Ms. Grace Pollock reports

INDUSTRIAL ALLIANCE ANNOUNCES THE REDEMPTION OF NON-CUMULATIVE CLASS A PREFERRED SHARES SERIES E

Industrial Alliance Insurance and Financial Services Inc. intends to redeem, on Dec. 31, 2014, all of its non-cumulative Class A preferred shares Series E then outstanding. The redemption price will be $26 for each Series E preferred share less any tax required to be deducted and withheld by Industrial Alliance. There are four million Series E preferred shares outstanding as of today. A formal notice and instructions for the redemption of the Series E preferred shares will be sent to all shareholders in accordance with the rights, privileges, restrictions and conditions attached to the Series E preferred shares.

Separately from the redemption price, the final quarterly dividend of 37.5 cents per Series E preferred share will be paid in the usual manner on Dec. 31, 2014, to shareholders of record on Nov. 28, 2014. After the Series E preferred shares are redeemed, holders of Series E preferred shares will cease to be entitled to distributions of dividends and will not be entitled to exercise any rights as holders other than to receive the redemption price and the final quarterly dividend described above.

We seek Safe Harbor.