Northwest Funds and The Ethical Funds Company announce the successful closing of the transaction creating Northwest & Ethical Investments L.P.

The new partnership is poised to become one of the fastest growing investment companies in the country

Montreal, Toronto and Vancouver, January 10, 2008 – Northwest Funds (“Northwest”) and Ethical Funds (“Ethical”) are pleased to announce the successful completion of the transaction to create a strategic partnership between the two companies. Initially announced on September 19, 2007, the partnership has created the new company Northwest & Ethical Investments L.P. (“Northwest & Ethical”) under which both the Northwest Funds and Ethical Funds brands will continue to operate. Northwest & Ethical became responsible for managing the assets of both firms as of December 28, 2007.

The partnership creates a national investment firm with approximately $5.5 billion in assets under management and positions Northwest & Ethical to be one of the fastest growing investment companies in Canada. This joint venture will also ensure Northwest Funds and Ethical Funds have access to the resources they need to expand leadership positions in their respective categories.

“The collaborative work that has been ongoing since the September announcement has only confirmed the outstanding growth prospects that both firms will enjoy as partners.” said Don Rolfe, Chief Executive Officer of the new company.

“Access to each other’s distribution networks, in addition to those of parent companies the Desjardins Group and Canada’s Provincial Credit Union Centrals, will be a key contributor to that growth, and future business opportunities should raise the potential even further,” continued Rolfe.

The Board of Directors of the new company is comprised of equal representation from Desjardins Group and the Provincial Credit Union Centrals:

DESJARDINS

• Pierre Tardif (Chair) – Vice Chair of the Board, Fédération des caisses Desjardins du Québec
• Pierre Gingras – President of Placements Moras Inc.
• Bruno Morin – Senior Vice President, Investment Funds and Trust Services
• Marcel Pepin – Senior Vice President, Strategic Planning and Canadian Business Development
• Jocelyne Poulin – General Manager, Caisse Populaire Desjardins des
  Milles-Iles

• Debbie Lane – Executive Vice President, Credit Union Central of Saskatchewan
• Bob Leshchyshen – Director, Buduchnist Credit Union
• J. Ross Montgomery – Director, Credit Union Central of British Columbia and Director, Westminster Savings Credit Union
• Al Morin – President Assiniboine Credit Union
• Bernie O’Neil – President & CEO, Credit Union Central of Nova Scotia

In addition to Rolfe, the Northwest & Ethical management team is led by Michael Butler, serving as President and C.O.O. 2

Based in Toronto, with offices in Vancouver and Montreal, the transition of all operations to one platform is anticipated to be complete by the Fall of 2008.

Northwest & Ethical Investments L.P.
Northwest & Ethical Investments Limited Partnership is a national investment firm with approximately $5.5 billion in assets under management. Northwest & Ethical Investments L.P. is owned 50% by the Provincial Credit Union Centrals and 50% by Desjardins Group. Northwest & Ethical Investments L.P. is an interim corporate name until a permanent brand name is approved
by the Board of Directors.

Contact for interviews with Don Rolfe: (for media only)

Jane Mitchell
Tel.: (604) 714-3843
Cell.: (604) 763-7665
jmitchell@ethicalfunds.com

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