Xceed Requests the Office of the Superintendent of Financial Institutions to
place its application to become a federally regulated institution on hold

TORONTO, Nov. 4 /CNW/ - Xceed Mortgage Corporation (TSX: XMC), a Canadian provider of insured mortgages, today announced that it has asked the Office of the Superintendent of Financial Institutions to place its application to become a federally regulated institution on hold pending the completion of several initiatives to be completed by Xceed. These initiatives include completing its transition from operating as a non-conforming lender to a prime lender and the significant reduction of the remaining mortgage balances in the various trusts to which Xceed sold the mortgages in the first place. It is Xceed's expectation that these initiatives will be completed over the next several quarters. This will also convert our interests in these mortgages to cash resulting in the majority of our $68 million of equity becoming available for new business opportunities.

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 $1.7 billion of mortgages and other assets under administration.  Xceed's shares are traded on the Toronto Stock Exchange.  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.  Specifically, there can be no assurance that the company will be successful in making new arrangements for the funding of mortgages or that further changes to Xceed's mortgage offering will not be required as a result.  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.

For further information:

please contact Investor and Media Relations: 

Richard Wertheim
Wertheim + Company Inc.
[phone] ext. 223 or (416-518-8479 cell)
Email: [email protected].