Excellent fit will deliver substantial benefits to customers and shareholders

TORONTO - Sun Life Financial Inc. announced it is acquiring the United Kingdom operations of Lincoln National Corporation. The value of the transaction is approximately (pnds stlg)195 million (CDN$359 million). The transaction, which is anticipated to be completed in the third quarter of 2009, is subject to regulatory approvals and to purchase price adjustments related to market and business performance between signing and closing.

Donald A. Stewart, Chief Executive Officer, Sun Life Financial, said, "Sun Life is seizing a compelling opportunity to expand the scale of its UK business by acquiring a highly complementary and sizable block of business. The combined operation is expected to generate attractive returns and serve to position Sun Life for future growth in one of the world's largest life insurance markets. This focused transaction demonstrates our disciplined approach to acquisitions and to our business. Importantly, the transaction demonstrates our financial strength even during these turbulent times." The acquisition will increase Sun Life UK's assets under management by nearly 60% to (pnds stlg)10.6B (CDN$19B); and double the number of policies in force to 1.1 million. The combined operation will carry the Sun Life Financial of Canada name upon integration, a brand that has been active in the UK for more than a century. The transaction is financially attractive, providing Sun Life with an estimated earnings per share accretion of CDN$0.08 to $0.10 in 2010. Return on equity is estimated to increase by 0.2%.

Robert C. Salipante, President, Sun Life Financial International, said, "Scale in the combined operation will enable Sun Life to strengthen its focus on customers even further in the UK and optimize a highly experienced team, proven processes and profitable business model."

The two complementary operations each hold books of business in life insurance, pensions and annuities. Adding this book will enhance Sun Life UK's earnings power, while Lincoln's business and distribution platform in the UK, including relationships with Independent Financial Advisors, provides Sun Life with an expanded opportunity to sell additional products.