The Standard Life Assurance Co, announced today that it intends to redeem units it holds in some Standard Life Mutual Funds and Legend Series Investment. Standard Life Assuance is the parent company of Standard Life Mutual Funds Ltd., the manager of the funds.

Standard Life Assurance made significant investments in the funds at their inception in order to provide adequate funding to construct the portfolio in line with the stated objectives of the funds.

The firm says assets under management have now reached a satisfactory level whereby it can redeem a portion of its original investment in select funds.

A total of $15 million will be redeemed under the Legend Global Income Pool in five $3 million instalments on the following dates: May 2, May 9, May 24, May 31 and June 7, 2002.

Moreover, $1 million in units was redeemed from Legend Dividend Pool prior to March 30, 2002.

The estimated net asset value as at June 28 for the Legend Global Income Pool is $7.9 million. For the Legend Canadian Dividend Pool, the estimated NAV at June 28 is $13.8 million.

Standard Life Assurance says the NAVs reflect the impact of these redemptions and does not take into account net sales or performance in the interim.

It is expected that the proposed redemptions in the Legend Global Income Pool (the terminating fund) will result in a smaller net asset value than that of the Standard Life International Bond Fund (the continuing fund) and therefore will not constitute a significant change for the continuing fund on the June 28, 2002 proposed merger date. Unitholders will no longer be required to vote on the proposed merger as previously disclosed April 22, 2002.

Standard Life Assurance also redeemed units of the following Standard Life Funds: Standard Life Growth Equity Fund; Standard Life Active U.S. Index RSP Fund; and Standard Life Corporate High Yield Bond Fund

Standard Life Assurance is also proposing to effect further redemptions of units of various Standard Life Funds after June 28, 2002. On this date a number of Legend Pools will be merged into Standard Life Funds. The merger was disclosed in a press release dated April 22.

The following funds will be affected: Standard Life Money Market Fund; Standard Life Canadian Bond Fund; Standard Life Canadian Dividend Fund; Standard Life Canadian Equity Fund; Standard Life U.S. Equity Fund; Standard Life Global Equity Fund; Standard Life Canadian Small Cap Fund.

The proposed redemptions will be phased in and will not affect the portfolio management of the funds by Standard Life Investments Inc.