AIC Limited is replacing the management team assigned to four of its funds. Effective immediately AIC Global Health Care Fund, AIC RSP Global Health Care Fund, AIC Global Telecommunications Fund and AIC RSP Global Telecommunications Fund will be managed internally by the AIC Technology Team, led by Geoff Barth and Allan Brown, both senior vice-presidents and portfolio managers at AIC. The funds were previously sub-advised by Dresdner RCM Global Investors, LLC.

AIC and Dresdner agreed to terminate their sub-advisory agreement as a result of recent personnel changes at Dresdner.

AIC also proposes to merge AIC Global Health Care Fund into AIC Global Medical Science Fund and AIC RSP Global Health Care Fund into AIC RSP Global Medical Science Fund. The company says it believes the mergers will be beneficial to unitholders as the investment objectives of the applicable funds are compatible and investors are expected to benefit from increased economies of scale as part of a larger fund.

The mergers are subject to approval by unitholders. If approved, it is anticipated that the mergers will take place on or before November 30, 2001.

Effective as of the close of business on August 23, 2001, each of AIC Global Health Care Fund and AIC RSP Global Health Care Fund will cease distribution of new units (except purchases under existing pre-authorized chequing plans). Redemptions will continue as described in the prospectus of these Funds until the date of the mergers and AIC will continue to provide the daily net asset values.