Clarington and Industrial Alliance to Combine Mutual Fund Operations

ClaringtonFunds Inc. ("Clarington") and Industrial Alliance Fund Management Inc. ("IA Fund Management") today announced that they expect to integrate their business operations effective on or soon after June 30, 2006. The change is subject to regulatory approval.

To reflect the integration of its business with that of Clarington, IA Fund Management will be renamed "IA Clarington Investments Inc." ("IA Clarington") at the time of the integration. "The new name reflects Industrial Alliance's commitment to build on Clarington's strong platform, which is now backed by the full strength and resources of one of Canada's leading diversified financial institutions," said David Scandiffio, President of Clarington and IA Fund Management.

At the time of the integration, the manager of all of the mutual funds managed by Clarington (the "Clarington Funds") will change to IA Clarington. The change of manager will not affect the existing portfolio advisory relationships for any of the Clarington Funds.

"We are pleased to announce that the integration of Clarington and IA Fund Management is moving ahead as planned. One of the important benefits of this partnership is an even deeper product selection and access to top-quality money managers for all our clients. We are on track to provide full exchangeability across the fund line-ups by the end of the summer," said Scandiffio.

Each of Clarington and IA Fund Management is a subsidiary of Industrial Alliance Insurance and Financial Services Inc.