A HIGH-PERFORMANCE BUSINESS MODEL

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1 6 TH ANNUAL REPORT MESSAGE FROM THE CHAIRMAN The fiscal year ending on December 31, 2007 was an excellent one for the Caisse populaire Desjardins des Mille-Îles, recording a sixth consecutive year of growth. The success marked by our Caisse is due to the sustained trust of its member-owners and the consistent efforts of its senior management and personnel. Our Caisse can therefore be held as a prime example of team effort and cooperation. Bravo! RENEWED PLEASURE AND PRIDE It is not only with pleasure but indeed with pride and emotion that I submit our Caisse s Annual Report on this sixth year of its existence. Our financial services cooperative has progressed again this year on a number of points, including assets, volume of business and surpluses. In this regard, the Annual General Assembly provides an opportunity to members to express themselves in support of the Board of Directors proposal to distribute surpluses that, this year, would generate the distribution of $3,700,000 in member dividends. I am proud to confirm that we are able to meet, for a sixth consecutive year, our objective of returning 10% of interest collected or paid. As of December 31, 2007, Caisse assets reached $480,898,041, up by over $33 M compared to the previous year. On the other hand, earnings before tax and dividends totalled $8,881,502, which is a record for our Caisse. These results placed the caisses, proportionally to its size, among the best performing branches not only of our region but of the whole Fédération des caisses Desjardins du Québec. A HIGH-PERFORMANCE BUSINESS MODEL Despite the extremely competitive environment in which we do business, our Caisse s enviable successes show how our cooperative business model can be applied to financial services and result in exceptional performance. Our Caisse took full advantage of its membership in Mouvement Desjardins. As our earnings show, our Caisse was able to draw on not only the synergy of all Mouvement Desjardins components that continually strive to develop betterfocused products and services, but also on the accessibility of services, expert financial consultants and the great attentiveness of their personnel. For its part, the Board of Directors of your financial services cooperative has ensured that our best efforts were put forward throughout the year to provide and oversaw the high standards of quality in financial services and advice offered to members. With this in mind, our personnel took advantage of professional development programs to hone their knowledge of products and services, the advisory relationship and service quality issues. Finally, in keeping with our objective of making our Caisse more accessible, particular attention was paid to hiring employees able to serve cultural groups in their own language. MAINTAINING ATTENTION ON OUR YOUTH Following the positioning adopted last year, our Caisse has kept its focus on our youth, particularly with regard to adapting services to their specific needs. Consequently, during the year, we launched various initiatives to support those goals. Whether through the Community Development Fund, sponsorships, donations or membership in the Desjardins Youth Focus Program, our Caisse continues to work diligently on fulfilling its commitment to the social, professional and financial integration of 15-to-30-year olds. GOVERNANCE: A FACT OF LIFE AT DESJARDINS Extensive media coverage has highlighted the fact that governance at Mouvement Desjardins is the cornerstone of its success and durability. Not only has our governance attracted the admiration of cooperatives the world over but it has also earned the respect of competing Canadian financial institutions.

2 MESSAGE FROM THE CHAIRMAN (CONT D) Our business model is based on the principles of cooperation set down by our visionary founder, Alphonse Desjardins. Today, these values continue to inspire and guide the mission, range of services and management style of Mouvement Desjardins and our Caisse. During 2007, senior management therefore ensured that their work and their decisions honoured the mission set forth by our Caisse. I would like to reiterate that mission as follows: To provide competitive financial services to members located primarily on the territory of eastern Laval. This service offer must be profitable for both the members and the Caisse, and it must also promote community development. Finally, senior management participated in a number of consultations and received training focused on improving their knowledge of the role they play and their responsibilities related to sound and prudent management. All these initiatives were taken with a view to respecting our cooperative nature and ensuring democratic and effective governance. SAYING THANK YOU On behalf of all our members, I would like to take the opportunity of this annual message to thank the elected officers of our Caisse for their consistent availability to participate in numerous meetings, consultations and assemblies of our governing bodies. Very special thanks go out to my colleagues on the executive committee, Sylvie O. Desroches, Vice-Chair, and Normand De Montigny, Secretary, as well as to Martine Lafrance and Yvon Forget. And, it is always my pleasure to express, on behalf of everyone involved, our sincere appreciation and congratulations to senior management, managers and all Caisse personnel for their direct and unfailing contribution to our institution s financial results. Let me once again convey my great satisfaction in serving the members of our Caisse. I am especially proud to work with such a high calibre team of managers, officers and personnel who are as focused on producing financial results as they are attentive to fulfilling member needs. CONTINUITY AND DURABILITY I am confident that, inspired by the successes recorded in the years since the Caisse populaire Desjardins des Mille-Îles was founded in 2002 and guided by the principles of sound and prudent management, Caisse senior management, managers and personnel will continue to provide their skills, professionalism and energy toward making your financial cooperative an institution that promotes the growth of its members assets in addition to providing increasingly high quality and accessible services for generations to come. I can therefore assure you that, no matter the challenges or unexpected events that the coming year may bring, the Caisse populaire Desjardins des Mille-Îles will remain deeply committed to its core mission of providing members with excellent service and will take every opportunity to consolidate its assets and ensure growth. Because Desjardins puts your money to work serving people and communities, your Caisse is far more than just a bank. Pierre L. Lambert, Chairman of the Board

3 MESSAGE FROM THE GENERAL MANAGER I am both pleased and proud to present Caisse populaire Desjardins des Mille-Îles financial statements for the financial year ending December 31, VOLUME OF ASSETS UNDER MANAGEMENT The Caisse is in a good market position thanks to a volume of assets under management recorded at $1,061,790,100, a 7.8% increase over last year. Due to its membership in Mouvement Desjardins, the Caisse can provide a complete range of financial products and services to meet the growing needs of its 29,768 members. Overall, outstanding investment savings (Caisse and its components) now represent 55% of the book of business while financial products account for 45% of the total book of business. INVESTMENT SAVINGS Investment savings (Caisse and its components) rose by $46,127,700 to $584,177,000, or an increase of 8.6% over last year. In addition to the Caisse s range of savings products, significant efforts have been made to provide a wider array of financial products under the same roof, including investments, securities and discretionary management services offered by Desjardins subsidiaries. These efforts were rewarded, especially with regard to investment funds that rose by 12.3% and securities where outstanding amounts increased by 8.7%. FINANCING Total Caisse financing reached $477,613,200 with an overall growth this year of 6.9%. Caisse loans (personal and commercial), which accounted for the major part of its activities, rose by 7.6%. It is, in fact, the increase in personal and commercial loans that was responsible for the overall growth of the financing portfolio. NOTES ON FINANCIAL STATEMENTS BALANCE SHEET Assets of your financial cooperative rose by $33,334,057 to a total of $480,898,041, or an increase of 7.4% over last year. Caisse liabilities reached $432,567,465, an increase of 6.9%. Caisse borrowing decreased by $7,406,665, or 37.1%, due to the increase in available savings. These now amount to $12,550,557. As at December 31, 2007, your cooperative s equity grew significantly, from $42,875,731 to $48,330,576, or an increase of 12.7%. Capital stock is made up of $148,305 in qualifying shares, $3,482,390 in permanent shares and $86,231 in dividend shares. Accumulated funds in the general account and value-added reserves came to $37,074,903. The funds in the stabilization reserve reached $1,045,199 and the Community Development Fund amounts to $91,699. In addition, your Caisse accumulated $900,000 in a reserve for eventual member dividends (RMD), which will allow us to ensure regular member dividend payments. Caisse shareholder equity stands at 6.75% of expansion assets and 10.8% of at-risk assets, which are levels compliant with international capital adequacy rules. INCOME STATEMENT Over the past fiscal year, surplus earnings before dividends reached $6,740,468, which is a healthy increase of 4.7% over the previous year. Revenues from interest totalled $25,512,036, or an increase of 9.5% over last year. Interest expense also increased by 16.5%, up by $1,398,435 over last year. This gap is due to an increase in savings volume. Bad debt amounted to $89,530, or 0.02% of the overall portfolio of loans granted to our individual and business members. Other revenues, which are mainly generated from the distribution of products and services from Desjardins subsidiaries, were recorded at $5,652,457, up by 15.4% over last year. This is evidence of the greater importance our members attribute to having a complete range of financial products and services at their disposal and shows the increasing contribution this source of Caisse revenue provides. Overall, other expenses are slightly up, increasing by $690,111 or 5.9%. This year, we are projecting to share surpluses through a member dividend distribution of $3,700,000. Such member dividend distributions now total more than $15,000,000 over the past six years. There is no arguing with this tangible demonstration of our distinctive cooperative nature.

4 PROFIT-SHARING FUNDS Caisse investments in profit-sharing funds allow the Fédération des caisses Desjardins du Québec to coordinate investments in Mouvement Desjardins subsidiaries and regional investments. The subsidiaries are mainly Desjardins Financial Services, Desjardins Venture Capital and Caisse centrale Desjardins. Through their activities, these subsidiaries help the caisses to extend their offering with a complete range of financial products and services to individuals, groups of individuals and businesses. Your Caisse s participation in each profitsharing fund as well as the return on that investment at year-end are shown at the bottom of the page. FORECAST The Board of Directors recently sat down for a planning exercise to establish the Caisse s business plan as well as to develop a budget outline for the fiscal year. We are confident that these guidelines, supported by sound and effective management, will give us the tools to maintain and further improve the Caisse s excellent results. CONCLUSION As a final word, I would like to thank our staff for their consistent efforts and their openness to the many changes in the way we do things. I also thank senior management for their commitment and availability as well as all Caisse members for the trust they have shown in their financial cooperative and their loyalty to our services. Jocelyne Poulin General Manager HIGHLIGHTS CAISSE POPULAIRE DESJARDINS DES MILLE-ÎLES IS: an accessible and forward-looking financial institution that maintains close contact with its members with: four service points and 12 automated teller machines located throughout the territory; a business centre for companies; an asset management service. Skilled personnel and a complete range of financial products and services, including: a total of 88 employees; access the expertise of financial planners and product specialists; a complete range of specially-designed financial products and services, investments, insurance and complementary products. PROFIT-SHARING FUNDS AS OF DECEMBER 31, 2007 Shares held as of December 31, 2007 Average yield Provincial funds in dollars in % Caisse centrale Desjardins (CCD) $4,413,308 9,27 % Société de Services des caisses Desjardins (SER) ($10,090) -- % Desjardins Venture Capital (INV) $449,708 7,75 % Desjardins Securities (VM) $356,937 (0,15) % Desjardins Trust (FD) $662,375 4,01 % Desjardins Financial Services (RF1) $389,229 5,54 % Desjardins Financial Services (FIN3) $9,266,744 13,40 % Regional Investment funds FED3 871$ 31,30 % FID-MON $114,055 (4,73) % A one-stop financial institution that pulls together all the advantages of a cooperative format, such as: member dividends of over $15 million paid out over the past 6 years; practical cooperative projects in conjunction with organizations in the community. Just look at the numbers. They say it all: 7.8% growth in assets under management, now reaching over $1 billion; Greater contribution of the range of products offered through various Desjardins subsidiaries: $171,405 million in off-balance-sheet savings, or an increase of 8.0%.

5 REPORT OF THE BOARD OF SUPERVISION The role of the Board of Supervision is to monitor, on behalf of the General Assembly of Members, all Caisse operations in terms of ethics, professional conduct and cooperative initiatives. With regard to the Code of Ethics and Professional Conduct, the role of the Board of Supervision is to: ensure that Caisse managers and personnel uphold the values, principles and rules included in the Code of Ethics and Rules of Professional Conduct; handle member complains related to ethics and professional conduct. As for cooperation, the Board of Supervision must ensure that: democratic rights and responsibilities are exercised within the Caisse. the Caisse assumes its responsibilities regarding cooperative, economic and financial education. the Caisse maintains good working relationships with other caisses, the Desjardins network and other cooperatives in the community and that the Caisse s commitments are effectively honoured according to its values. permanent, cooperative values are integrated into the Caisse s commercial and management practices. MONITORING THE ETHICAL COMPONENT With regard to ethics, the Board of Supervision ensured the respect of values and principles as they apply to the conduct and decisions taken by the Caisse, its managers and employees throughout the year. MONITORING PROFESSIONAL CONDUCT Monitoring of professional conduct focused on three main components. Situations of conflict of interest No situations of conflict of interest have been found. Loans granted to applicants The Caisse granted a total of $2,080, worth of loans to applicants over the fiscal year in full respect of all applicable standards and rules of ethics and professional conduct. Contract award to persons meeting Code criteria During the same period, the Caisse awarded 16 contracts, other than credit, for a total of $4, to persons meeting the criteria set forth in the Code of Ethics and Professional Conduct. The contracts were all awarded in full respect of all standards and rules of ethics and professional conduct applicable to contract award. MONITORING COOPERATION The Board of Supervision focused its attention on reviewing the representativeness of elected officers. The review resulted in the development of specific recommendations on this aspect of Caisse affairs. Finally, the integrity, respect for member rights, cooperation and involvement in the community are all issues our Caisse will be addressing over the coming years. The Board of Supervision is committed to supporting the Board of Directors, senior management and personnel in their actions to effectively deal with these issues. Gilles Lafontaine, Chairman Board of Supervision

6 Head Office Asset Management Department 4433 de la Concorde Blvd. E. (Québec) H7C 1M4 Fax: St-François Services Centre 3975 Montée Masson Laval (Québec) H7B 1B8 Fax: Duvernay Services Centre 2930 de la Concorde Blvd. E. Laval (Québec) H7E 2B6 Fax: St-Noël Chabanel Services Centre 600 Montée du Moulin, Suite 6 Laval (Québec) H7A 1Z6 Fax: Desjardins Business Centre-Laval 2550 Daniel-Johnson Blvd., Suite 210 Laval (Québec) H7T 2L1 Tel: Fax: Just one telephone number: APPROVAL OF THE ANNUAL REPORT We hereby certify that the 6 th Annual Report of Caisse populaire Desjardins des Mille-Îles fulfills the requirements of the Act respecting financial services cooperatives and that it was duly approved by the Caisse Board of Directors. Pierre L. Lambert, Chairman Normand De Montigny, Secretary MEMBERS OF THE BOARD OF DIRECTORS Pierre L. Lambert* Chairman Attorney Sylvie Desroches Vice-Chair Businesswoman in the field of window and door manufacturing Normand De Montigny Secretary Manager in the field of biotechnology Claude Baril Member of the Board Engineer Dominique Cloutier Member of the Board Notary Yvon Forget* Member of the Board Retired milk producer Michel Gingras Member of the Board Teacher Pierre Hamelin* Member of the Board Retired teacher Martine Lafrance, CHRP Member of the Board Businesswoman in the field of real estate management Jean-Claude Pelletier Member of the Board Businessman in the agro-food sector Jean-Pierre Potvin Member of the Board Retired marketing consultant Guy Villeneuve Member of the Board Retired manager, office of the Solicitor General of Canada Claude Vincent* Member of the Board Retired federal civil servant MEMBERS OF THE BOARD OF SUPERVISION Gilles Lafontaine Chairman Retired manager in the field of education Claude Chartrand* Secretary Retired accountant Yvon Beauchamp Advisor Retired police officer Robert Farley* Advisor Notary Reine Michaud Advisor Teacher in the field of sewing * Outgoing Board members and eligible for reelection.

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