TMG Financial Products Fixed Income Portfolio Sold toMorgan Guaranty Trust.

WATERLOO, ONTARIO--(BUSINESS WIRE)--June 24, 1997--The Mutual Group announced today that it has appointed Morgan Guaranty Trust Company of New York ("MGT"), a wholly owned subsidiary of J.P. Morgan & Co. ("J.P. Morgan"), as the servicing agent for the fixed income derivatives portfolio of its

affiliates, TMG Financial Products Inc. and TMG Financial Products (Canada) Inc. ("TMGFP"). Under separate agreements, TMGFP anticipates the assignment of its rights and obligations under these derivatives contracts to MGT over the next few months. Under the terms of the arrangement, MGT will immediately assume all market, credit, and operations risk associated with the portfolios.

A similar arrangement with respect to TMGFP's municipal derivatives portfolio is also being discussed with MGT. The terms of these arrangements have not been made public. However, The Mutual Group will account for the termination of these businesses as "Discontinued Operations" when it publishes its second quarter financial statements on July 24.

The Mutual Group had announced several months ago that it was considering a variety of strategic options for its derivatives businesses as it refocusses its activities on the provision of insurance and savings products. Dave MacIntosh, Executive Vice President of The Mutual Group, said "We explored several options, including sale of the business as a going concern, but in the final analysis it was decided to sell the fixed income and municipal portfolios."

Timothy Quinn, Chief Operating Officer of TMGFP, who arranged the transaction and conducted the negotiation added, "We are pleased to award this mandate to J.P. Morgan. We have been impressed from the outset by the high degree of competence, commitment, and professionalism displayed by the J.P. Morgan team, from front to back office. Furthermore, we know that their very strong credit rating and broad market acceptance by counterparties will facilitate the process of assigning transactions to them."

Until those assignments occur, counterparties of TMGFP continue to benefit from the guarantee of The Mutual Life Assurance Company of Canda which is rated AA+ by Standard & Poors for claims paying ability and Aa2 by Moody's Investor Services for financial strength. MGT is currently rated AAA by Standard & Poors and Aa1 by Moody's.

Mutual Life of Canada, the lead company of The Mutual Group, markets a wide range of financial products and services including life insurance, investment products, employee benefits, disability management services, financial planning, annuities and pension plans. The Mutual Group is a leading financial institution in Canada and the United States, with business development underway in the Asia Pacific region.

J.P. Morgan, with US$222 billion in assets, is a global banking firm that serves clients with complex financial needs through an integrated range of advisory, financing, trading, investment and related capabilities. J.P. Morgan is the largest arranger of derivatives transactions in the world according to the International Swaps and Derivatives Association (ISDA). J.P. Morgan is also ranked as the highest quality derivatives house, according to several prominent industry surveys and publications.

CONTACT: Frank Bomben,

The Mutual Group

(519) 888-3900, ext. 6683.