IGM Financial Inc. Reports Strong Quarterly Results, Increases Dividend

Net income attributable to common shareholders for the six months ended June 30, 2004 was $300.5 million compared to $249.1 million in 2003. Earnings per share were $1.13 compared with 94 cents in 2003, an increase of 20.2%.

For the three months ended June 30, 2004 net income attributable to common shareholders was $152.6 million, compared to $129.4 million in 2003. Earnings per share were 57 cents compared to 49 cents, an increase of 16.3%.

"The second quarter was an eventful one for IGM Financial" said Jeffrey Orr, President and Chief Executive Officer. "The company changed its name to better reflect the evolution and current structure of its business, added an additional source of future growth by completing the acquisition of Investment Planning Counsel and delivered strong financial results to shareholders".

Gross revenues for the first six months of 2004 were $1.04 billion, compared to $915.0 million last year. Gross revenues for the second quarter were $523.5 million, compared to $460.2 million in the prior year. Operating expenses were $598.4 million for the six months and $299.0 million for the quarter compared with $525.6 million and $258.5 million respectively in 2003.

Mutual fund assets under management at June 30, 2004 totalled $79.7 billion, compared to $67.9 billion at June 30, 2003, an increase of 17.4%.

Shareholders' equity at June 30, 2004 was $3.39 billion, compared to $3.22 billion at December 31, 2003. Return on average common equity for the six months was 19.8% compared with 18.1% for the same period in 2003.

INVESTORS GROUP'S OPERATIONS

Year-to-date mutual fund sales were $2.6 billion compared to $2.1 billion in the prior year and mutual fund net sales were $315 million compared to last year's net redemptions of $463 million. Net sales of long-term funds (excluding money market funds) were $243 million compared to net redemptions of $442 million in the prior year.

Mutual fund sales for the second quarter were $1.1 billion compared to $914 million in the prior year. For the quarter, mutual fund net redemptions were $71 million compared to net redemptions of $382 million in 2003 and long-term funds net redemptions were $92 million compared to net redemptions of $340 million in 2003.

"Our Investors Group Consultants and our clients have been responding positively to our many enhancements in the delivery of financial planning, products and services. This is clearly evident in our industry leading and improving levels of asset retention," said Murray J. Taylor, President and Chief Executive Officer, Investors Group Inc.

Investors Group's redemption rate (excluding money market funds) was 9.6% at the end of the quarter, down from 11.3% at the same time last year. The corresponding rate at June 30, 2004 for all other members of the Investment Funds Institute of Canada was 14.8%.

Investors Group's mutual fund assets at June 30, 2004 were $42.5 billion, an increase of 13.1%, compared to $37.6 billion at June 30, 2003.

The number of Investors Group Consultants was 3,207 at June 30, 2004 compared to 3,186 at June 30, 2003.

MACKENZIE FINANCIAL'S OPERATIONS

Year-to-date mutual fund sales were $3.7 billion compared to $2.5 billion in the prior year and mutual fund net sales were $562 million compared to net redemptions of $219 million in the prior year. Net sales of long-term funds (excluding money market and managed yield funds) were $597 million for the period compared to the same amount of sales and redemptions in 2003.

Mackenzie Financial recorded sales of mutual funds of $1.6 billion for the second quarter compared to $1.0 billion for the same quarter last year. Mutual fund net sales for the period were $219 million, compared to net redemptions of $220 million in the prior year. Net sales of long-term funds (excluding money market and managed yield funds) were $192 million for the quarter, compared with net redemptions of $43 million in 2003.

"Mackenzie generated strong sales in the period compared to last year," said James L. Hunter, President and Chief Executive Officer, Mackenzie Financial Corporation. "Mutual funds continue to be the cornerstone of Canadian investors' portfolios and our focus has been to meet investor demand for tax efficiency and capital preservation with innovative investment products.

Mackenzie Financial's redemption rate for long-term funds was 13.5% at the end of June 2004, compared to 12.7% at the end of June 2003. The corresponding rate at June 30, 2004 for all other members of the Investment Funds Institute of Canada was 14.3%.

Mackenzie Financial's mutual fund assets under management at June 30, 2004 were $35.8 billion, an increase of 18.4%, compared to $30.3 billion one year ago.

MACKENZIE LEADERSHIP TRANSITION

The Company also announced today Jim Hunter's decision to retire as President and Chief Executive Officer of Mackenzie in the next few months, at which point he will become the Chairman of the Board of Directors of Mackenzie Inc.

Mr. Hunter has been with Mackenzie since 1992. During this time, Mackenzie has strengthened its leadership position within the mutual fund industry and enhanced its reputation in Canada for providing innovative and high quality products and services to financial advisors and their clients.

Mr. Hunter also managed the company through the process which led to the acquisition of Mackenzie by IGM Financial in 2001, and subsequently played a key role in helping to execute IGM Financial's strategy of realizing substantial financial benefits for shareholders and clients while maintaining Mackenzie as a separate entity with its own management, products, brands, investment management and marketing.

This strategy will continue to be followed by IGM Financial and Mackenzie into the future as they build upon this record of success.

Working with Mr. Hunter, Mr. Orr, President and Chief Executive Officer of IGM Financial, will have responsibility for managing the leadership succession at Mackenzie.

DIVIDENDS

The Board of Directors has declared a quarterly dividend of $0.359375 per share on the Corporation's 5.75% Non-Cumulative First Preferred Shares, Series "A" payable on September 30, 2004 to shareholders of record on August 30, 2004 and has declared an increase of 2 ½ cents per share in the quarterly dividend from 27 ½ cents to 30 cents per share on the Corporation's common shares payable October 29, 2004 to shareholders of record on September 30, 2004.

FORWARD-LOOKING INFORMATION

This Release may contain forward-looking statements about the Corporation, 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 Corporation action, is also a forward-looking statement. 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 Corporation, economic factors and the financial services industry generally. 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 Corporation due to, but not limited to, important factors such 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 Corporation's ability to complete strategic transactions and integrate acquisitions. We caution that the foregoing list of important factors is not exhaustive. The reader is also cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements.

IGM Financial Inc. is one of Canada's premier personal financial services companies, and the country's largest manager and distributor of mutual funds and other managed asset products. Its activities are carried out principally through Investors Group, Mackenzie Financial and Investment Planning Counsel. IGM Financial Inc. is a member of the Power Financial Corporation group of companies.

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Media Note: A live webcast of IGM's Analyst conference call for the Second Quarter 2004 will be held today, Thursday, July 29, 2004, at 2:00 P.M. (ET) at www.investorsgroup.com. Media and interested parties may alternatively choose to listen to today's live analyst teleconference call by dialing 1-800-446-4472 or (416) 695 9753.