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November 29, 2009

Manulife Financial Completes $2.5b Common Shares Offering

To buffer against conservative economic scenarios and to take advantage of attractive acquisition and growth opportunities

By CBR Staff Writer

Manulife Financial has announced that its offering of $2.5 billion of common shares announced on November 18, 2009 has been completed. The company said that the common shares to be offered have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the US absent registration or an applicable exemption from the registration requirements of the US Securities Act.

The shares were sold to a syndicate of underwriters, led by Scotia Capital and RBC Dominion Securities, in a bought deal public offering. It would raise funds to boost its capital level and to take advantage of acquisition and growth opportunities.

The company has granted the underwriters an over-allotment option, exercisable in whole or in part at any time up to 30 days after closing, to purchase up to an additional $3.75 billion in common shares at the same offering price. Should the over-allotment option be exercised in full, the total gross proceeds of the offering would be $2.87 billion.

Donald Guloien, CEO of Manulife Financial, said: “We are positioning Manulife for the long term. We believe this transaction achieves the fortress level of capital necessary to buffer against more conservative economic scenarios and to position us to take advantage of highly attractive acquisition and growth opportunities.

”Our action today is consistent with Manulife’s conservative approach to capital management. Achieving these strong capital levels enables us to offer an even higher degree of security to present and future customers. It also gives us tremendous flexibility.”

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