(December 19 – 18:00 ET) – A newly incorporated company controlled by Michael Lee-Chin, who also controls AIC Ltd., announced today that it is evaluating making a formal cash and share take-over bid for all shares of Mackenzie Financial Corp., or to combine the businesses of AIC and Mackenzie.

AIC says it has signed a confidentiality agreement and a standstill agreement with Mackenzie, and 1450473 Ontario Inc. (“Holdco”) based in Burlington, Ont., has made a proposal to the board of directors of Mackenzie.

AIC says this is not a solicitation to buy or offer securities and there can be no assurance that an offer for the shares of Mackenzie by Holdco or other business combination will occur.

AIC made the announcement to coincide with the public release by Canadian securities regulators of certain regulatory orders obtained by AIC and Holdco.

Assuming successful completion of an offer, AIC says Holdco would be a public company with AIC and Mackenzie as wholly owned subsidiaries, together forming the largest mutual fund company in Canada.

If a transaction occurs, CDP Financial Services, a subsidiary of the Caisse de dépôt et placement du Québec, is expected to be a minority shareholder in Holdco or the combined entity.

AIC says Holdco’s willingness to proceed depends upon satisfactory completion of its due diligence relating to Mackenzie, the negotiation and execution of definitive documentation, and the absence of material adverse developments, among other conditions.

AIC and Holdco have obtained relief from Canadian securities regulators relating to certain regulatory matters affecting a possible offer by Holdco.

This relief enables the AIC Funds holding shares of Mackenzie to accept the Holdco offer if they consider it appropriate to do so. In the event that an offer is made by Holdco, AIC has agreed with the Canadian securities regulators to ensure that its decisions as manager of the AIC Funds with respect to the Mackenzie shares owned by the AIC Funds will be made in conjunction with an independent financial advisor. AIC says the objective of any decision will be to maximize the returns for the unitholders of the AIC Funds.

If the AIC Funds accept shares of Holdco as a part of the consideration for their shares of Mackenzie, the AIC Funds will be required to sell such shares within 24 months (unless later extended or waived by Canadian securities regulators).

@page_break@AIC has also applied for regulatory relief to enable the AIC Funds holding shares of Mackenzie to also be able to accept the offer made for Mackenzie by C.I. Fund Management Inc., if they consider it appropriate to do so.

This relief is required because certain AIC Funds own approximately 18% of the outstanding shares of C.I. and cannot by law exceed maximum individual holding thresholds which they would if they accepted the C.I. bid. A similar 24 month resale period would likely apply.

If a bid by Holdco is made and is successful or if a business combination occurs, CDP Global Asset Management Inc., a subsidiary of CDP, the largest fund manager in Canada with total assets exceeding $105 Billion, is expected to provide asset management services for certain Mackenzie mutual funds.

Currently AIC Advantage Fund, AIC Advantage Fund II and AIC Canadian Focused Fund own 24,457,280 shares of Mackenzie representing approximately 19% of the outstanding shares of Mackenzie. These shares are not beneficially owned by AIC, but may be considered to be controlled by it.

Michael Lee-Chin, the controlling shareholder of AIC, is considered to beneficially own and control the 6,982,070 Mackenzie shares owned by AIC corporately and by 643291 Ontario Limited, as well as the 4,254 shares owned for his own account and those of a trust for his children. This represents approximately 5% of the outstanding shares of Mackenzie. Also, a portfolio manager at AIC beneficially owns and controls 3,000 shares for his own account.

CDP Financial Services and CDP beneficially own or control 6,788,947 shares of Mackenzie representing approximately 5% of the outstanding shares of Mackenzie. In addition, CDP Global Asset Management manages 14,200 shares of Mackenzie on behalf of others.

The total shares owned or that are or may be considered to be controlled by Lee-Chin, AIC, CDP Financial Services, CDP and CDP Global Asset Management represent approximately 30% of the outstanding shares of Mackenzie.

Holdco has retained National Bank Financial Inc. and TD Securities Inc. as its financial advisers in connection with evaluating the desirability of making a bid.