TMX group

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     Transaction will add approximately 300,000 participants
                 and USD $7.5 billion in plan assets
>>

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES/

TSX:GWO

Readers are referred to the disclaimer regarding Forward-Looking
Information at the end of this Release.

WINNIPEG, June 26, 2006 /CNW/ - Great-West Lifeco Inc. today announced
that its U.S. subsidiary, Great-West Life & Annuity Insurance Company, has
reached an agreement to acquire from Metropolitan Life Insurance Company and
its affiliates, several parts of their full service-bundled, small and midsize
401(k) as well as some defined benefit plan business. The acquisition also
includes the associated dedicated distribution group, including wholesalers,
relationship managers and sales associates. The acquisition nearly doubles
both Great-West Life & Annuity's participants in the 401(k) full service
segment, and its distribution capacity.
The agreement includes nearly 2,600 plans, representing approximately
300,000 participants and $7.5 billion USD in retirement plan assets. The
transaction is scheduled to close in the fourth quarter of 2006, subject to
regulatory approval in the U.S. Lifeco expects the transaction will be
accretive to earnings in 2007 and subsequent years.
"This acquisition advances our strategy to position Great-West Life &
Annuity as a top provider of retirement plans and services in the U.S.," said
Raymond L. McFeetors, President and Chief Executive Officer of Lifeco. "It
gives us a significantly broader presence in our target market, the midsize
401(k) segment, where we've already established ourselves as an innovative and
growing player."
In addition to its full-service 401(k) business, Great-West Life &
Annuity provides a range of retirement products and services to the corporate,
government, healthcare, and education markets and to institutional clients.
Great-West Life & Annuity, which offers products and services for 401(k),
401(a), 403(b) and 457 retirement plans will, following the transaction,
provide these services to more than 20,100 plans representing more than 3.2
million participants with in excess of $94.1 billion USD in assets.
Products and services are provided by Great-West Life & Annuity Insurance
Company, FASCore LLC, and First Great-West Life & Annuity Insurance Company
and their subsidiaries and affiliates. Insurance products and related services
are sold in New York State by First Great-West Life & Annuity Insurance
Company of White Plains, New York.

Great-West Life & Annuity Insurance Company, headquartered in metro
Denver, serves its customers through a full range of retirement savings
products and services, annuities, life and disability insurance and health
care plans. It is an indirect, wholly owned subsidiary of Great-West Lifeco
Inc. and a member of the Power Financial Corporation group of companies.
Great-West Lifeco Inc. (TSX:GWO) is a financial services holding company
with interests in the life insurance, health insurance, retirement savings,
and reinsurance businesses. Lifeco has operations in Canada, the United States
and Europe through The Great-West Life Assurance Company, London Life
Insurance Company, The Canada Life Assurance Company and Great-West Life &
Annuity Insurance Company. Lifeco and its companies have $182 billion in
assets under administration. Great-West Lifeco is a member of the Power
Financial Corporation group of companies.

Forward-Looking Information
This release contains forward-looking statements about the Company,
including its business operations, strategy and expected financial performance
and condition. Forward-looking statements include statements that are
predictive in nature, depend upon or refer to future events or conditions, or
include words such as "expects," "anticipates," "intends," "plans,"
"believes," "estimates" or negative versions thereof and similar expressions.
In addition, any statement that may be made concerning future financial
performance (including revenues, earnings or growth rates), ongoing business
strategies or prospects, and possible future Company action, including
statements made in this release by the Company in regards to the expected
closing of the transaction with Metropolitan Life Insurance Company and the
expectation that the transaction will be accretive to earnings in 2007 and
subsequent years, are also forward-looking statements. Forward-looking
statements are based on current expectations and projections about future
events and are inherently subject to, among other things, risks, uncertainties
and assumptions about the Company, economic factors and the insurance industry
generally. They are not guarantees of future performance, and actual events
and results could differ materially from those expressed or implied by
forward-looking statements made by the Company due to, but not limited to,
important factors such as sales levels, premium income, fee income, expense
levels, mortality experience, morbidity experience, policy lapse rates and
taxes, as well as general economic, political and market factors in North
America and internationally, interest and foreign exchange rates, global
equity and capital markets, business competition, technological change,
changes in government regulations, unexpected judicial or regulatory
proceedings, catastrophic events, and the Company's ability to complete
strategic transactions and integrate acquisitions. The reader is cautioned
that the foregoing list of important factors is not exhaustive. The reader is
also cautioned to consider these and other factors carefully and to not place
undue reliance on forward-looking statements. Other than as specifically
required by applicable law, the Company has no intention to update any
forward-looking statements whether as a result of new information, future
events or otherwise.