Western Financial Group Announces New Vice-Chairman & Approves Change to Dividend Policy

High River, Alberta – October 12, 2006 (TSX – WES, WES.DB.A) - Western Financial Group (“the Company") is pleased to announce the appointment of Bill Yuill as Vice-Chairman of Western Financial Group’s Board of Directors. Mr. Yuill is filling the role that has been vacant since Jim Dinning accepted the position of Chairman in September 2004.

“Bill knows our Company well, having served as a board member for the past two years,” said Scott Tannas, President & Chief Executive Officer of Western Financial Group. “He contributes a wealth of experience as a western entrepreneur who has successfully consolidated small companies into larger, more competitive entities.”

Mr. Yuill is Chairman and CEO of The Monarch Corporation, a private holding company with investments in telecommunications, sports properties, real estate properties and transportation. As well, Mr. Yuill is a director on a number of public, private and not for profit boards.

Western Financial Group also announced today that the Board of Directors has approved a change to the Company’s dividend policy and upon satisfaction of certain conditions the Company plans to commence payment of a quarterly dividend on July 1, 2007.

The payment of dividends and the amount of such dividends will be subject to the discretion of the Board of Directors and will depend on, among other things, the Company’s financial condition, general business conditions and other factors that the Board of Directors may in the future consider to be relevant. It is expected that such dividends will be paid to shareholders quarterly on each of January 1, April 1, July 1 and October 1.

Western Financial Group is one of the leading western-based financial service companies in Western Canada. With offices in towns and small cities across the West, the Company provides more than 250,000 customers with insurance, investment and banking products through WFG Agency Network, Western Life and Bank West.

The Common Shares of Western Financial Group are traded on the Toronto Stock Exchange under the symbol “WES”.

This press release is not for distribution to any United States news services or otherwise in the United States.

For further information, please contact:
Jodi Greig, Corporate Communications Manager
Western Financial Group
403-652-2663