October 7, 2002
FOR IMMEDIATE RELEASE

AIC Announces Technology Fund Consolidation

Burlington (Ontario) - AIC Limited today announced plans to consolidate its five technology-based equity funds into one fund, on or before December 20, 2002, subject to investor and regulatory approval. Upon completion, AIC will offer investors a consolidated science and technology fund to be named AIC Diversified Science & Technology Fund and its corresponding RSP and Corporate Class versions.

"AIC introduced its Sector Group of technology funds into the market in June and October 2000," said Michael Lee-Chin, Chairman and Chief Executive Officer. "Over the past two years, investor demand for these funds has not been as strong as we had first anticipated. These funds currently have combined assets under management of approximately $130 million. By comparison, investors have continued to invest in a number of our core equity funds including -- AIC Advantage Fund I and II, AIC Diversified Canada Fund, AIC Value Fund, and AIC American Focused Fund -- where combined assets under management stand in excess of $8 billion. For this reason, it makes sense to offer only one science and technology-based fund to meet current and future investor needs."

AIC Diversified Science & Technology Fund will be managed by a team of investment professionals under the direction of Jonathan Wellum, AIC Chief Investment Officer.

AIC continues to offer investors a full range of Canadian, American and International equity funds investing in high growth sectors such as financial services, consumer products, media and pharmaceuticals. "Like other AIC Funds, the consolidated AIC Diversified Science & Technology Fund will also be managed in accordance with AIC's well-defined investment philosophy and principles" said Mr. Wellum, who oversees the team of approximately 20 AIC portfolio managers and analysts. "AIC draws on its extensive proprietary research to fulfil the goal of having our Funds achieve above average long term performance with below average business risk. For this reason, current and future AIC investors can have confidence in our complete product offering."

Under the proposed consolidation, 11 funds (the "Terminating Funds") will be merged into three funds (the "Continuing Funds"). The details of the proposal are as follows:

AIC believes that the mergers will be beneficial to unitholders of the merging funds as investors are expected to benefit from increased economies of scale as part of a larger fund.

The mergers are subject to approval by investors holding units/shares of the Funds. For this purpose, meetings are scheduled for November 27, 2002 at AIC's head office 1375 Kerns Road, Burlington, Ontario. If approved, it is anticipated that the mergers will take place on or before December 20, 2002.

Effective as of the close of business on October 7, 2002, each of the Terminating Funds will cease distribution of new units/shares (except purchases under existing pre-authorized chequing plans). Redemptions will continue as described in the respective prospectuses of these Funds until the date of the mergers and AIC will continue to provide the daily net asset values.

The Terminating Funds were managed by Allan Brown and Geoff Barth. Messrs. Brown and Barth are no longer employed with AIC.

AIC Global Technology Fund was managed by Ron Elijah and Rod Berry in a sub-advisory relationship through AIC Asset Management, LLC. Messrs. Elijah and Berry will provide research services to the new management team.

AIC commenced operations in 1985 and has grown to become Canada's largest privately-held mutual fund company with assets under management exceeding $11 billion.

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Terri Oswald
Director, Media Relations
AIC Limited, Burlington ON
(905) 331-4242, ext. 4345
1-888-710-4242, ext. 4345
toswald@aic.com