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Xceed Mortgage';s Shareholders Approve Company';s Continuance as a Federally Regulated Bank

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^{Published in Business and Finance on Friday, September 11th 2009 at 3:32 GMT by Market Wire}  

 TORONTO, Sept. 11 /CNW/ - Xceed Mortgage Corporation (TSX: XMC), a Canadian provider of insured mortgages, today announced that its shareholders have voted to approve continuance of the company as a federally regulated Schedule 1 bank under the Bank Act (Canada). At a Special Meeting held here yesterday, the shareholders also approved a change in the company's name to Xceed Bank and Banque Xceed, and to confirm the amendments needed to the by-laws of the company. The continuance of Xceed as a bank and changes to the company's name and bylaws are subject to receiving the approval from the Office of the Superintendent of Financial Institutions (OSFI) of the company's application to be granted Schedule 1 bank status. "As a bank, Xceed will benefit by increasing our channels for obtaining additional funds that we can use for underwriting new mortgages and renewing existing ones in our nearly $2 billion portfolio of assets under management," said Ivan Wahl, Chairman and Chief Executive Officer. "We will be able to attract retail deposits, by issuing guaranteed investment certificates, at rates that are competitive in the marketplace while providing a reasonable cost for Xceed. It should improve the spreads between our sourcing funds and underwriting activities. Continuation as a bank also will assist us in gaining approval from the Canada Housing and Mortgage Corporation to pool and sell mortgages directly to the Canada Mortgage Bond program without the need for us to rely on a conduit and having to pay the costs associated with that. "As a bank, we expect to be able to resume selling financial products to the niche market that is not well-served by traditional lenders. We will be able to compete on a level playing field with other existing small banks and trust companies. We will have more flexibility to eventually enter into the marketplace for other related financial products," Mr. Wahl said. About Xceed Xceed Mortgage Corporation, based in Toronto, is a Canadian provider of insured residential mortgages that it originates in Canada. The company has approximately $2.0 billion of mortgages and other assets under administration. Xceed's shares are traded on the Toronto Stock Exchange (TSX: XMC). To find out more about Xceed Mortgage Corporation, visit our website at [ www.xceedmortgage.com ]. Forward-Looking Statements Forward-looking statements in this document are based on current expectations that are subject to significant risks and uncertainties. Actual results might differ materially due to various factors such as the competitive nature of the mortgage industry, the ability of Xceed to continue to execute its growth and development strategy, and the reliance of Xceed on key personnel. Xceed assumes no obligation to update these forward-looking statements, or to update the reasons why actual results could differ from those reflected in these. Additional information identifying risks and uncertainties is contained in Xceed's regulatory filings available on its website and at [ www.sedar.com ]. %SEDAR: 00020677E 

For further information: Investor and Media Relations: Richard Wertheim, Wertheim + Company Inc., (416) 594-1600 (bus.) or (416) 518-8479 (cell), email: [ wertheim@wertheim.ca ]