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Home Equity Income Trust Converts to a Corporation

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^{Published in Business and Finance on Tuesday, June 30th 2009 at 13:11 GMT, Last Modified on 2009-06-30 13:12:03 by Market Wire}  

 TORONTO, June 30 /CNW/ - Home Equity Income Trust (TSX: HEQ.UN) (the "Trust") announced today that it has completed its conversion from an income trust to a corporate structure (the "Conversion") in accordance with a final order issued by the Ontario Superior Court of Justice on May 5, 2009. The Conversion has resulted in the reorganization of the Trust's income trust structure to a publicly-listed corporation, HOMEQ Corporation (TSX: HEQ) ("HOMEQ"). Unitholders of the Trust received, for each unit held, one common share of HOMEQ. The Conversion was completed on a tax-free rollover basis for Canadian residents. The common shares of HOMEQ will commence trading on the Toronto Stock Exchange on July 3, 2009. Concurrently, the Trust units will be delisted. The Trust previously announced the Conversion as part of its plan to continue its operating subsidiary, Canadian Home Income Plan Corporation ("CHIP") as a federally-regulated, Schedule I Canadian bank. The new bank will be called HomEquity Bank in English and Banque HomEquity in French. By obtaining a bank charter HomEquity Bank will have access to retail deposits sourced through deposit brokers. Continuing CHIP as a bank is subject to the review and approval of an application to the Minister of Finance and is anticipated to occur in the third quarter of 2009. Forward Looking Statements HOMEQ Corporation from time to time makes written and verbal forward-looking statements about business objectives, operations, performance, and financial condition, including, in particular, the establishment of HomEquity Bank, and the likelihood of success in developing and expanding its business. These may be included in HOMEQ's and the Trust's Annual Reports, regulatory filings, reports to securityholders, press releases, presentations and other communications. These forward-looking statements are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies many of which are beyond the control of HOMEQ. Actual results may differ materially from those expressed or implied by such forward-looking statements. HOMEQ does not undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time except as required by applicable securities laws. About HOMEQ Corporation HOMEQ Corporation invests in reverse mortgages originated by its wholly owned subsidiary Canadian Home Income Plan Corporation. As of March 31, 2009, the portfolio generating cash returns to HOMEQ comprised approximately 7,000 reverse mortgages with an accrued value of $826 million, secured by residential properties across Canada worth approximately $2.3 billion. CHIP ([ www.chip.ca ]), has been the main underwriter of reverse mortgages in Canada since pioneering the concept in 1986. HOMEQ's securities trade on the Toronto Stock Exchange under the symbol HEQ. Additional information on HOMEQ and the Trust, including annual and quarterly reports can be viewed at [ www.homeq.ca ]. %SEDAR: 00018040E 

For further information: Steven K. Ranson, President and Chief Executive Officer, (416) 413-4663; Gary Krikler, Senior Vice President and Chief Financial Officer, (416) 413-4679