investments whereby Franklin
Templeton will transition its 401(k) recordkeeping business to Great-West Life
& Annuity.
    Great-West Life & Annuity's affiliate FASCore, LLC has been supporting
Franklin Templeton's recordkeeping business since 2006. Under the new
agreement, Great-West Life & Annuity will assume additional servicing and
custodial responsibilities for approximately 340 plans, representing about
64,000 participants.
    "This agreement reinforces our position as one of the top retirement plan
providers in the United States," said Raymond L. McFeetors, President and
Chief Executive Officer of Great-West Lifeco. "It demonstrates our commitment
to the corporate retirement plan marketplace, where we've earned a reputation
as an innovative and growing player."
    The transaction, expected to be completed in the fourth quarter of 2007,
will be largely seamless to the transferring plans and their participants, who
will have access to a broader array of products and services. No regulatory
approval is required.
    In addition to its 401(k) business, Great-West Life & Annuity provides a
range of retirement products and services to the corporate, government,
healthcare and education markets, and to institutional clients. It is the
fourth-largest U.S. retirement plan recordkeeper based on total participants,
according to a ranking by Spectrem Group in January 2007. In all, Great-West
Life & Annuity provides 401(k), 401(a), 403(b) and 457 retirement plan
services to 21,000 plans representing approximately 3.5 million participants
and $104 billion USD in assets.
    Products and services are provided by Great-West Life & Annuity Insurance
Company, FASCore, LLC, and First Great-West Life & Annuity Insurance Company
and their subsidiaries and affiliates. Insurance products and related services
are sold in New York State by First Great-West Life & Annuity Insurance
Company of White Plains, New York.

    Great-West Life & Annuity Insurance Company, headquartered in
metro-Denver, serves its customers through a full range of retirement savings
products and services, annuities, life and disability insurance and health
care plans. It is an indirect, wholly owned subsidiary of Great-West Lifeco
Inc. and a member of the Power Financial Corporation group of companies.
    Great-West Lifeco Inc. (TSX:GWO) is a financial services holding company
with interests in the life insurance, health insurance, retirement savings and
reinsurance businesses. Lifeco has operations in Canada, the United States and
Europe through The Great-West Life Assurance Company, London Life Insurance
Company, The Canada Life Assurance Company and Great-West Life & Annuity
Insurance Company. Lifeco and its companies have more than $216 billion in
assets under administration. Great-West Lifeco is a member of the Power
Financial Corporation group of companies.

    Cautionary Note Regarding Forward-Looking Information
    This release contains some forward-looking statements about the Company,
including its business operations, strategy and expected financial performance
and condition. Forward-looking statements include statements that are
predictive in nature, depend upon or refer to future events or conditions, or
include words such as "expects," "anticipates," "intends," "plans,"
"believes," "estimates" or negative versions thereof and similar expressions.
In addition, any statement that may be made concerning future financial
performance (including revenues, earnings or growth rates), ongoing business
strategies or prospects, and possible future Company action, including
statements made in this release by the Company in regards to the anticipated
benefits of the transaction with Franklin Templeton Investments and the
expected completion of the transaction, are also forward-looking statements.
Forward-looking statements are based on current expectations and projections
about future events and are inherently subject to, among other things, risks,
uncertainties and assumptions about the Company, economic factors and the
financial services industry generally, including the insurance and mutual fund
industries. They are not guarantees of future performance, and actual events
and results could differ materially from those expressed or implied by
forward-looking statements made by the Company due to, but not limited to,
important factors such as sales levels, premium income, fee income, expense
levels, mortality experience, morbidity experience, policy lapse rates and
taxes, as well as general economic, political and market factors in North
America and internationally, interest and foreign exchange rates, global
equity and capital markets, business competition, technological change,
changes in government regulations, unexpected judicial or regulatory
proceedings, catastrophic events, and the Company's ability to complete
strategic transactions and integrate acquisitions. The reader is cautioned
that the foregoing list of important factors is not exhaustive, and there may
be other factors listed in other filings with securities regulators, including
factors set out under "Risk Management and Control Practices" in the Company's
Management Discussion and Analysis, which, along with other filings, is
available for review at www.sedar.com. The reader is also cautioned to
consider these and other factors carefully and to not place undue reliance on
forward-looking statements. Other than as specifically required by applicable
law, the Company has no intention to update any forward-looking statements
whether as a result of new information, future events or otherwise.





For further information:

For further information: Marlene Klassen, APR, FLMI, Director, Media &
Public Relations, (204) 946-7705


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