MONTREAL, TORONTO and VANCOUVER — Poised to become one of the fastest growing mutual companies in Canada, the country's Provincial Credit Union Centrals and Desjardins Group have come together to increase the growth of The Ethical Funds Company and Northwest Mutual Funds Inc.

The partnership creates a national investment firm with $5.5 billion in assets under management. Northwest Funds and Ethical Funds will be owned 50% by the Provincial Credit Union Centrals and 50% by Desjardins Group, the largest integrated cooperative financial group in Canada, with more than $143 billion in assets. The products of both companies will continue to be offered under their own corporate brands and through their existing networks. In addition they will also be promoted through the other partner's distribution network. Pending regulatory approval, the transaction is expected to close by the end of 2007.

Ethical Funds and Northwest Funds unit holders, as well as the caisses populaires, credit union and independent advisor networks stand to benefit from a larger team of investment managers and that economies of scale generated by the common management of both fund families on one technological platform will work to eventually lower management expense ratios for the mutual funds.