Industrial Alliance Announces the Issuance of a $100 Million Debenture underwritten by the Solidarity Fund QFL

    QUEBEC CITY, Aug. 4 /CNW Telbec/ - Industrial Alliance Insurance and
Financial Services Inc. ("Industrial Alliance" or "the Company") announced
today the issuance, through its wholly-owned subsidiary Corporation Financière
L'Excellence Ltée, of a $100 million unsecured subordinated debenture. This
debenture was underwritten by the Solidarity Fund QFL, a development capital
    Corporation Financière L'Excellence Ltée is a company which controls
Excellence Life Insurance Company and the brokerage companies with which it is
associated. These companies were acquired by Industrial Alliance on
January 31, 2008.
    The debenture was issued on August 1, 2008. It has a duration of fifteen
years and matures on August 1, 2023. A first tranche of $12 million will be
used to refinance the debenture issued to the Solidarity Fund QFL by
Corporation Financière L'Excellence Ltée in 2006, and underwritten by the
Solidarity Fund QFL, whereas a second tranche of $88 million will be used for
the general corporate purposes of Corporation Financière L'Excellence Ltée and
to finance Industrial Alliance subsidiaries operating in the individual wealth
management and insurance sectors.
    The $12 million tranche pays a fixed annual rate of 7% for the first five
years, a fixed annual rate of 5.630% for the next five years and a variable
annual rate (adjusted on the last day of each quarter) equal to the 90-day
Bankers' Acceptance Rate, plus 100 basis points, for the last five years. The
additional tranche of $88 million pays a fixed annual rate of 5.630% for the
first ten years, and a variable annual rate (adjusted on the last day of each
quarter) equal to the 90-day Bankers' Acceptance Rate, plus 100 basis points,
for the last five years.
    Corporation Financière L'Excellence Ltée cannot redeem the debenture
prior to its tenth anniversary, after which time, with the approval of the
Autorité des marchés financiers, it will be able to redeem it in whole only,
without penalty. The Solidarity Fund QFL cannot require the reimbursement of
the debenture before it matures, except in particular circumstances and
subject to approval by the Autorité des marchés financiers, which allows
Industrial Alliance to qualify the debenture as Tier 2 capital on a
consolidated basis.
    According to pro forma data as at June 30, 2008, the debenture increases
Industrial Alliance's solvency ratio from 185% to 195%. The debt ratio
increases from 14.2% to 17.9%, if the debentures alone are included in the
debt items, and from 19.8% to 23.2%, if the preferred shares are added. The
excess capital will increase from $100 million to $198 million.

    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 fourth largest life and health
insurance company in Canada, Industrial Alliance is at the head of a large
financial group, which has operations across Canada as well as in the Western
United States. Industrial Alliance contributes to the financial wellbeing of
over 3 million Canadians, employs more than 3,300 people and manages and
administers over $51 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.

    About the Solidarity Fund QFL

    With net assets of $7.3 billion as at May 31, 2008, the Solidarity Fund
QFL is a development capital company that through its RRSP channels the
savings of Quebecers into investments in all sectors of the economy to help
create and maintain jobs and to further Québec's economic growth. The Fund is
a partner, either directly or through its network members, in 1,881 companies.
It currently has more than 575,000 shareholders and has helped, on its own or
with other financial partners, to create, maintain and protect over
126,000 jobs. For more information, visit

    Forward-looking Statements

    This news release may contain forward-looking statements about the
operations, objectives and strategies of Industrial Alliance, as well as its
financial situation and performance. The forward-looking nature of these
statements can generally, though not always, be identified by the use of words
such as "may," "expect," "anticipate," "intend," "believe," "estimate,"
"feel," "continue," or other similar expressions, in the affirmative, negative
or conditional. Unless otherwise indicated, any forward-looking information
that presents prospective results of operations, financial position or cash
flows was approved by management on the date of this news release.
    Forward-looking statements entail risks and uncertainties that may cause
the actual results, performance or achievements of Industrial Alliance to
differ materially from the future results, performance or achievements
expressed or implied by the forward-looking statements. Factors that could
cause the Company's actual results to differ from expected results include
changes in government regulations or tax laws, competition, technological
changes, global capital market activity, interest rates, changes in
demographic data, changes in consumer behaviour and demand for the Company's
products and services, catastrophic events, and general economic conditions in
Canada or elsewhere in the world. A description of significant factors that
could affect forward-looking statements is contained in the Management's
Discussion and Analysis section of the Company's most recent annual report.
    This list is not exhaustive of the factors that may affect any of
Industrial Alliance's forward-looking statements. These and other factors must
be examined carefully and readers should not place undue reliance on
Industrial Alliance's forward-looking statements. Where the forward-looking
statements are presented as guidance regarding the future financial results of
Industrial Alliance, they are provided to help investors understand the impact
on earnings of the Company's current plans and objectives. The Company may
also provide objectives from time to time. An objective should be taken as a
statement of management's goals in managing the Company, and not necessarily
as a forecast that the objective will be met.
    Industrial Alliance is not obligated to revise or update these
forward-looking statements to reflect events, circumstances or situations that
occur after the date of this news release, whether foreseeable or not, except
as required by applicable securities legislation.

For further information:

For further information: Michel Naud, Manager, Investor Relations,
Industrial Alliance Insurance and Financial Services Inc., (418) 684-5000,
ext. 4137,; Mario Tremblay, Vice-President, Public
Affairs and Communications, Solidarity Fund QFL, (514) 850-4892, cellular:
(514) 919-2516,

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