Manulife Financial's Venture Annuity Introduces New Living Benefit And Death Benefit Riders.

Business Editors

BOSTON--(BUSINESS WIRE)--July 12, 2001

The Manufacturers Life Insurance Company of North America (Manulife North America), the annuity division of Manulife Financial Corporation (NYSE: MFC), announced today the introduction of two new riders for the Venture(R) Annuity - the Guaranteed Retirement Income Program II (GRIP II) and the Guaranteed Earnings Multiplier.

GRIP II, the second generation of Manulife North America's Guaranteed Retirement Income Program, guarantees a minimum income pay out during retirement of at least a six percent compound annual return on principal, adjusted for payments and withdrawals, even if the actual contract investment performance is lower. GRIP II includes an automatic "step-up" feature that enables an investor to lock in gains during years when the account value grows higher than the six percent annual rate guaranteed by GRIP II and permanently increase the minimum pay out. There is a ten-year waiting period measured from the contract issue date before the amount guaranteed by GRIP II can be annuitized.(1)

The Guaranteed Earnings Multiplier is an optional death benefit rider designed to help a beneficiary offset possible tax obligations upon the owner's death. The beneficiary receives an additional death benefit equal to 40% of the earnings accumulated within the contract to a maximum of 40% of net payments (ages 0-69). For clients 70 and above, this rider will pay a death benefit equal to 25% of net payments.(2)

"GRIP II and the Guaranteed Earnings Multiplier help clients build and protect retirement assets," said Jim Boyle, president of Manulife North America. "GRIP II guarantees a minimum rate of growth for an investor's portfolio, while our new death benefit rider provides assurance that their beneficiaries will enjoy a greater benefit from their legacy."

Venture Annuity also offers investment in a broad range of asset classes and styles through nearly 60 portfolio options managed by top firms in their respective categories, including:

- A I M Capital Management, Inc.
- Brinson Advisors, Inc.
- Capital Guardian Trust Company (CGTC)
- Cohen & Steers Capital Management, Inc.
- Davis Selected Advisers, L.P.
- The Dreyfus Corporation
- Fidelity(R) Management & Research Company(3)
- Founders Asset Management LLC
- Franklin(R) Templeton(R)(4)
- INVESCO Funds Group, Inc.
- Janus Capital Corporation
- Jennison Associates LLC
- Lord, Abbett & Co.
- Manufacturers Adviser Corporation
- MFS Investment Management(R)
- Miller Anderson & Sherrerd, LLP
- Munder Capital Management
- Pacific Investment Management Company
- Putnam Investment Management, LLC
- Salomon Brothers Asset Management Inc
- SSgA Funds Management, Inc.
- T. Rowe Price Associates, Inc.
- T. Rowe Price International, Inc.
- Wellington Management Company, LLP

"GRIP II and the Guaranteed Earnings Multiplier on Venture provides one of the best combinations of features in the industry," said Robert T. Cassato, president and CEO of Manulife Wood Logan, the marketing and distribution arm of Manulife North America. Manulife Wood Logan provides sales and marketing support for the Venture Variable Products. "With Venture Annuity, retirement-minded investors can remain in the equity markets well into retirement age without the fear of a sudden drop in the performance of their portfolios."

Please call 1-800-344-1029 to obtain a prospectus containing more complete information including charges and expenses on the Venture Annuity with GRIP II and the Guaranteed Earnings Multiplier issued by Manulife North America. Please read the prospectus carefully before purchasing. Venture Annuity, GRIP II and the Guaranteed Earnings Multiplier are not available in all states; product features may vary, subject to state regulations.(5)

About Manulife Financial

Manulife Financial is committed to offering the highest quality annuity, life insurance, pension and tax-deferred college savings products to its U.S. clients. Its family of products has been built around a powerful combination of investment options chosen with the goal of providing risk-adjusted returns and broad diversification across asset classes, investment styles, and asset managers. With its broad product lines, competitive underwriting, excellent ratings, and quality customer service, Manulife Financial is dedicated to providing premium products designed to help create and preserve wealth for its clients.

Manulife Financial is a leading Canadian-based financial services company operating in 15 countries and territories worldwide. Through its extensive network of employees, agents and distribution partners, Manulife Financial offers clients a diverse range of financial protection products and wealth management services. Funds under management by Manulife Financial (Manulife Financial Corporation and its affiliated companies) were US$78.8 billion (Cdn$124.2 billion) as at March 31, 2001.

Manulife Financial Corporation trades as `MFC' on the TSE, NYSE and PSE, and under `0945' on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.

(1) GRIP II guarantees that the amount available for annuitization (the Income Base) will reflect at least a 6% compound annual return, up to age 85, for annuitants age 75 or younger at issue (for annuitants age 76 or older at issue; a 4% annual compound return up to age 85 and 0% thereafter). GRIP II can only be elected at issue and, once elected, is irrevocable. The GRIP II option fee is 0.45% of Income Base, charged on each contract anniversary. The Income Base is not available in cash but can be converted to a lifetime income stream upon annuitization on any contract anniversary after a ten-year waiting period. The level of lifetime income that GRIP II guarantees may be less than the level that would be provided by annuitizing the contract value. Thus, GRIP II should be regarded as a safety net.

(2) The Guaranteed Earnings Multiplier benefit is based on the earnings in the contract value at the time of death. Any death benefit in excess of the contract value is not considered earnings and will not be included in the Guaranteed Earnings Multiplier benefit. If there are no earnings in the contract value at the time of death, the Guaranteed Earnings Multiplier does not pay a benefit. There is an additional fee of 0.20% annually if the Guaranteed Earnings Multiplier is elected. The benefit can only be elected at issue and once elected, it is irrevocable.

(3) Fidelity is a registered trademark of FMR Corp.

(4) Franklin(R) and Templeton(R) are registered trademarks of the Franklin Templeton Group.

(5) Withdrawals may be subject to withdrawal charges and will reduce the death benefit and contract value; the optional riders are reduced on a pro-rata basis for withdrawals. In addition, withdrawals of taxable amounts will be subject to income tax and, if made prior to age 59 1/2, a 10% IRS penalty tax may apply.

Manulife Financial and the block design are registered service marks of The Manufacturers Life Insurance Company and are used by it and its affiliates including Manulife Financial Corporation.