OMERS REPORTS 2006 TOP-QUARTILE RETURNS OF 16.4 PER CENT

TORONTO, ONTARIO--(February 26, 2007) - OMERS announced today that its total rate of return was 16.4 per cent in 2006, a top-quartile performance that exceeded its benchmark return of 13.7 per cent. This is the fourth year in a row in which OMERS has achieved a double-digit return, earning net investment income for 2006 of $6.5 billion, compared with $5.5 billion in 2005. The fair market value of net assets increased 15.9 per cent, to total $47.6 billion as at December 31, 2006, up from $41.1 billion the previous year.

OMERS strong 2006 returns were due to the successful execution of our investment strategy, anchored by the buoyant public markets and the strong returns realized by all three private market lines of business - real estate, infrastructure and private equity, said OMERS President and Chief Executive Officer, Paul Haggis. We remain focused on being the leader in the pension industry, providing first-in-class investment management and delivering superior pension services to our members and employers.

OMERS is continuing its long-term strategy to increase its holdings in private equities, real estate and infrastructure from the current 24.2 per cent to 37.5 per cent of net investment assets. OMERS anticipates that over the long-term, an asset mix with greater exposure to private market investments is better positioned to generate strong, predictable returns and consistent cash flow with reduced risk to meet its funding requirements.

OMERS received $1.8 billion in pension contributions in 2006, compared to $1.5 billion in 2005. Pension and other benefit payments totalled $1.7 billion in 2006, an increase from $1.6 billion in the previous year.

2006 Accomplishments

In 2006, OMERS Pension Division continued to be the leader in the public sector pension industry. According to an annual survey to assess how OMERS meets the needs of its members and employers, an average satisfaction rate of 91 per cent for the overall level of service was achieved. For example, initial claims turnaround time was less than two business days on average and incoming calls were resolved at first point of contact 91.5 per cent of the time.

OMERS has four primary investment businesses - public markets, private equity, infrastructure and real estate.