Pacific Life Joins National Bank Financial to Fund Asset Management Finance Corp., Source of...

NEWPORT BEACH, Calif. & MONTREAL -- Pacific Life, one of the largest U.S. insurance companies and a prominent investor in the investment management industry, has joined National Bank Financial (NBF), a leading Canadian full-service investment bank, as a backer of Asset Management Finance Corp.

Newport Beach-based Pacific Life has agreed to invest $60 million, $40 million equity and $20 million subordinated debt, to acquire a significant equity interest in AMF. Pacific Life, which in 1971 launched Pacific Investment Management Co. (PIMCO), today the world's largest manager of fixed income investments, and NBF will own equal interests and will jointly govern AMF. AMF's management also owns an interest in the company. Pacific Life and National Bank Financial will each have two seats on AMF's five-person board of directors. Norton H. Reamer, AMF's president and chief executive officer, also serves on the board. The transaction is effective immediately.

Based in New York and Boston, AMF was formed in October 2003 by National Bank Financial (NBF) and is led by Reamer, the founder and, for 20 years, the CEO of United Asset Management Corp. The business of AMF is to address the capital raising needs of closely held investment management firms by providing innovative solutions that support management's independence and ownership.

"Pacific Life has extensive experience launching entrepreneurial asset management firms," said Glenn Schafer, President of Pacific Life. "Combined with Norton Reamer's leadership and National Bank Financial's commitment, we believe we have the right combination for AMF's success."

"We are delighted to have a partner as capable and as experienced as Pacific Life," said Kym Anthony, president and chief executive officer of National Bank Financial. "We incubated AMF with the expectation that its services will draw great investors as well as farsighted asset management clients. NBF's role regarding AMF is consistent with our North American Financial Institutions Group's strategy of enhancing our offering of advisory, private equity and structured finance solutions, products and services in this space."

"AMF is proud to welcome Pacific Life, with its history of backing innovation and capital formation in the money management industry, as our partner," said Reamer. "In addition to NBF's $30 million equity investment, Pacific Life's investment will provide us with increased financial flexibility and the opportunity to benefit from their long and distinguished record of involvement in asset management businesses. Investment management firm owners have been tremendously receptive to AMF's message and we expect to complete several transactions in the months ahead."

About Asset Management Finance

AMF offers an innovative financing technique for investment management firms seeking funding for owner liquidity, internal equity transfers, expansion efforts, or other capital needs. AMF's unique investment structure (patent pending) provides capital in exchange for an expiring interest in a firm's future gross revenues. AMF will hold passive, non-voting revenue share interests in a diversified group of asset managers. The advisor's management retains complete control and most of the firm's earning power during the transaction term. Management resumes the full benefit of that earning power when AMF's interest expires. Asset Management Finance has offices in New York and Boston. www.AMFinance.com

About Pacific Life

Founded in 1868, Pacific Life provides life and health insurance products, individual annuities, mutual funds, group employee benefits, and offers to individuals, businesses, and pension plans a variety of investment products and services. A FORTUNE 500(R) company, Pacific Life counts 25 of the 50 largest U.S. companies as clients(a) and is a member of IMSA (Insurance Marketplace Standards Association), whose membership promotes ethical market conduct for individual life insurance and annuities. For additional information about Pacific Life, including its current financial strength ratings, visit the company's Web site at www.PacificLife.com.

About National Bank Financial

National Bank Financial is a leading Canadian full-service investment bank, with origins dating back to 1902. National Bank Financial has over 3,100 employees with offices and operations in Canada, Switzerland, the United States and the United Kingdom. The firm offers financial services and products to private and publicly owned corporations and institutional investors, individual investors and government agencies. National Bank Financial has over 100 retail offices across Canada and is the dominant provider of third party brokerage services in the country. www.nbfinancial.com

(a)Data compiled by Pacific Life using the 2004 Fortune 500 list as of April 2004.