Issue of Debt

Sun Life Fin.Services of Canada Inc
12 October 2001



                      SUN LIFE FINANCIAL ANNOUNCES ISSUE OF 
                          INNOVATIVE TIER 1 SECURITIES

(Toronto, October 11, 2001) Sun Life Financial today announced that Sun Life 
Capital Trust, a trust established by Sun Life Assurance Company of Canada, has 
agreed to issue in Canada $950 million of Sun Life ExchangEable Capital 
Securities - Series A ('SLEECS'). The coupon on the SLEECS was set at 6.865 per 
cent per annum, payable semi-annually. The proceeds of the offering will be used
to finance a portion of the purchase price for Keyport Life Insurance Company 
('Keyport') and Independent Financial Marketing Group, Inc. ('IFMG').

'We are delighted with the enthusiastic response this offering received in the 
marketplace,' said Paul Derksen, Executive Vice-President and Chief Financial 
Officer of Sun Life Financial. 'The strength of our balance sheet provided us 
the flexibility for fine-tuning our financing strategy. By tapping the most 
attractive segments of the capital markets we were able to advance towards 
important strategic objectives in a very cost-effective manner.'

The SLEECS issue provides Sun Life Financial with an extremely attractive, low-
cost source of financing as it is both tax-deductible and, subject to OSFI 
approval, will count as Tier 1 Capital. The issue is expected to have a 10-year 
term.

'We were able to take advantage of an attractive market window to secure a 
larger volume of financing than we had initially anticipated,' said Mr. Derksen.
'The competitive pricing of the issue has put us in a position to further 
optimize our capital structure over time.'

The lead underwriters for the SLEECS offering are Scotia Capital Inc. and 
Merrill Lynch Canada Inc.

Keyport is a Boston-based specialty insurance company providing a diversified 
line of fixed, indexed and variable annuity products in the U.S. IFMG is a 
leading third-party marketer of insurance and investment products to retail 
customers through banks in the U.S. These acquisitions will complement both Sun 
Life Financial's product array and distribution capabilities.

Sun Life Financial is a leading international financial services organization 
providing a diverse range of wealth accumulation and protection products and 
services to individuals and corporate customers. Tracing its roots back to 1871,
Sun Life Financial and its partners today have operations in key markets 
worldwide, including Canada, the United States, the United Kingdom, Hong Kong, 
the Philippines, Japan, Indonesia, India, and Bermuda. As of June 30, 2001, the 
Sun Life Financial group of companies has total assets under management of Cdn 
$326 billion.

Sun Life Financial Services of Canada Inc. trades on the Toronto (TSE), New York
(NYSE) and Philippine (PSE) stock exchanges under ticker symbol 'SLC,' and on 
the London Stock Exchange under ticker symbol 'SFC.'

This press release is not an offer of the SLEECS or the preferred shares of Sun 
Life Assurance Company of Canada for sale in the United States. The SLEECS and 
the preferred shares of Sun Life Assurance Company of Canada have not been and 
will not be registered under the U.S. Securities Act of 1933 and may not be 
offered or sold in the United States absent registration or an available 
exemption from registration requirements.


Media Contacts:
John Vincic                 Francine Cleroux     
[phone]               [phone]


Investor Contact:
Thomas R. Rice 
[phone]