1999 Q4 - Notice to Stakeholders

The Board of Directors of the Canada Pension Plan Investment Board (the "CPP Investment Board") released today the financial statements for the quarter ended March 31, 1999.

During this quarter, the CPP Investment Board received its first cash flow (March 1, 1999) and ended the quarter with $12.1 million under management. The March cash flows resulted from the decision of selected provinces and the federal government to direct proceeds of maturing Canada Pension Plan bonds to the CPP Investment Board. Contributions from payroll deductions did not commence until May 1999.

The cash flows were allocated to both domestic and foreign equities. The domestic equity investment substantially replicates the TSE 300 Composite Index. To implement the foreign equity index strategy, the investment manager purchased S & P 500 and EAFE index funds, which together substantially replicate the MSCI World Index exclusive of Canada.

The CPP Investment Board's total return from its first month's investment activity was 5.0% as compared to the benchmark return of 4.7%. The benchmark is based on a weighted average of the TSE 300 return (80%) and the MSCI World Index (ex Canada) return (20%).

The CPP Investment Board currently invests only in stock index funds. While investment returns are therefore expected to closely match the benchmark returns, differences are not unusual, particularly in the start-up phase.

ANNUAL REPORT

The CPP Investment Board's first Annual Report is scheduled for release during the last week of June. It will cover the CPP Investment Board's first two quarters of operation that ended March 31, 1999.

WEB-SITE

The CPP Investment Board's web-site is scheduled to be operational by the time of the release of the Annual Report.

BOARD OF DIRECTORS

The resignation of Mr. Gerard La Forest from the Board of Directors has been accepted with great regret. The Board of Directors fully understood Mr. La Forest's personal situation and the possibility that he might not be able to continue as a director. To lose a founding director of Mr. La Forest's stature and background, however, is a real disappointment to the Board of Directors.