Xceed Company Profile

Forward-Looking And Other Statements This presentation contains forward-looking statements which reflect management’s expectations regarding Xceed Mortgage Corporation’s future growth, performance (both operational and financial), and business prospects and opportunities. Past results do not constitute a guarantee of future performance. A number of factors could cause actual results, performance, or achievements to differ materially from the results expressed or implied in these materials. Business prospects and opportunities considered are based on approximation extrapolation of potential market indicators. These factors should be considered carefully and prospective investors should not place undue reliance on any forward looking statements

Performance Niche Innovation Management Risk-Reward Growth - 3 -

Brief History Established in Canada in 1997 as a subsidiary of IMC Mortgage Corporation. Current investor group purchased 90% of common stock from BMO in April 2002 and recapitalized firm with $22.2MM IPO of June 2004 raised additional $24.34MM Installed new senior management team with entrepreneurial culture and disciplined management system. Implemented innovative funding programs. Invigorated existing broker network channel and created financial institution referral programs

Senior Management & Directors Ivan Wahl – Chairman, CEO & Director –30 years of experience in the Canadian mortgage finance industry. –Played a leading role in the development of the mortgage-backed securitization industry in Canada. –Founded FirstLine Trust Company in 1985, grew and sold the business to CIBC in –Vice-Chairman and Director of CIBC Mortgages Inc. from 1995 to Michael Jones – President & COO –Previously Vice President, Commercial Mortgages for CIBC Mortgages Inc. where he also oversaw the CIBC Access Program. –Joined FirstLine Trust in John Ayanoglou – CFO & Corporate Secretary –Previously the Chief Financial Officer of publicly-listed Cartier Partners Financial Group. –Practiced within Financial Services Group of PricewaterhouseCoopers LLP from 1996 to Karen Martin – VP, Securitization and Capital Markets –Previously the Treasurer of Amicus Holdings (division of CIBC), Director of Balance Sheet Management, and General Manager of Securitization for CIBC. –Manager, Financial Analysis and Manager, Financial Reporting for FirstLine Trust Co. from 1988 to Robert C. Krembil, Director –Co-Founder and former Chairman and CEO of Trimark Financial Corporation. Majority of Board consists of non-related independent directors - 5 -

Shareholders Name Post-IPO Shares% Management6,975,86325% Non-Management Directors6,271,66922% Other Investors15,001,68453% Total28,249,216100% - 6 -

Experience Breadth and depth of senior management and board. Focused channel management. Disciplined underwriting and default management. Entrepreneurial results-based performance model. Product innovation and design. Knowledge of capital markets and proprietary funding programs Risk adjusted pricing that ensures returns are commensurate with risk

Financial Highlights Revenue$1,558M$43,668M130% Mortgages$126MM$1,554MM95% Net Income (1) ($1,127)M$17,791M98% ROAE (3) (34.8%)21.2%26.9% (2) (1)The CAGR figure for Net Income is calculated from fiscal year 2002 as net income was negative in (2)Trailing twelve months ended July 31, 2005, except for Mortgages. (3)The percentage presented is the average ROAE calculated from fiscal year 2002 as net income was negative in CAGR - 8 -

Revenue Growth CAGR 130% Under Previous Management Under Current Management * Xceed’s fiscal year end is October 31. The 2005 balance represents the trailing twelve months ended July 31, 2005.

Mortgage Book Growth CAGR 95% Under Previous Management after 5 years Under Current Management * Xceed’s fiscal year end is October 31. The 2005 balance presented is as at July 31, 2005.

Mortgage Fundings Growth CAGR 69% * Xceed’s fiscal year end is October 31. The 2005 balance represents the trailing twelve months ended July 31, 2005.

Increasing Profitability Under Current Management Under Previous Management Net Income Growth CAGR 98% * Xceed’s fiscal year end is October 31. The 2005 balance represents the trailing twelve months ended July 31, 2005.

Effective Use of Capital Under Current Management Under Previous Management Return on Equity Average 20.2% * Xceed’s fiscal year end is October 31. The 2005 ratio represents the trailing twelve months ended July 31, 2005.

Drivers of Growth Nascent but rapidly growing Canadian non-traditional residential mortgage market. Opportunity for product innovation beyond vanilla 3 year & 5 year offerings. Distribution –Established mortgage broker relationships –Financial Institution channel has only just started to grow. Low variable cost business model provides significant operating leverage. Efficient method of raising capital provides opportunity for high ROE Effective improvements in funding ratios will leverage increased volumes. Continued leveraging of low cost electronic approval / funding system, with single location (in Toronto)

Growth Potential Potential size of Canadian non-traditional market is estimated at 10% of the total residential mortgage financing market (approximately $550 billion) Total outstandings of the non-conforming market in Canada are approximately $8 billion About $50 billion in untapped potential!! This represents 300,000 families living in apartments who may meet our underwriting requirements and would love to own their own homes

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US Market Sub-Prime: $1 Trillion 15% of total mortgage market Credit Quality: Accept poorer credit quality Typical Mortgages Structures: Open (higher prepayments, no penalties) Long terms (e.g., 30-year fixed) Consumer Protectionism: In most states, lender must choose between foreclosure of property or personal assets, not both Gain on Sale Accounting: Volatility of assumptions because of open mortgages and 30 year term structure

25%50%75% 100% ABCABC Traditional Lenders (Big 6 Banks) Home Capital / Equitable Trust Mortgage Loan to Value (LTV) Ratio Borrower Credit Rating Competitive Position GMAC / Wells Fargo XCEED

Market Niche Focus on non traditional market: Non Conforming Credit High Loan to Value Uninsured Origination through two distinct channels: Mortgage Brokers Financial Institutions (referral programs) Execute effective and efficient business model: Concentrate on origination Disciplined credit underwriting Outsourced servicing All new product securitized regularly Entrepreneurial culture with structured management processes

Innovation Established Funding Methodology $62 Million combined warehouse and revolving facility Securitization of mortgages thru regular (non-recourse) sale to Trusts. –Trust senior notes funded through established $100 billion dollar asset-backed commercial paper market –Trust credit enhancement provided by third party investors and Xceed Solid Risk Control Interest Risk immunization thru swaps and other hedging mechanisms. Credit Risk control thru frequent asset quality and compliance reviews by DBRS and Trusts’ securitization agent –First charge, residential mortgages only, regionally diversified, in pre-approved locales –Average mortgage size is $165,000 –For mortgages with LTV > 90%, retain only the risk associated with 80% piece and sell the subordinated piece > 80% to third party financial institution

Financial Model: Pro-Forma Economics (1). Recurring Yield Spreads Mortgage Coupon (4) 7.16% Swap Cost of Funds(3.41%) Gross Spread3.75% Trust Costs (5) (1.19%) Net Spread2.56% Net Operating Expenses (0.66%) Recurring Income1.90% Net Origination Income Application Fees (2) 3.90% Commissions & Other Expenses (3) (3.60%) Origination Profit0.30% (1)Analysis is based on approximations of average portfolio economics over the life of a representative mortgage portfolio. (2) Application fees are based on Xceed’s average product mix. (3)Commissions and other expenses includes hedge costs, cost of yield “buy up” on subordinate co-owned interest. Volume bonus can reduce profit further.. (4)Approximate mortgage coupon rate based on historical average. (5) Trusts costs consist of allowance for losses, cost of credit enhancement, program fees, and MCAP servicing costs

Disciplined Underwriting Under Previous Management Under Current Management Reduction in Loss & Default Percentages (1) Mortgage Default CAGR (12)% (1)Ratios are a percentage of average securitized portfolio under administration. (2)Xceed’s fiscal year end is October 31. The 2005 percentages represent the trailing twelve months ended July 31, (2)

Credit Risk Typical Xceed Mortgage: Homeowner Equity Interest Sold To 3 rd Party F.I. Credit Risk Managed by Xceed 100% 92% 81% Securitized Portfolio

Summary Limited competition Nascent, rapidly growing niche. Strong experienced management. Capital markets proprietary funding models. Performance based culture. Focused multi-channel origination. Disciplined underwriting. Disciplined default management. Risk adjusted pricing model. Flexible, scalable technology with comprehensive relevant reporting capability

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